Earnings season for the fourth and final quarter of 2023 is drawing to a close, with many big names having already reported. The fourth quarter has indeed emerged as the strongest of 2023, with an impressive 79% of companies in the S&P 500 index exceeding expectations on both earnings and revenue, according to FactSet.
The robust financial results have been a boon for the stock market, fueling a strong start to the new year. As we near the end of earnings season, there are still a few notable names left to report, with the potential to influence market direction in the days ahead.
Observing Berkshire Hathaway (BRK.A/BRK.B)
There is always significant interest surrounding the earnings of Berkshire Hathaway (NYSE: BRK.A/NYSE: BRK.B), the holding company headed by the legendary Warren Buffett. Stakeholders eagerly await the earnings report not only for financial insights but also for comments on the state of the economy and market trends. Analysts are keen to assess the performance of Buffett’s diverse portfolio of businesses.
Set to announce earnings after market close on Feb. 23, Berkshire is expected to post an EPS of $3.81 for Class B shares, with revenues hitting $88.42 billion. Of particular intrigue will be the status of the company’s substantial cash reserves following a record high of $157.20 billion at the close of the previous year’s third quarter.
BRK.B stock has climbed 35% over the past year, including a 12% uptick in the current year.
Evaluating Salesforce (CRM)
Salesforce (NYSE: CRM), a leading cloud computing company, is slated to report its latest earnings on Feb. 28. Expectations are running high following the exceptional performance in the previous quarter, which led to a 10% surge in CRM stock. Forecasted figures for Q4 2023 anticipate EPS of $2.27 and revenues reaching $9.22 billion.
Favorable results could propel CRM stock further, building upon the momentum that has already seen a remarkable 11% rise this year and an impressive 74% gain over the past 12 months. Although trading at a premium of 107 times future earnings estimates, Salesforce stands poised to benefit from the robust cloud computing sector.
Assessing Dell Technologies (DELL)
Closing out earnings season on Feb. 29 is Dell Technologies (NYSE: DELL). Market watchers eagerly anticipate signs of a recovery in personal computer (PC) sales, following concerns raised by chipmakers like Intel (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD) regarding a slump in PC sales.
Analysts are projecting EPS of $1.72 and revenues of $22.17 billion for Q4 2023. The upcoming earnings report will offer insights into holiday season sales and provide indications of improving demand between Thanksgiving and Christmas. Dell’s previous quarter earnings displayed mixed results, impacted by weak corporate PC demand, though a rebound is anticipated for the current fiscal year.
Last year, Dell committed to enhancing shareholder value by increasing dividends by 10% annually through 2028 and expanding its share buyback program by $5 billion. DELL stock has surged by 95% over the last 12 months, including a nearly 10% gain year to date.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are solely those of the writer, in accordance with the InvestorPlace.com Publishing Guidelines.
