The June quarter reporting season is entering its second week, with the focus gradually shifting from banks to technology companies.
The Earnings Season – Thus Far: About 7% of the S&P 500 companies have reported earnings thus far and 60% of these companies reported positive earnings per share surprises, Factset said in its weekly Earnings Insight report. This is below the five-year average of 77%.
The unfolding week will see earnings releases from 73 S&P 500 companies, including seven Dow 30 companies, the report added.
What To Watch For In the Week Of July 18:
- Big banks Goldman Sachs Group, Inc. GS and Bank of America Corporation BAC are scheduled to announce their respective quarterly results on Monday. Goldman will send out the press release at 7:30 a.m. ET and host the earnings call at 9:30 a.m. ET. Goldman’s EPS is expected to be cut in half to $7.25 and revenue is likely to have fallen 29.30% year-over-year to $10.88 billion. Peer BofA will host its earnings call at 8:30 a.m. ET. The company’s EPS may have declined to $0.78 from $1.03 a year ago, but revenue may have increased about 4% to $22.67 billion. Their peers, which reported last week, released mixed quarterly results.
- International Business Machines Corporation IBM kickstarts the tech reporting season, with its earnings due after the market closes on Monday. Analysts expect the EPS to dip to $2.28 from $2.33 in the second quarter of 2021. Revenues are likely to have declined 19% to $15.19 billion.
- Netflix, Inc. NFLX will report its second-quarter results after the market closes on Tuesday. After a massive loss in net subscriber additions in the first quarter, the streaming giant announced several measures to stem the rot. The earnings release and the earnings call scheduled at 6 p.m. ET will provide insights into the progress of the plans. The consensus estimate calls for EPS to remain almost unchanged at $2.96 and revenue to increase 9.50% to $8.04 billion.
- Healthcare giant Johnson & Johnson JNJ is due to report its second-quarter results before the market opens on Tuesday. The earnings call will happen at 8:30 a.m. ET. Analysts, on average, expect the company to report EPS of $2.57, up from $2.48 a year ago and revenue to climb merely 2% to $23.81 billion. Other major pharma companies that are scheduled to report include Novartis AG NVS and Biogen, Inc. BIIB.
- Tesla, Inc. TSLA is scheduled to report its June quarter results after the market closes on Wednesday. The earnings call is set for 5:30 p.m. ET. Tesla‘s deliveries took a hit in the quarter due to the COVID lockdowns in China during the quarter. Expectations are muted, but analysts expect the electric vehicle giant to come roaring back in the remainder of the year. Sales growth is estimated at over 44% to $17.28 billion.
- AT&T, Inc. T and Verizon Communications, Inc. VZ are due to release earnings in the unfolding week. AT&T, a telecom and media conglomerate, will report its quarterly results ahead of the markets open on Thursday. Peer, Verizon, is due to announce its second-quarter results at 7:30 a.m. EST on Friday. The telecommunications company is widely expected to report EPS of $1.33, down from $1.37 a year ago. Topline will likely see a modest growth of 3.10% to $33.75 billion.
- Twitter, Inc. TWTR is scheduled to release its second-quarter earnings at 8 a.m. ET on Friday. The earnings report assumes importance because of the stalemate in the taking private deal by Elon Musk. Investors may focus on the social media platform’s user metrics, given the ongoing discussions concerning the company understating the spam account count. The consensus estimate calls for the company to report second-quarter revenue of $1.32 billion, up 23.80%. The company does not plan to host an earnings call due to the pending acquisition.
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