Earnings season kicks into high gear in mid-July, featuring a wave of releases from some of the world’s most prominent companies. The docket includes major banks, pharmaceutical firms and airlines, as well as tech and telecom giants.
Notable firms stepping into the spotlight include Bank of America (NYSE:BAC), Johnson & Johnson (NYSE:JNJ), Netflix (NASDAQ:NFLX), Taiwan Semiconductor (NYSE:TSM), UnitedHealth (NYSE:UNH), Kinder Morgan (NYSE:KMI), ASML (NASDAQ:ASML), Goldman Sachs (NYSE:GS), Nokia (NOK), Blackstone (BX), Abbott Labs (ABT), Morgan Stanley (MS), American Express (AXP), Schlumberger (SLB), Intuitive Surgical (ISRG), Crown Castle (CCI), United Airlines (UAL), U.S. Bancorp (USB), Alcoa (AA) and Prologis (PLD).
Below is a rundown of major quarterly updates anticipated in the week of July 15–19:
Monday, July 15
Goldman Sachs (GS)
Following a mixed bag of big bank earnings at the end of last week, Goldman Sachs (GS) is set to release its Q2 financial print before the opening bell on Monday. Analysts expect a 172% Y/Y rise in EPS and around 14% growth in revenue.
Wall Street analysts maintain a Buy rating on the stock, which gained about 50% in a span of 12 months. Meanwhile, the Seeking Alpha Quant Rating system sees the stock as a Hold, primarily due to valuation and profitability concerns.
SA contributor Noah’s Arc Capital Management states that despite potential risks such as rising credit defaults, Goldman Sachs’ (GS) focus on high-margin and asset-light revenue sources makes it a strong buy, with room for share expansion. The bank’s robust deal flow and revenue growth in the investment banking sector position it well for future success and earnings growth, the analyst stated.
- Consensus EPS Estimates: $8.40
- Consensus Revenue Estimates: $12.37B
- Earnings Insight: Goldman Sachs has beaten revenue expectations in 6 of the past 8 quarters, missing EPS estimates three times in that span.
Also reporting: BlackRock (BLK), FB Financial Corporation (FBK), CrossFirst Bankshares (CFB), Lexaria Bioscience (LEXX) and more.
Tuesday, July 16
Bank of America Corporation (BAC)
Bank of America (BAC) is due to release its Q2 earnings before the market opens on Tuesday, alongside Morgan Stanley (MS). This comes just days after JPMorgan (JPM), Citigroup (C), BlackRock (BLK) and Wells Fargo (WFC) posted a mixed bag of results.
SA Investing Group Leader Envision Research highlights that Bank of America (BAC) shares have outperformed the market, reflecting strong operational performance and strategic market positioning. The bank is gaining market share in investment banking and capital markets, the analyst said, with expectations for a rebound in dealmaking activities as interest rates decrease.
Wall Street is bullish on the bank, with sell-side analysts giving it a Buy rating. Seeking Alpha’s Quant Rating system assign it a Strong Buy rating.
- Consensus EPS Estimates: $0.80
- Consensus Revenue Estimates: $25.20B
- Earnings Insight: The bank has exceeded EPS expectations in 5 of the past 8 quarters, beating revenue estimates in 6 of thos reports.
Also reporting: UnitedHealth (UNH), Morgan Stanley (MS), The Charles Schwab Corporation (SCHW), The Progressive Corporation (PGR), The PNC Financial Services Group (PNC), América Móvil, S.A.B. de C.V. (AMX), Interactive Brokers Group (IBKR), State Street Corporation (STT), Omnicom Group (OMC), J.B. Hunt Transport Services (JBHT), Pinnacle Financial Partners (PNFP), Hancock Whitney Corporation (HWC), Fulton Financial Corporation (FULT), Mercantile Bank Corporation (MBWM), Great Southern Bancorp (GSBC), Equity Bancshares (EQBK), Aehr Test Systems (AEHR) and more.
Wednesday, July 17
United Airlines (UAL)
United Airlines (UAL) is set to release its Q2 earnings on Wednesday after the market closes. The figures come out after a disappointing Q2 performance from key competitor Delta Air Lines (DAL).
The market remains optimistic about UAL, with Seeking Alpha’s Quant Rating system recommending a Strong Buy. At the same time, Wall Street analysts generally suggest a Buy for the stock.
Seeking Alpha contributor Mountain Valley Value Investments notes that despite challenges, United Airlines (UAL) is focused on growth and profitability with a clear plan for the future. Given its higher margins, lower debt multiple, and positive outlook, the contributor believes that United Airlines shares should not trade at such a discount to its peers.
SA Investing Group Leader Stone Fox Capital believes that United Airlines could begin returning capital to shareholders through share buybacks, signaling confidence in the company’s future, especially while the stock trades at just 4x EPS targets.
- Consensus EPS Estimates: $3.98
- Consensus Revenue Estimates: $15.02B
- Earnings Insight: United Airlines has beaten EPS and revenue estimates in 7 of the past 8 quarters.
Also reporting: Johnson & Johnson (JNJ), Kinder Morgan (KMI), ASML Holding N.V. (ASML), Alcoa (AA), Crown Castle (CCI), U.S. Bancorp (USB), Prologis (PLD), Discover Financial Services (DFS), Synchrony Financial (SYF), Ally Financial (ALLY), Steel Dynamics (STLD), Citizens Financial Group (CFG), SL Green Realty (SLG), Bank OZK (OZK), Equifax (EFX), Martin Midstream Partners L.P. Common Units (MMLP), Synovus Financial (SNV), First Horizon Corporation (FHN), Northern Trust Corporation (NTRS) and more.
Thursday, July 18
Netflix (NFLX)
Streaming giant Netflix (NFLX) is scheduled to report its Q2 financial results on Thursday, after the closing bell.
The stock has surged over 48% in the past 12 months and is up nearly 34% YTD, earning a Buy recommendation from Wall Street analysts. Meanwhile, the Seeking Alpha Quant Rating system maintains a Hold rating on the stock.
SA contributor The Techie reiterates a Buy rating on Netflix, believing that the company’s venture into sports represents a new avenue for growth. The contributor anticipates that Netflix’s focus on engagement as a key metric will positively impact the top line in the second half of FY24. According to The Techie, Netflix’s original content remains its core strength and will drive engagement and subscriber growth in the near term.
- Consensus EPS Estimates: $4.77
- Consensus Revenue Estimates: $9.53B
- Earnings Insight: Netflix has risen above EPS estimates in 6 of the past 8 quarters while exceeding revenue expectations in 50% of those reports.
Also reporting: Nokia (NOK), Taiwan Semiconductor Manufacturing Company Limited (TSM), Abbott Laboratories (ABT), Intuitive Surgical (ISRG), Novartis AG (NVS), Alaska Air Group (ALK), D.R. Horton (DHI), M&T Bank Corporation (MTB), Domino’s Pizza, (DPZ), KeyCorp (KEY), Infosys Limited (INFY), PPG Industries (PPG), Snap-on Incorporated (SNA), Cintas Corporation (CTAS), Marsh & McLennan Companies (MMC), Textron (TXT) and more.
Friday, July 19
Schlumberger (SLB)
Schlumberger (SLB), the world’s largest oilfield service company, is slated to report Q2 results before the market opens on Friday, with analysts anticipating more than 10% Y/Y growth on both EPS and revenue.
The company’s shares have attracted a Strong Buy rating from Wall Street analysts, while Seeking Alpha’s Quant Rating system continues to take a cautious stance with a Hold rating.
SA author Leo Nelissen highlights that Schlumberger’s strategic moves and partnerships, particularly with TotalEnergies, position the company well for long-term growth. The diversification into production chemicals and AI, along with strong international demand, supports Schlumberger’s potential for success. With an attractive valuation, projected EPS growth, and a commitment to shareholder returns, Schlumberger presents a compelling investment opportunity, Nelissen argued.
- Consensus EPS Estimates: $0.83
- Consensus Revenue Estimates: $9.10B
- Earnings Insight: The company has beaten EPS estimates in 8 straight quarters and revenue estimates in 6 of those reports.
Also reporting: Halliburton Company (HAL), American Express Company (AXP), The Travelers Companies (TRV), Huntington Bancshares (HBAN), Regions Financial Corporation (RF), Fifth Third Bancorp (FITB), Comerica (CMA), Wipro Limited (WIT) and more.