Next week on the stock market

Baker Hughes expects first quarter revenue to land between $6.1-$6.6bn. At the mid-point that’s growth of 11% over the same period last year. Investors will be hoping for an uptick in order intake which fell 14% in the fourth quarter of last year to $6.9bn. But challenges remain in the onshore US market where drilling activity has been relatively weak. The number of active drilling rigs is holding up better in international markets, with all regions bar the Middle East and Latin America reporting a month-on-month increase in March. We’ll be looking for commentary on whether the company sees any impact from the recent escalation of tension in the former region

Management has delivered substantial margin improvement in recent years and that’s a continued area of focus. Analysts are expecting an underlying cash profit (EBITDA) margin of 14.5%, up from 13.7%. Baker Hughes plans to improve efficiency and increase higher margin services revenues from its growing base of installed technology. But it’s a fine balancing act as it looks to invest resource in beefing up its new energy solutions.

Lloyds is the first of the major UK banks to report first quarter earnings next week. We expect weaker results than this time last year, with net interest margin expected to fall from 3.22% to 2.93%. While the drop is expected, and more a result of the particularly strong environment this time last year when rates were being hiked, anything lower than 2.90% would likely be punished.

There’s also the ongoing issue of an FCA investigation into motor financing to contend with. As one of the more exposed banks, Lloyds has already set aside £450mn in preparation for charges. It’ll be interesting to see whether management has any further commentary here, up to now details have been hard to come by.

Loan defaults are the other key thing to watch, with analysts pencilling in £280mn of impairments. We see scope for a better result here and expect to hear commentary that borrowers remain resilient. Performance clearly peaked last year, but several tailwinds yet to play out could give room for upside. Of course, there are no guarantees.

Facebook owner Meta set the bar high last quarter after beating expectations. Expectations are that first quarter revenue will be $34.5bn - $37.0bn, and any deviation from that will be sorely punished. The group’s benefiting from a resurgence in digital advertising, which came off the boil during the worst of the uncertainty in recent years.

A number that will be watched even more keenly than ad spending will be Meta’s expenses. The group has been forced to refocus on core activities and rein in its undefined and extravagant spending plans in recent memory, but it’s still looking to spend up to $99bn this year. There will be hope that some more detail on where this is being funnelled could be served up in next week’s results.