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The week's earnings: Look out for Apple, Amazon and BASF

BySaxo Bank
AuthorSaxo Bank
Published 07/19/2013, 10:46 AM
Updated 03/19/2019, 04:00 AM
FTNMX552010
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The earnings season continues in full throttle next week with the most important releases being Apple on Tuesday, with Amazon and BASF reporting on

Thursday.

Apple (AAPL) is expected to report EPS of 7.29 on Tuesday down 22 percent year-over-year driven by weaker demand for the iPhone 5 and generally more competition across all product categories. The expected decline in earnings seems very large and analysts might have moved to being too negative on its performance. An upside surprise to earnings could very well happen. More importantly for the share price is what CEO Tim Cook has to say about its future product releases and how Apple sees its outlook for the coming year.

BASF (BASF) is expected to deliver EPS of 1.52 on Thursday down six percent year-over-year likely driven by a weaker global economy in the second quarter which has been a negative surprise given the expectations for growth in the end of the first quarter. Our take is that the profit decline will be a bump on the road for the chemical giant as the global economy will continue to expand over the coming years leading to growing demand for BASF's chemicals and other products.

Amazon (AMZN) is expected to deliver EPS of 0.46 on Thursday (after the market close) up 360 percent. The huge increase profit is due to the huge investments from last year in its cloud computing business, warehouse infrastructure and Kindle production that lower profits and thus this quarter's earnings are compared to an artificially low base. Last earnings release, the big driver for investors were the lower-than-anticipated gross profit and gross margin which historically are what investors care about for Amazon (at least in the short-term as it built its online retail empire) so this is key to watch.

See all next week's earnings releases in the attached PDF.

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