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Amazon, Twitter, Intel earnings — What to know in markets Thursday

Heidi Chung

Tech takes the spotlight Thursday when three big names gear up to report quarterly results: Amazon (AMZN), Twitter (TWTR) and Intel (INTC).

Twitter will report earnings ahead of the opening bell. Analysts polled by Bloomberg expect the social media company to report adjusted earnings of 20 cents per share on $875.62 million in revenue during its third quarter. Daily active users (DAU), a key metric for social media companies, are expected to total around 141 million with about 2 million new additions during the third quarter. DAU growth at Twitter has seen meaningful acceleration over recent quarters, and analysts are expecting that trend to have continued during its most recent quarter.

“Management has become more confident that product improvements are showing causal benefit to DAU growth and highlight continued momentum in product innovation,” Loop Capital Markets wrote in a note to clients Wednesday. “We think continued acceleration in user growth could challenge investors to rethink the company’s long-term potential. We think TWTR valuation would see meaningful upside if the service breaks out of “niche” adoption and becomes a daily habit for the mass-market internet population.”

Twitter stock surged 35% this year and has outpaced the S&P 500’s (^GSPC) 21% gain in the same time period. The options market is implying about an 11% move in either direction following the company’s report.

Amazon CEO Jeff Bezos discusses his company's new Fire smartphone at a news conference in Seattle, Washington. REUTERS/Jason Redmond (UNITED STATES - Tags: SCIENCE TECHNOLOGY BUSINESS TELECOMS)

After the market close, e-commerce behemoth Amazon is expected to reported adjusted earnings of $7.55 per share on $68.70 billion in revenue during its third quarter, according to analysts polled by Bloomberg. Online retail sales, Amazon Web Services (AWS) growth and margin expansion will be key focal points during the quarter.

“We anticipate that Online will continue to rise by ~100 bps per year from the present 11% U.S. Online Penetration level,” RBC Capital Markets predicted in a note Sunday. “By our estimate, AMZN already accounts for roughly 20% of U.S. Online Retail Sales, but its strong mobile positioning and infrastructure advantages facilitating next-day and SDD (same-day delivery) should enable it to continue taking share.”

When it comes to AWS, RBC analyst Mark Mahaney estimates about 37% revenue growth for the cloud business. Mahaney currently has an Outperform rating on Amazon stock with a $2,600 price target. His price target represents about a 48% move higher from current trading levels. Amazon shares have been trailing the broader market and risen a modest 16% so far this year. The options market is implying about a 4.5% move in either direction following the earnings announcement.

Chipmaker Intel will also report third-quarter financial results after the closing bell Thursday. Intel’s Client Computing Group segment and overall sales are expected to have gotten a boost from corporate PCs. The chipmaker has chip-pricing power, and that is often a driver of solid sales results.

Intel shares jumped 7% after-hours following the company’s second-quarter results that beat analysts’ expectations. CEO Bob Swan addressed the issues surrounding the ongoing trade war between the U.S. and China on the Q2 earnings conference call. “Trade uncertainties created anxiety across our customers’ supply chain and drove a pull-in of client CPU orders into the second quarter. We also halted shipments to certain customers in response to the U.S. government’s revised entity list. After a thorough review we were able to resume shipments of some products in compliance with regulations, and the net impact on the second quarter was limited.”

Investors will likely expect further commentary from management about tariffs and tariff related headwinds for Intel. Intel stock rose 12% this year and is underperforming its peers. The Philadelphia Semiconductor Index (SOX) surged 39% in the same time period. Analysts polled by Bloomberg expect Intel to report adjusted earnings of $1.24 per share on $18.03 billion in revenue during Q3. The options market is implying about a 5.4% move in either direction following the chipmaker’s results.

Other notable earnings reports scheduled for Thursday include Southwest Airlines (LUV), Comcast (CMCSA), Valero (VLO), Dow Inc (DOW), T-Mobile (TMUS), Northrop Grumman (NOC), Hersey (HSY), Raytheon (RTN), 3M (MMM), American Airlines (AAL) before market open; Capital One Financial (COF), Visa (V), Gilead (GILD) after market close.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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