The Week Ahead: Apple, Facebook, and Boeing to Report Earnings

This week, we expect to hear from Facebook FB and Boeing BA on Wednesday, followed by Apple AAPL on Thursday.

With the coronavirus threatening iPhone supply and demand since February, Apple stated it did not plan to meet its revenue guidance provided on Jan. 28. However, the narrow-moat firm’s situation is still fluid, and we have maintained our fair value estimate and continue to see shares as overvalued for the time being.

While the pandemic has negatively affected Facebook's 2020 revenue, it has also strengthened the firm’s network as its various apps attract more users and increase usage. Small- and medium-size businesses that advertise on Facebook, and all digital ad spending, will feel the negative impacts of the pandemic as well. Overall, we expect the wide-moat firm will rebound in 2021.

The aviation industry is one of the areas that has been hit the hardest by the COVID-19 crisis, and Boeing is no exception. As the world’s largest aerospace and defense firm, Boeing primarily generates revenue from manufacturing commercial aircraft. With the COVID-19 crisis grounding flights all over, Boeing has suspended its dividend. However, we anticipate the wide-moat firm will make a comeback and its dividend will resume once the pandemic passes.

The industrials sector is also expecting earnings from Southwest Airlines LUV on Tuesday and General Electric GE on Wednesday.

Big names in technology are expected to release reports, including 3M MMM and Microsoft MSFT. As for the financial sector, we are keeping an eye out for reports from Visa Class A V and T. Rowe Price TROW.

We expect data from Amazon.com AMZN, Starbucks SBUX, and Tesla TSLA, as well as Ford Motor Co F in the consumer cyclical sector.

PepsiCo PEP and Exxon Mobil XOM are also on our radar for earnings reports in the week ahead.