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Palantir, Alibaba, Walt Disney & Toyota Earnings: What to Expect

Plus500 | Monday 05 February 2024

The week of February 5-7 holds significant releases from various companies as Palantir, Alibaba, Walt Disney, and Toyota are scheduled to report their earnings. 

What will these multifaceted corporations reveal in their earnings reports and how did they fare?

An illustration of an earnings report

Is Palantir Technologies Lagging on the AI Front?

American software company Palantir Technologies (PLTR) is set to release its earnings report on Monday, February 5, after the market closes. 

It might not be surprising to learn that, like many of its tech peers, Palantir has invested efforts in advancing and implementing Artificial Intelligence (AI) in its platforms. The company currently boasts ”a number of AI-powered services.” 

However, these efforts seem to have fallen short of many investors' expectations, resulting in a 20% decline over the past six months. In addition, some analysts, like Brent Thill, have downgraded the stock, labeling it as “overhyped.”

On the flip side, it's worth noting that Palantir's CEO, Alex Karp, has mentioned an unprecedented demand for the company's new AI platform. Additionally, the company reported solid figures in Q3, with a strong gross margin of 81%. 

According to Wall Street analysts, Palantir's Earnings Per Share (EPS) is expected to be 8 cents, and revenue is anticipated to reach $602.79 million. This is an improvement from the year-ago quarter of $508.62 million in revenue and an EPS of 4 cents.

Only time will tell what the company will report and whether these predictions will come to fruition. (Source: Nasdaq)

Toyota Speeds Up

Japanese motors giant, Toyota (TM) is scheduled to report its earnings on Tuesday, February 6, after the ring of the bell.  

While many automotive companies, such as Li Auto (LI), Tesla (TSLA), NIO (NIO), and XPeng (XPEV), have faced challenges this year as deliveries fell and put a strain on their stock prices, Toyota is actually expected to report strong earnings on Tuesday. 

Analysts expect Toyota’s net profit to increase by 47% in the last three months of 2023 from the year-ago period. It appears that improved tourism, better infrastructure, and increased private consumption have boosted Toyota.

However, it is important to note that the company still has some hurdles to face like challenges in exports and high household debts in some countries like Thailand. 

Alibaba Earnings: How Is China’s Tech Sector Faring? 

As tensions in US-Sino technology relations continue to escalate with the US posing further sanctions on Chinese tech, traders and investors may eagerly anticipate Alibaba's earnings report on Wednesday, February 7 (before the market opens). This report promises insights into the performance of the Chinese tech industry amid ongoing tensions with US tech companies.

Wall Street analysts expect Alibaba (BABA) to report an EPS of $2.67, which is below the year-ago quarter’s EPS of 2.79. Additionally, they expect the company to report higher revenue of $36.73 billion, exceeding the year-ago quarter’s revenue of $35.9 billion.

Although the Chinese tech giant’s stock slid by 30% over the past six months, it has recently rebounded a bit, fueled by a “softer regulatory and macroeconomic environment in China.” 

Moreover, like many tech companies, Alibaba is no stranger to the AI game, having introduced numerous AI technologies and tools aimed at propelling the company to the forefront of the cloud industry. 

It will be worth tracking Wednesday’s results to get a better overview of where some of the biggest Chinese tech companies may be headed in 2024.

Are Walt Disney’s Dreams Coming True?

Entertainment behemoth Walt Disney (DIS) is also expected to post its earnings on Wednesday, February 7, after the ring of the bell.

The company is projected to reveal improved EPS and revenue figures. The projected EPS is $1.04, with expected revenue reaching $23.79 billion. If these forecasts materialize, they would surpass the year-ago quarter's EPS of 99 cents and revenue of $23.51 billion. 

One of the company’s standout products appears to be the Disney+ streaming service, which achieved an impressive milestone by gaining 150.2 million total subscribers.

Traders will need to await Wednesday's report to unveil the company's performance and determine how it might navigate the upcoming months.

Conclusion

The week of February 5 holds significant reports from some of the biggest companies in the market. These earnings can provide valuable insight into various market sectors and the state of the global economy as they stem from companies from the US, China, and Japan.


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