The new earnings season of Q1 2022 kick off by banks this week. There are a lot of posts about big banks earnings, so I won't say them. Please watch:
US Banks Q1 Earnings Preview: JPM, WFC, C, MS, and GS
7 Financial Stocks Reporting Earnings the Week of April 11
Banks' Q1 Earnings Will Reflect Strong Consumer, Weak Equity Capital Markets
Beside of Banks, we also should pay attention to the earnings results of$Delta Air Lines(DAL)$,$Bed Bath & Beyond(BBBY)$ and$Taiwan Semiconductor Manufacturing(TSM)$ , and see how they discribe industries and supply chains.
$Delta Air Lines(DAL)$, which is the first American airline compainy to release finacial result. It will release on Wednesday before market open. Delta will give certain macro guidance to airline, tourism and other travel-related industries.
In the first quarter of this year, the international situation had some sudden change, investors worries about the impact of fuel prices on airlines.
Although the epidemic variant inhibited the progress of global tourism demand recovery, Delta Airlines maintained its profit guidance for the full year of 2022 in last earnings conference. Delta said that the surge of COVID-19 variants will drive it to a loss in the first quarter, but it still expects to make a profit in the full year due to stronger travel demand. Delta's CEO made clear last quarter that omicron was expected to delay the rebound in air travel by about 60 days, predicting losses in January and February before making a profit in March.
According to Refinitiv, analysts expect Delta to report a quarterly loss in Q1, but analysts believe that this Q1's revenue has more than doubled compared with the same period last year. On the other hand, investors have to pay attention to the fuel cost.
CNBC airline reporter Leslie Josephs said: "Delta is the first U.S. airline to report earnings, and investors are concerned about how much the airline can raise fares to cover the surge in fuel costs. On the one hand, travel demand has surged with the decrease in the epidemic situation. But for airlines, the cost of flying aircrafts will be more expensive. That means they have to balance coverage costs rather than turning away customers with exorbitant prices at a time when inflation is already high. Airline executives are also likely to spell out their staffing levels as the summer tourist season approaches. "
Delta Air Lines closed down about 6% this year, double the lowest point of the epidemic.
Bed Bath & Beyond$Bed Bath & Beyond(BBBY)$ will also release its financial report on Wednesday.
Last quarter, due to the impact of supply chain, BBBY released less than expected data and cut its full-year guidance for 2022. However, BBBY used to be a meme-stocks, and its stock price fluctuated violently, often to short squeeze. BBBY is still one of the most seriously shorted stocks. After the last result was released, it fell by 9% before the market, and then rebounded by 8% that day.Investors should pay more attention to the supply chain guidance and inflation expectations brought by BBBY.
BBBY's CEO said last quarter that unfavorable factors in the supply chain would persist into the future and impact its performance. BBBY also lowered its full-year guidance that sales revenue to be 7.9 billion US dollars from 8.1-8.3 billion US dollars , with an adjusted loss of 15 cents per share.
According to Refinitiv, analysts expect Q1's revenue to fall 20% from YOY base. On the other hand, the company still operates a share repurchase plan. It is expected to complete a three-year $1bn share buyback program by the end of the fiscal year, and buybacks may also be a key factor in forcing of short squeeze.
CNBC retail reporter Melissa Repko said: "Investors want to see proof that BBBY turnaround efforts are working and its supply chain problems are dissipating. This homeware retailer's previous sales have been disappointing, even as it launched new brands, closed underperforming stores and spined off some other businesses. "
$Taiwan Semiconductor Manufacturing(TSM)$ will be released its release on Thursday before marketopen. As the first semiconductor company to press earnings, TSMC has always attracted investors.
You can read：
TSM Q1 Earnings Preview: Maintain Sales and Capital Spending Forecasts for 2022
TSMC reported its record sales in the first quarter last week. The company said that the combined sales in January-March were NT $491.08 billion (US $16.99 billion), up 12.07% from the previous quarter and 35.5% from the same period of last year. This result is higher than the first quarter sales guidance of NT $458.16 billion to NT $474.72 billion put forward by TSMC at theconference in January.
While the first quarter was an off-season for the global semiconductor industry, TSMC was unaffected due to strong demand for high-performance computing devices and automotive electronics, analysts said.
In March, TSMC's combined sales were NT $171.97 billion, up 17% from February, due to an increase in working days after the Lunar New Year holiday that ended on February 6. According to TSMC, March's consolidated sales were the second-highest monthly level in history, after January's NT $172.18 billion, and also up 33.2% from the same period last year.
The financial result will be released against the background of global semiconductor shortage, which has reverberated throughout the supply chain and affected the production of a large number of products in recent months. In response, TSMC plans to invest $100 billion in the next three years to increase production capacity.
At the end of March, Mark Liu, chairman of TSMC, said that although the shutdown of TSMC's factory in Shanghai may affect the demand for products such as smart phones and televisions, TSMC still maintained its capital expenditure plan of 40 billion to 44 billion US dollars in 2022. TSMC also maintained its forecast of sales growth of 25-29% in 2022.
Demand for mobile phones、smart TVs and other small components from manufacturers such as Apple and Samsung remains strong, while the shortage of chips has not eased-according to the research of Susquehanna Financial Group, the waiting time for semiconductor delivery increased again in March due to the impact of the epidemic.
TSMC's inventory strategy on key materials such as silicon wafers and industrial gases will be the focus of the first quarter results conference, because the supply situation is blurred by the increasing geopolitical tensions and the slow growth of global silicon wafer production capacity.
Investors will pay close attention to the company's wafer demand prospects, as reports say it is seeking to raise chip prices by 20% in the short term. Other key issues that need attention include the company's guidance on capital expenditure and its views on supply chain inventory.
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