The second half of the earnings season begins this week, with key companies from different sectors expected to report. AMD, Clorox and Starbucks are among the approximately 150 components of the S&P 500 that will announce results. For the most part, the season has been better than expected. FactSet data shows that just over 70% of S&P 500s that reported earnings beat earnings expectations. Among these are the industrial giants Caterpillar and Honeywell. Granted, there have been some big disappointments, like Meta Platforms and Alphabet. Find out some of the top companies set to report results this week and what investors can expect from each report. Advanced Micro Devices is expected to release earnings after the bell on Tuesday, followed by a conference call at 5 p.m. ET. Last quarter: AMD reported better-than-expected earnings and revenue, but the stock fell after the chipmaker issued a disappointing forecast. This quarter: Earnings per share are expected to fall more than 6%, although revenue is expected to post double-digit gains, according to Refinitiv. What CNBC is watching: Falling demand for personal computers and supply chain issues are weighing on the chipmaker’s results. Earlier this month, AMD cut its revenue forecast by 16%. Investors will focus on the company’s prospects. They will want to know if there are any signs that the PC market is nearing bottom. Some analysts have seen slowing data center revenue at rival Intel as a sign that AMD could gain market share here. Investors will seek to learn more about this on the call. What history shows: AMD averages a 1.5% share gain on earnings days, though the company beats earnings estimates about 77% of the time, according to data from Bespoke Investment Group. However, FactSet data shows that AMD has exceeded expectations in 10 of the past 11 quarters. Clorox is expected to report earnings after the close. Management is due to hold a call at 5 p.m. ET. Last quarter: CLX posted slightly disappointing revenue and expects revenue to decline for the year. This quarter: The household cleaning products maker is expected to post a sharp decline in profits and revenue. Analyst estimates call for a more than 38% drop in earnings per share, while revenue could fall more than 6%, according to Refinitiv estimates. What CNBC is watching: Investors will likely want to know if the company sees consumers turning to cheaper products as inflation continues to eat away at household budgets, especially among lower-income consumers. They’ll also likely want to know more about the fallout from a recent recall of its Pine-Sol cleaning products. Management has attempted to cut costs and raise prices to compensate for rising raw material prices. What history shows: Clorox earnings exceeded expectations 76% of the time, according to Bespoke. However, the stock typically struggles on earnings days, losing an average of 0.27%. Yum Brands is expected to release earnings before the bell on Wednesday, with management holding a call at 8:15 a.m. ET. Last quarter: YUM reported stronger sales for its Taco Bell business, but said shutdowns in China were hurting KFC sales. This quarter: Yum should see a slight increase in revenue year over year, but EPS will likely be nearly 6% lower than last year, according to a Refinitiv analyst survey. What CNBC restaurant reporter Amelia Lucas is watching: Other restaurant businesses have seen traffic decline as consumers around the world factor in inflation. Like rivals, Yum and its franchisees raised menu prices to mitigate higher costs, allowing lower-income consumers to spend less at KFC, Pizza Hut and Taco Bell last quarter. Investors will be watching to see if the trend is accelerating. Lockdowns in China will also likely hurt Yum’s results this quarter. What history shows: Yum has missed earnings expectations for the past three quarters, according to FactSet. However, the company’s shares rose on two of those earnings days. EBay is expected to report earnings after the bell, followed by a call at 5 p.m. ET. Last quarter: EBAY shares fell after the online goods seller issued a weak profit forecast. This quarter: Despite an expected decline of more than 7% in revenue, eBay could see its profits increase by around 3%, according to analysts polled by Refinitiv. What CNBC tech reporter Annie Palmer is watching: EBay CEO Jamie Iannone has invested heavily in spendthrift users, called avid buyers, and so-called focus categories like jewelry, sneakers and collectibles . That helped the company deliver better-than-expected earnings last quarter, despite slowing consumer spending amid a slowing economy. Analysts will be listening to what the company has to say about the macro pressures ahead, as well as any guidance for the holiday quarter. What history shows: EBay has exceeded earnings per share expectations for the past 16 quarters, according to FactSet. However, the bespoke data shows the stock posting an average decline of 0.14% on earnings days. On Thursday, Moderna is expected to report pre-market earnings. Management is expected to hold a call at 8 a.m. ET. Last quarter: MRNA earnings beat expectations, but the company wrote off $500 million in expiring Covid injections. This quarter: The biotech company is expected to post a more than 57% decline in profits on a 29% decline in revenue, according to Refinitiv. Demand for its Covid-19 vaccine has waned as some consumers have been slow to roll up their sleeves for booster shots. What CNBC is watching: Investors are hungry for more on-demand colors and prices for Covid booster shots. It will be interesting to see what management expects in the coming months if Covid cases increase in the winter. Moderna said it could charge up to $100 per dose for injections once payment shifts to private insurers. Amid pandemic fatigue, investor interest has shifted to the company’s pipeline and shareholders will want updates on its progress. What history shows: Moderna’s earnings per share have exceeded expectations in seven of the past 10 quarters, according to FactSet. Starbucks is expected to report earnings after the bell, and company management is expected to hold a conference call with an analyst at 5 p.m. Last quarter: SBUX reported better-than-expected earnings, in part due to strong US demand for cold beverages. This quarter: Despite a projected 2% increase in revenue, analysts expect Starbucks earnings to fall nearly 28%, according to Refinitiv. What CNBC restaurant reporter Amelia Lucas is watching: Last quarter, interim CEO Howard Schultz told investors that inflation was not hurting demand for Starbucks coffee. Wall Street wants to know if that has changed, especially since many other restaurant chains are reporting a drop in traffic. Investors also want more details on the progress of its reinvention strategy, which it unveiled last month. Although Schultz still leads the company, new CEO Laxman Narasimhan could make an appearance on the quarterly conference call. What history shows: Starbucks only exceeded profit expectations 54% of the time, according to Bespoke. However, the title averages a gain of 0.6% on results days. PayPal is set up to report income after closing. A conference call is scheduled for 5:30 p.m. ET. Last quarter: PYPL published better than expected results. Elliott Management also disclosed a $2 billion stake in the company. This quarter: Analysts forecast a 10% increase in revenue, but earnings per share are expected to fall nearly 14%, according to Refinitiv estimates. What CNBC is watching: Investors will want to know more about Venmo’s partnership with Amazon. The payment option will be live on the e-commerce site ahead of the busy holiday season, and many see the development as a huge win for PayPal. Analysts will want to know if the deal will serve as a catalyst for wider adoption of Venmo as a payment option for other retail sites. What history shows: PayPal generally does well on earnings days, with the stock posting an average gain of 1.1% on those days, according to Custom Data. The company also beat earnings estimates in seven of the past 10 quarters, per FactSet.
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