More than 100 companies slated to report this week
It’s heating up. More than 100 S & P 500 companies are slated to post third-quarter earnings. Among them are Tesla, General Motors and Boeing. So far, the reporting period is off to a strong start. More than 70 S & P 500 names have posted their numbers, with 75% beating analyst earnings expectations. That includes Netflix, which reported an earnings beat on Thursday that sent the stock up 11% — its biggest one-day gain of the year. Tuesday General Motors is set to report earnings before the bell, followed by a conference call at 8:30 a.m. Last quarter: GM shares fell despite the release of better-than-expected results . This quarter: Analysts expect slight year-over-year earnings growth for the auto giant, LSEG data shows. What CNBC auto reporter Michael Wayland is watching: “Investors expect a pretty straight-forward, positive third quarter for the Detroit automaker, which has consistently outperformed Wall Street’s expectations under GM CEO Mary Barra. The quarterly report comes just two weeks after a GM investor day in which the company indicated its earnings strength is expected to continue into next year. Topics of interest for investors that were not addressed earlier this month include GM’s funding plans for its embattled Cruise autonomous vehicle unit, China restructuring and any updates regarding its near-term electric vehicle sales and plans.” What history shows: General Motors has topped earnings estimates for eight straight quarters, Bespoke Investment Group data shows. However, shares have declined after the release of half of those reports. Wednesday Coca-Cola is set to report earnings in the premarket, with management holding a call at 8:30 a.m. Last quarter: KO topped earnings expectations and raised its full-year outlook . This quarter: The beverage giant is expected to report flat earnings from the year-earlier period, LSEG data shows. What to watch: UBS analyst Peter Grom thinks the focus will be on the fourth-quarter guidance and early 2025 commentary. “Even though KO has a history of raising both organic revenue and comparable currency-neutral EPS growth post 3Q EPS … we now believe that the volatile external environment has called into question whether the company will follow this pattern. While our conversations would suggest some still see room for upside, we believe the base case expectation is for the company to remove the low end of the range rather than a meaningful move higher,” he said in a Wednesday note. The analyst has a buy rating on the stock. What history shows: Coca-Cola has beaten analyst earnings expectations 73% of the time, Bespoke data shows. However, shares only average a 0.1% gain on earnings day. Boeing is set to report earnings before the open. A call with management is slated for 10:30 a.m. Last quarter: BA posted a bigger-than-forecast loss and said it expects to burn cash again in Q3 . This quarter: Revenue is expected to be little changed year over year for the aerospace giant, according to LSEG. What CNBC airlines reporter Leslie Josephs is watching: “New CEO Kelly Ortberg will face investors anxious for details during his first earnings call since he took the helm in August. With an ongoing cash-bleed, the manufacturer on Oct. 11 already gave investors a kitchen-sink update: A cut of 10% of its workforce, about $5 billion in charges on its defense and commercial units, a deep $9.97 per share GAAP loss, another year delay to the 777X and the end to the 767 commercial program when orders are fulfilled in 2027. Now, Ortberg is under pressure to update investors on the company’s efforts to raise debt and/or sell shares to improve liquidity. Boeing and its machinists’ union reached a new contract proposal Saturday , which could potentially end a work stoppage that’s lasted more than a month. Investors will also want to know where airplane deliveries from here, including Boeing’s 737 Max cash cow. But it will also be about the bigger picture: what are the ‘core’ businesses Ortberg wants to focus the company on and will that mean shedding some existing projects.” What history shows: Boeing averages a 0.5% gain on earnings day, according to Bespoke. Tesla is set to report earnings after the close. Management is slated to hold a conference call at 5:30 p.m. Last quarter: TSLA reported a 7% drop in auto revenue as earnings fell short of estimates. This quarter: Analysts see the electric car maker’s earnings falling more than 10% year over year, per LSEG. What to watch: Barclays analyst Dan Levy thinks Tesla earnings will beat expectations. However, he also said last week that “there are outstanding questions on the volume outlook and path to margin recovery, and we also question the path to unlocking value from Tesla’s emphasis on AV/AI-driven growth.” Levy has an equal weight rating on the stock. What history shows: Tesla has beaten earnings expectations 61% of the time, according to Bespoke. However, shares have fallen in six of the last eight earnings days. Thursday UPS is set to report earnings in the premarket, followed by a conference call at 8:30 a.m. ET. Last quarter: UPS shares fell 12% for their worst day on record . This quarter: The delivery giant is expected to post slight earnings and revenue growth from the year-earlier period, according to LSEG. What CNBC is watching: UPS shares are down more than 13% year to date as the company loses ground to Amazon Logistics and Walmart. Citi, however, thinks the company is “positioned to benefit from the end of the freight recession and start of the next upcycle, driving more profitable volumes,” according to a note last week. Will this week’s report begin reflecting that trend? What history shows: UPS has fallen in five of the last six earnings days, per Bespoke.
