Earnings Ahead: Palantir, AMD, Disney & McDonald's Take Center Stage Next Week

The first quarter earnings season is gaining momentum, with 121 companies in the S&P 500 scheduled to report their latest results next week. Walt Disney and McDonald's, both Dow Jones Industrial Average components, will be key headliners, alongside significant reports from media companies, restaurant chains, and gig economy platforms. So far, corporate earnings have been strong, with 84% of the 63% of S&P 500 companies that have reported exceeding analysts' expectations, according to FactSet data.

Monday: Palantir Technologies

Palantir Technologies (PLTR) will report earnings after the closing bell, followed by a conference call at 5 p.m. ET. Last quarter, PLTR delivered a beat thanks to robust demand in AI and defense. Analysts polled by LSEG anticipate more than a doubling of earnings compared to the year-earlier period.

What to Watch: Loop Capital's Mark Schappel anticipates a strong report, citing upbeat management meetings, positive field checks, and expert calls pointing to continued AI momentum and a likely beat and raise.

Historical Performance: Bespoke Investment Group data indicates Palantir surpasses earnings estimates 90% of the time, with an average 1.1% stock gain on earnings days.

Tuesday: Pfizer & Advanced Micro Devices

Pfizer (PFE) is set to report before the market opens, with a conference call at 10 a.m. ET. Despite declining demand for its Covid products, PFE exceeded analysts' estimates for both earnings and revenue last quarter. This quarter, LSEG forecasts a double-digit earnings decline year-over-year.

What to Watch: The FDA recently approved Veppanu, a breast cancer drug developed by Pfizer and Arvinas. Wedbush analyst Robert Driscoll noted the drug's promising tolerability profile. Arvinas CEO Randy Teel indicated pricing clarity for Veppanu is expected with an upcoming commercialization deal.

Historical Performance: Pfizer beats earnings estimates 88% of the time, according to Bespoke Investment Group.

Advanced Micro Devices (AMD) will report after the market closes, with a conference call at 5 p.m. ET. AMD's fourth-quarter earnings topped expectations, accompanied by a stronger-than-expected forecast. LSEG data projects double-digit growth in both earnings and revenue compared to the previous year.

What to Watch: Deutsche Bank expects a strong report and guidance, citing secular and cyclical revenue tailwinds and operating margin leverage. However, analyst Ross Seymore believes the positive outlook is largely reflected in AMD's recent share price appreciation, maintaining a 'Hold' rating.

Historical Performance: Bespoke data shows AMD beats earnings estimates 62% of the time. Despite exceeding estimates last quarter, shares fell 17%.

Wednesday: Uber Technologies & Walt Disney

Uber Technologies (UBER) will report before the market's opening bell, with a conference call at 8 a.m. ET. UBER's revenue surpassed estimates last quarter, but profit guidance was soft. Analysts expect double-digit revenue growth against the year-earlier period, but a decline in earnings.

What to Watch: Barclays anticipates solid demand, acknowledging potential cost pressures from higher gas prices and adverse weather. Analyst Ross Sandler believes UBER's breadth allows it to manage these dynamics, and the risk/reward remains attractive despite ongoing concerns about robotaxis.

Historical Performance: Uber beats earnings estimates 61% of the time, according to Bespoke.

Walt Disney (DIS) will report before the market open, with a call at 8:30 a.m. ET. DIS topped analyst estimates for both earnings and revenue last quarter. LSEG data suggests slight year-over-year increases in earnings and revenue.

What to Watch: Disney's first earnings report under new CEO Josh D'Amaro will be closely watched, with investors assessing both financial trends and potential strategic shifts, according to Citigroup analyst Jason Bazinet.

Historical Performance: Walt Disney exceeds earnings expectations 79% of the time, but shares have declined after the last three quarterly reports.

Thursday: McDonald's

McDonald's (MCD) will report before the opening bell, with a call at 8:30 a.m. ET. MCD reported quarterly earnings and revenue that both beat analyst estimates last quarter. Analysts polled by LSEG expect single-digit growth in both earnings and revenue.

What to Watch: Rothschild & Co. Redburn recently upgraded McDonald's to 'Neutral' from 'Sell,' citing a comprehensive value reset, returning U.S. traffic growth, and positive two-year stacked same-store sales trends. GLP-1 medications remain a risk, but cost considerations continue to limit penetration among low-income households.

Historical Performance: McDonald's beats earnings expectations 57% of the time, with the stock gaining after the last three earnings reports.