After Tuesday's market close, we have quarterly results on deck from Alphabet (GOOGL) , Chipotle Mexican Grill (CMG) , and Microsoft (MSFT) as well as Mastercard (MA) competitor Visa (V) . Those results will be among the sea of other quarterly earnings being reported and here's what Wall Street expects each of them to deliver for the June quarter and guide to for the current one:
- Consensus expectations for Alphabets's June quarter are earnings per share of $1.31 on revenue of $70 billion, while those for its September quarter are $1.40 and $73.08 billion, respectively.
- Consensus expectations for Chipotle's June quarter are EPS of $9.04 on revenue of $2.24 billion while those for its September quarter are $8.60 and $2.24 billion, respectively.
- Consensus expectations for Microsoft's June quarter are EPS of $2.30 on revenue of $52.47 billion while those for its September quarter are $2.48 and $51.6 billion, respectively.
- Consensus expectations for Visa's June quarter are EPS of $1.74 on revenue of $7.06 billion while those for its September quarter are $1.82 and $7.41 billion, respectively.
While those are the hard numbers against, which each of those companies will be measured, the underlying drivers will be of interest to us. Across Alphabet, Microsoft, and Visa, foreign exchange will be a key topic and we expect all three to at some point discuss their business in terms of constant currencies. Given that nearly all of Chipotle's business is domiciled in the U.S., currency isn't likely to be an issue, but in its place will be food-input costs and therefore questions over further price increases in 2022.
Two other items that are likely to be closely watched at both Alphabet and Microsoft will be advertising revenue, especially following the recent earnings debacle at Snap (SNAP) , and expectations for cloud spending in the second half of 2022. Data center spending has been a bright spot in the chip space, and a positive outlook should buoy shares of AMD (AMD) and Nvidia (NVDA) . Those two stocks will also be influenced in the near-term by what Microsoft has to say about its PC and gaming businesses. Industry data for PCs has pointed to softening demand, and this morning we learned from Logitech International (LOGI) its gaming business fell 16% year-over-year in the June quarter. Once we have those cloud and gaming comments in hand, we'll have a much better sense as to how solid upcoming results from AMD and Nvidia will be. That will likely influence the very near-term for both stocks, but in terms of the longer-term there is little question about the continued growth in data creation, consumption that will drive demand for data center and network densification.
With the table set, we'll be sharing our thoughts with members in greater detail once we have digested the earnings press releases and corresponding earnings conference calls.