We're past Microsoft and Tesla earnings, so now it's over to other big names - McDonald's and Apple, which reveal their earnings next week, on January 31st and February 2nd respectively. Gary Thomson, Chief Operating Officer at FXOpen UK, shares his thoughts on both companies' performance.
FXMAG.COM: Earnings season is underway: what do you expect from McDonald's and Apple next week?
Gary Thomson, Chief Operating Officer at FXOpen UK: Over the past five days, McDonald's shares have been reasonably stable in value, apart from a sudden dip at 9.30am on January 24 during the US trading session, which caused the price to go down from $269 per share to $248 in a very short space of time. This recovered almost immediately and just 30 minutes later it was back to $269 which it remains at today.
Taking a slightly longer view, McDonald's shares have been trading at relatively high values since November 2022 compared to earlier in the year, and have maintained their value ever since.
Currently, it is anticipated by several analysts that the EPS forecast for the quarter ending December 2022 is $2.44. The reported EPS for the same quarter last year was $2.23.
The analysts which have so far provided a forecast have estimated a median target of 294.00, with a high estimate of 328.00 and a low estimate of 250.00, which is a considerable increase of around 9.3% on average from the previous median price.
If this comes to fruition, it is entirely possible that the stock could at least hold its high position, or even raise in value a little more. If the latter takes place, it would place McDonald's stock at the higher end of its average values for the past 12 months.
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As far as Apple is concerned, the last few months have not been ideal for US tech stocks in general, with many of them having declined in value over a 12 month period compared to their values at the beginning of the year 2022. Some large Silicon Valley firms have recently announced significant staff redundancies, which despite being a sign of hard times, has recovered their share prices due to potential cost savings.
Apple could potentially be in the same category as those who have looked to save during hard times such as Alphabet (Google) and Meta (Facebook).
The estimated median target for the forthcoming earnings report for the fourth quarter of 2022 shows that analysts think that a healthy 20% increase in median target is possible for Apple, and whilst Apple has not been immune to the tech stock slowdown, its values have been climbing over the period of the past 30 days, which is encouraging.