Earnings season starts to pick up steam going into mid-October, with household names like Tesla Inc. (NASDAQ:TSLA), Netflix (NASDAQ:NFLX) and AT&T (NYSE:T) on the list of companies announcing their quarterly results.
The busy calendar also features a wide variety of sectors, from healthcare to transportation to semiconductors to global banks. Specifically, investors will receive updates from Johnson & Johnson (NYSE:JNJ), Abbott Laboratories (ABT), Union Pacific (UNP), CSX Corp. (CSX), American Airlines (AAL), Lam Research (LRCX), ASML Holding (ASML), Goldman Sachs (GS), Bank of America (BAC), Procter & Gamble (PG) and Philip Morris (PM), among many others.
Below is a curated list of earnings reports due in for the week of October 17 to 21:
Monday, October 17
Bank of America (BAC)
Following earnings reports from JPMorgan (JPM), Morgan Stanley (MS), Wells Fargo (WFC), and Citigroup (C) in the previous week prior, Bank of America (BAC) will continue the flood of big-bank earnings reports prior to Monday’s market open. Shares of the Charlotte-based bank have fallen over 30% in 2022, in line with many of its peers.
Multiple inopportune debt deals hang over the report, with reports from Bloomberg and the Wall Street Journal indicating the bank could lose hundreds of millions from its financing of Elon Musk’s Twitter takeover and Citrix Systems leveraged buyout.
- Consensus EPS Estimates: $0.78
- Consensus Revenue Estimates: $23.48B
- Earnings Insight: Bank of America has exceeded EPS estimates in 7 of the past 8 quarters, beating revenue expectations in 3 of those reports.
Tuesday, October 18
Johnson & Johnson (JNJ)
Prior to Tuesday’s market open, Johnson & Johnson (JNJ) will present its third quarter earnings report. In the 90 days ahead of the quarterly report, analysts have revised EPS and revenue estimates down 14 and 13 times, respectively. About a month prior to the report, the company reaffirmed its full-year outlook and authorized a $5B buyback program.
The New Jersey-based healthcare company has also seen positive results from its ulcerative colitis treatment trials.
- Consensus EPS Estimates: $2.52
- Consensus Revenue Estimates: $23.50B
- Earnings Insight: Johnson & Johnson (JNJ) has beaten EPS estimates in 8 straight quarters, rising above revenue expectations in 5 of those quarters.
Lockheed Martin (LMT)
Defense sector stalwart Lockheed Martin (LMT) is due to offer investors a quarterly update prior to the market open on Tuesday. Amid rising geopolitical turmoil, including the ongoing Russian invasion of Ukraine, the stock has significantly outperformed the broader market.
This has come as the company has received a number of sizable contracts in 2022, including a $5.1B naval air systems contract and $350M Navy modification contract. However, shortly before the quarterly report, Credit Suisse downgraded the stock, based on the US Defense Department’s adoption of a “modular open systems approach” that emphasizes software and hardware upgrades rather than replacements.
- Consensus EPS Estimates: $6.73
- Consensus Revenue Estimates: $16.69B
- Earnings Insight: Lockheed has risen above EPS estimates in 5 of the past 8 quarters, beating revenue expectations in 4 of those reports.
After the market close on Tuesday, Netflix (NFLX) will offer its quarterly earnings presentation. Shares of the video streaming leader have cratered in 2022, falling over 60%. The stock was dragged down by severe earnings disappointments earlier in the year.
In particular, steep subscriber losses in the first quarter sent the stock spiraling nearly 40% downward on the day after the report. Despite revising EPS estimates down 29 times and revenue down 36 times, analysts retain a consensus “Buy” rating on the stock, according to Seeking Alpha surveys. For example, a rollout of ad-supported streaming business is viewed positively by J.P. Morgan as the firm forecasts $2.7B in revenue from the business by 2026.
- Consensus EPS Estimates: $2.17
- Consensus Revenue Estimates: $7.85B
- Earnings Insight: Netflix has risen above EPS estimates in 5 of the past 8 quarters while besting revenue expectations in 6 of those reports.
Wednesday, October 19
Tesla Inc. (TSLA)
In likely the most closely watched report of the week, Tesla (TSLA) will update investors on its third quarter performance after the market close on Wednesday. The automaker has reported a record number of sales in China during the month of September, but fell short of overall Q3 delivery expectations.
An unveiling of a humanoid robot in early October also failed to rouse the stock, with shares dropping about 17% since the start of the month. Tesla (TSLA) stock has declined about 45% in 2022 amid a myriad of concerns on macroeconomics, trade tensions and Elon Musk’s pursuit of Twitter (TWTR). Indeed, CEO Elon Musk’s comments on the deal have added significant noise to the TSLA report. Meanwhile, according to Twitter, the negotiations over the takeover have attracted a federal investigation of the executive.
Nonetheless, the consensus rating on Wall Street remains a “Buy” on the stock with an average price target of $302.76 reflected in Seeking Alpha’s analyst survey.
“In a nutshell, this quarter was nothing to write home about and the Street will be disappointed by the softer delivery number in 3Q,” Wedbush analyst Dan Ives recently told clients. “That said, we view this more of a logistical speed bump rather than the start of a softer delivery trajectory into 4Q/2023 and remain bullish on the Tesla story."
Cathie Wood also showcased her faith in the company, purchasing about 13K shares of the automaker after its post delivery print selloff. Elsewhere, the EV company is set to deliver its first Tesla semi trucks to Pepsi in December.
- Consensus EPS Estimates: $1.03
- Consensus Revenue Estimates: $22.16B
- Earnings Insight: Tesla has exceeded revenue expectations in 8 straight quarters, missing EPS estimates only once in that span.
Abbott Laboratories (ABT)
Following Johnson & Johnson’s report on the prior day, Abbott Laboratories (ABT) will add to healthcare focused companies reporting during the week on Wednesday. Unlike Johnson & Johnson (JNJ), the stock has underperformed the market in 2022, falling over 26%.
Towards the close of the third quarter, the Biden administration signaled its plan to purchase more than 100M additional at-home rapid COVID tests from manufacturers, including Abbott. Additionally, the company’s monkeypox test was given emergency authorization. Ahead of the report, analysts have revised EPS and revenue estimates upward 3 and 7 times, respectively.
- Consensus EPS Estimates: $0.94
- Consensus Revenue Estimates: $9.64B
- Earnings Insight: Abbott Laboratories has exceeded EPS estimates in 8 straight quarters, missing revenue expectations only once in that span.
Thursday, October 20
American Airlines (AAL)
American Airlines (AAL) is due to report its third quarter earnings prior to the market open on Thursday. After touching a 52-week low on October 3, shares of the air carrier have rebounded about 10% since that point. Ahead of the report, the airline lifted its revenue guidance for the full year, helping the stock rise alongside a strong profit read from key peer Delta Airlines, which announced its earnings release on October 13.
- Consensus EPS Estimates: $0.50
- Consensus Revenue Estimates: $13.46B
- Earnings Insight: American Airlines (AAL) has exceeded expectations for 8 straight quarters, besting revenue expectations in all but one of those reports.
AT&T (T) is due to update investors on its quarterly results prior to the market open on Thursday. Shares of the communications giant have significantly underperformed the market on a 5-year basis. However, lately, T has actually held up well compared to the broader averages, slightly outperforming the S&P in 2022.
Ahead of the results, AT&T was awarded a $119M networks deal with Customs and Border Protection and maintained its sizable dividend. According to a survey of 31 analysts in the past 90 days, a Hold rating is the consensus on the Street.
- Consensus EPS Estimates: $0.61
- Consensus Revenue Estimates: $29.86B
- Earnings Insight: AT&T has beaten EPS estimates in 7 of the past 8 quarters, exceeding revenue expectations in 6 of those reports.
Union Pacific (UNP)
Railroad operator Union Pacific (UNP) reports its third quarter earnings alongside sector peer CSX Corp. (CSX) in Thursday’s premarket hours. Shares of the Omaha-based railroad have fallen essentially in-line with the S&P in 2022, accelerating to the downside since June as recession risks have risen and rail traffic has fallen.
Ahead of the results, UBS analyst Thomas Wadewitz advised clients that fuel surcharges could aid the operator, with the bank’s estimates projecting a 3Q operating income tailwind y/y ranging from 15% to 18% for Union Pacific. The railroad continues to deal with a union battle after the Brotherhood of Maintenance of Way Employees Division union rejected a deal with the major railroads on Monday.
- Consensus EPS Estimates: $3.07
- Consensus Revenue Estimates: $6.41B
- Earnings Insight: Union Pacific has beaten EPS and revenue estimates in 6 of the past 8 quarters.
Friday, October 21
Schlumberger (SLB), the world’s largest oil field services company, will round out a busy earnings week in premarket hours on Friday. In line with much of the energy sector, shares of “the slob” have surged about 40% year to date and significantly outperformed the overall market.
Ahead of its latest report, analysts have become increasingly optimistic and revised EPS and revenue estimates upward 18 and 14 times, respectively. The stock has risen sharply as of late due to the surprise announcement of yet another OPEC production cut. Elsewhere, the Texas-based firm is said to be weighing the sale of its valves business for about $800M.
- Consensus EPS Estimates: $0.55
- Consensus Revenue Estimates: $7.10B
- Earnings Insight: Schlumberger has posted better than expected EPS figures in 8 straight quarters, missing revenue expectations only twice in that span.
American Express (AXP)
American Express (AXP) is also due to post quarterly earnings on Friday. The credit card company has invested heavily in technology in 2022, hiring thousands of new employees to update the company’s efforts. While the stock has outperformed the market in 2022, warnings of credit card delinquencies flagged by TransUnion have raised concern for the company. Indeed, shortly before the report, Citi analyst downgraded American Express due to recession risks that raise delinquency issues and also stand to curb consumer spending.
"While the recession is projected to be mild, the impact to our EPS can be rather large as we are coming off of record low credit losses and are now forecasting slightly higher than normal credit losses in 2024," Cyganovich wrote in a note to clients on October 14.
- Consensus EPS Estimates: $2.42
- Consensus Revenue Estimates: $13.58B
- Earnings Insight: American Express has beaten revenue and EPS estimates in 7 of the past 8 quarters.