Earnings week ahead: Tesla, Twitter, Netflix, Snap, and more

Jul. 15, 2022 12:27 PM ETTesla, Inc. (TSLA), TWTR, T, JNJNFLX, IBM, SCHW, MSFT, VZ, AXP, BAC, JPM, GS, AN, BIIB, AA, ABT, DHR, HAL, ASML, MAT, LMT, UNP, BKR, SLB, MS, DHI, WFC, DPZ, JBHT, EFX, CLF, HAS, LAD, WBD, DAL, PLD, TSCO, PM, AAL, SNAPBy: Kevin P. Curran, SA News Editor6 Comments

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After a summer lull, earnings season accelerates into mid-July with a spate of reports from some of the world’s most high-profile companies. This includes two big names tied to Elon Musk -- Tesla (NASDAQ:TSLA) and Twitter (NYSE:TWTR). The schedule also includes major banks, pharmaceutical companies and high-profile airlines, as well as tech and telecom giants.

The week starts with names like Goldman Sachs (GS), Bank of America (BAC) and IBM (IBM). Later on, Wall Street will receive reports from the likes of Netflix (NFLX), Snap Inc. (SNAP), AT&T (NYSE:T) and Verizon (VZ).

Below is a broader rundown of key earnings reports due in the week of July 18-22.

Monday:

Bank of America (BAC)

Beginning the busy week, Bank of America (BAC) will update investors on its second quarter performance prior to Monday’s market open. The report comes shortly after peers JP Morgan (JPM) and Morgan Stanley (MS) missed estimates with their quarterly reports.

With this downbeat start to earnings season, shares of the Charlotte-based bank fell over 7% in the week prior to the earnings update.

  • Consensus EPS Estimates: $0.75
  • Consensus Revenue Estimates: $22.79B
  • Earnings Insight: The bank has beaten EPS estimates in 8 consecutive quarters but has only exceeded revenue expectations in half of those reports.

Goldman Sachs (GS)

Similar to BAC, Goldman Sachs (GS) is set to report earnings following inauspicious reports from JP Morgan, Morgan Stanley, and Wells Fargo (WFC). For Goldman Sachs specifically, the consumer business is projected by internal estimates to be a sore spot. The company anticipates a $1.2B loss related to the business in 2022.

  • Consensus EPS Estimates: $6.70
  • Consensus Revenue Estimates: $10.77B
  • Earnings Insight: Goldman Sachs has beaten revenue estimates in 8 consecutive quarters, missing EPS estimates only once.

IBM (IBM)

IBM has outperformed many of its technology peers in 2022, rising just over 1% against a decline in the S&P 500 of over 20% decline in the S&P, with even starker declines in major tech indices.

The earnings report will come shortly after the company announced the acquisition of Israel's Databand.ai. The firm also signaled plans to “wind up” business in Russia. Per Bloomberg data, options markets are implying a 5% move on earnings day.

  • Consensus EPS Estimates: $2.29
  • Consensus Revenue Estimates: $15.18B
  • Earnings Insight: IBM has bested EPS estimates in all but one of the past 8 quarters, exceeding revenue estimates in 6 of those reports.

Also reporting: Schwab Corp. (SCHW) and Prologis (PLD)

Tuesday:

Netflix (NFLX)

Last quarter, Netflix (NFLX) revealed a net loss of 200K subscribers, a discloser that sent shares spiraling following the release of its quarterly report. All told, the stock has fallen about 70% so far in 2022.

Meanwhile, NFLX is working towards creating an ad-supported subscription tier. Shortly before the earnings report, the company signed a surprise ad-supported streaming deal with Microsoft (MSFT).

  • Consensus EPS Estimates: $2.96
  • Consensus Revenue Estimates: $8.04B
  • Earnings Insight: Netflix has beaten EPS estimates in 50% of earnings reports in the past two years, while rising above revenue estimates in all but one update.

Lockheed Martin (LMT)

U.S. defense contractor Lockheed Martin (LMT) will provide its second quarter update prior to the market open. The stock has been a significant outperformer in 2022, rising over 13% against a more-than-20% decline in the S&P.

The stock has particularly accelerated since Russia’s invasion of Ukraine in February and the subsequent increase of military budgets both in the US and Europe. Of particular note, the company won a $2.2B contract to produce Blackhawk aircraft at the close of June, adding to a slate of new contracts in 2022.

  • Consensus EPS Estimates: $4.31
  • Consensus Revenue Estimates: $15.95B
  • Earnings Insight: Lockheed Martin has exceeded EPS expectations in 6 of the past 8 quarters and revenue estimates in 5 of those reports.

Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson (JNJ) will report its second quarter earnings results prior to the market open on Tuesday. The stock has been a resilient name amidst market turmoil in 2022, rising about 3% so far during the year. Still, shares have edged lower ahead of the earnings release as neurodevelopmental risks associated with its seizure med Topamax come under scrutiny.

  • Consensus EPS Estimates: $2.56
  • Consensus Revenue Estimates: $23.86B
  • Earnings Insight: Johnson & Johnson (JNJ) has beaten EPS estimates in 8 straight quarters, surpassing revenue expectations in 5 of those quarters.

Also reporting: JB Hunt (JBHT) Hasbro (HAS), and Halliburton (HAL)

Wednesday, July 20

Tesla (TSLA)

In one of the most anticipated reports of the week, Tesla (TSLA) will provide its second quarter earnings update after the market close on Wednesday. The company has contended with supply chain disruptions in China and a dip in deliveries for the first time in two years.

The report also comes shortly after the shuttering of the automaker’s San Mateo office, the departure of its AI head, and a stark decline in the price of Bitcoin (TSLA has added the cryptocurrency to its balance sheet). Shares of the Austin-based EV manufacturer have declined over 40% year to date, with the bulk of that decline coming since April.

Nonetheless, analysts remain broadly optimistic. According to Seeking Alpha data, 14 analysts currently maintain a Strong Buy rating, alongside eight Buy ratings. Meanwhile, the stock has attracted two Strong Sell and five Sell ratings.

Analyst Victor Dergunov has taken a bullish view ahead of the earnings report, saying the stock is much cheaper than it was in late 2021, with "several positive catalysts" that could possible spark investor interest.

  • Consensus EPS Estimates: $1.83
  • Consensus Revenue Estimates: $17.09B
  • Earnings Insight: Tesla has beaten revenue estimates in 8 straight quarters, missing EPS expectations only once in that period.

ASML Holding NV (ASML)

Dutch lithography leader ASML Holding (ASML) will offer a second quarter update prior to Wednesday’s market open. Per Bloomberg, the company is currently in talks with both EU and US officials to close off sales to China, its third largest market behind Taiwan and South Korea.

The firm’s proprietary EUV technology makes it the only firm in the world capable of making the most advanced chips. Shares have fallen over 40% in 2022 as the semiconductor industry overall has slid sharply.

  • Consensus EPS Estimates: $3.55
  • Consensus Revenue Estimates: $5.41B
  • Earnings Insight: ASML has beaten EPS estimates in 75% reports in the past two years, but only exceeded revenue expectations in 50% of those earnings updates.

Alcoa (AA)

The largest aluminum producer in America, Alcoa (AA), will offer its second quarter earnings update on Wednesday after the market close. The report for the industrial giant comes shortly after benchmark aluminum on the London Metal Exchange fell to its lowest price in over a year.

After a significant spike in price into the close of 2021, the commodity has seen prices collapse in the time since, falling from a peak of over $3750 in December to just over $2300 ahead of earnings. Amid swings in the aluminum market, the stock has marked a wide 52-week range from $31 to $98.09.

  • Consensus EPS Estimates: $2.76
  • Consensus Revenue Estimates: $3.58B
  • Earnings Insight: Alcoa has exceeded EPS estimates in 8 straight quarters, missing revenue expectations only once in that span.

Also reporting: Biogen (BIIB), Abbott Laboratories (ABT), Equifax (EFX), Baker Hughes (BKR), and Lithia Motors (LAD)

Thursday, July 21:

Snap Inc. (SNAP)

Snap Inc. (SNAP) saw its stock fall 43% on a single day in May, its worst single-day decline ever. The drop came after the social media firm significantly cut its guidance for the second quarter. Now, the Santa Monica-based company will report those second quarter earnings results, with the details due out on Thursday after the market close.

In announcing its warning, CEO Evan Spiegel blamed a deteriorating macroeconomic environment. Amid the downbeat estimates from management, Wall Street analysts have revised revenue figures down 27 times in the past three months, per Seeking Alpha data.

Even with the recent plunge in its stock price, analyst Michael Wiggins De Oliveira remains skeptical on SNAP, saying it remains "too risky to buy."

  • Consensus EPS Estimates: -0.03
  • Consensus Revenue Estimates: $1.14B
  • Earnings Insight: Snap has beaten EPS estimates in 7 of the past 8 quarters, besting revenue estimates in 6 of those quarters.

American Airlines Group (AAL)

American Airlines (AAL) will report its second quarter earnings, with the report coming shortly after a profit miss from peer Delta Air Lines (DAL) prompted selling across the industry. Meanwhile, the recent June CPI report reflected slight declines in airfares, a key concern cited by the US Travel Association in regards to consumer travel demand.

  • Consensus EPS Estimates: 0.75
  • Consensus Revenue Estimates: 13.40B
  • Earnings Insight: American Airlines has exceeded EPS estimates in 8 straight quarters, missing revenue estimates only once in that span.

AT&T (T)

Prior to the market open on Thursday, the world’s largest telecom company will report its second quarter earnings results. The stock is a rare S&P component remaining in the green in 2022, gaining steadily since the spin-off of its streaming business to Warner Brothers Discovery (WBD) to rise by double digits since the close of the deal. As of its most recent 10-Q filing, the company touted a total long term debt of over $180B.

  • Consensus EPS Estimates: $0.62
  • Consensus Revenue Estimates: $29.47B
  • Earnings Insight: AT&T has surpassed EPS estimates in 7 of the past 8 quarters, while revenue figures have exceeded the Wall Street consensus in 5 of those quarters.

Also reporting: Tractor Supply Co. (TSCO), Philip Morris (PM), Mattel (MAT), Domino’s Pizza (DPZ), Danaher (DHR), DR Horton (DHI), Union Pacific (UNP), and AutoNation (AN)

Friday, July 22:

Schlumberger (SLB)

The largest oil field services company in the world will report earnings to close the week, following earlier reports from peers Baker Hughes (BKR) and Halliburton (HAL). After notching an over 50% gain in the first five-and-a-half months of the year, shares of “the slob” have fallen about 37% from their June peak. The volatility has been tied to oil prices, which have seen substantial swings lately, plummeting over 20% from its June peak.

  • Consensus EPS Estimates: $0.40
  • Consensus Revenue Estimates: $6.28B
  • Earnings Insight: Schlumberger has beaten EPS estimates in 8 consecutive quarters. It has missed revenue estimates three times over that same span of time.

Twitter (TWTR)

Before the market opens on Friday, Twitter (TWTR) will offer its first earnings update since opening legal proceedings against would-be acquirer Elon Musk. Amid the legal wrangling, shares have trended about $20 below the proposed takeover price.

Aside from M&A issues, the social media giant has pursued significant layoffs, part of a cost-cutting effort by the social media giant. In early July, the Wall Street Journal reported the company was laying off about 100 employees. Meanwhile, headed into the earnings report, analyst Geoff Considine says the consensus of options traders "favors positive outcomes" for TWTR.

  • Consensus EPS Estimates: $0.14
  • Consensus Revenue Estimates: $1.34B
  • Earnings Insight: Twitter has beaten EPS estimates in 5 of the past 8 quarters, marking the same record for revenue in that period.

Verizon (VZ)

Reporting after AT&T (T) the day before, Verizon (VZ) will round out the busy earnings week by reporting its second quarter earnings in Friday’s premarket hours. Shortly before the earnings report, Verizon (VZ) initiated a price hike of $6 to $12 on its metered-data plans and has increased a portion of its monthly fees on wireless plans. The price hike follows industry trends in terms of price hikes amid inflationary pressures.

  • Consensus EPS Estimates: $1.33
  • Consensus Revenue Estimates: $33.79B
  • Earnings Insight: Verizon has beaten EPS estimates in 8 straight quarters, exceeding revenue estimates in 6 of those quarters.

Also Reporting: American Express (AXP) and Cleveland Cliffs (CLF)

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