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Second Quarter Earnings Season in Full Swing
Merck is set to report earnings before the bell. Analysts are expecting the company to post a loss for the quarter. Investors will be watching for updates on Merck's experimental drugs and whether the company's M&A spree will continue through 2023. They will also be interested in the company's lawsuit seeking to halt Medicare drug price negotiations.
Starbucks will report earnings after the bell. Analysts expect the company to report double-digit earnings growth. Investors will be looking for signs of a turnaround, especially in light of increased street traffic, indicating a return to pre-COVID levels of mobility.
Pfizer is set to report earnings before the open. Analysts are forecasting a significant year-over-year earnings decline for the pharmaceutical giant. Investors will be interested in Pfizer's plans to pivot away from its COVID products as demand wanes and updates on several near-term drug launches.
Amazon will report earnings after the bell. Investors will be focusing on the performance of the company's cloud unit, Amazon Web Services (AWS), which has experienced slower growth in recent quarters. Analysts will also be interested in Amazon's plans around AI, improvements in retail margins, and progress on one- and same-day delivery.
Apple is set to report earnings after the close. The tech giant has seen strong growth in its iPhone sales, and analysts are expecting a small earnings decline compared to the previous year. Investors will be watching to see if Apple can maintain its momentum and exceed estimates in its upcoming earnings report.
Conclusion - Impact on New Businesses
As the second quarter earnings season is in full swing, it provides valuable insights for new businesses navigating the market. Each company's performance and the factors influencing their earnings can offer potential lessons and opportunities for emerging enterprises. Here is a "hot take" analysis on how these earnings reports may impact new businesses:
1. Merck: This pharmaceutical company's focus on experimental drugs and ongoing M&A activities highlight the importance of innovation and strategic partnerships. New businesses should prioritize research and development and explore potential collaborations to position themselves for success.
2. Starbucks: The anticipated double-digit earnings growth indicates a potential turnaround for the coffee giant, signaling a revival in consumer demand. This suggests increased opportunities for new businesses in the food and beverage industry, especially those offering unique experiences or innovative products.
3. Pfizer: The projected earnings decline for Pfizer emphasizes the need for adaptability in the healthcare sector. New businesses should be aware of changing market dynamics and consider diversifying their product offerings or exploring partnerships to mitigate potential downturns.
4. Amazon: The focus on Amazon Web Services (AWS) performance highlights the significance of cloud computing in the digital landscape. New businesses should prioritize investing in robust digital infrastructure and explore ways to leverage cloud services to enhance operational efficiency and scalability.
5. Apple: Despite a slight earnings decline, Apple's strong growth in iPhone sales showcases the importance of consistently delivering sought-after products. New businesses should prioritize market research, customer insights, and product development to meet evolving consumer needs and preferences.
Overall, new businesses should closely monitor the second-quarter earnings reports and draw insights from these established companies to adapt their strategies, prioritize innovation, explore partnerships, and leverage emerging technologies to thrive in today's competitive landscape.
Article First Published at: https://www.cnbc.com/2023/07/31/earnings-playbook-how-to-trade-some-of-the-biggest-reports-this-week-including-apple.html