Earnings reports could be big catalysts for these stocks.
Third-quarter earnings season is ramping up, and growth expectations remain high as the economy continues to recover from 2020 shutdowns. Investors have already witnessed some big third-quarter earnings hits and misses. A good or bad earnings report can set the tone for a stock for the next three months, particularly if the report includes guidance for the upcoming quarter. Fortunately, earnings season is off to a mostly bullish start. So far, S&P 500 companies are on track to report more than 30% earnings growth and 15.3% revenue growth for the third quarter. Here are seven stocks reporting earnings this week.
Facebook Inc. (ticker: FB)
Facebook was hit by congressional testimony from a whistleblower and a six-hour outage of its major platforms on Oct. 4. Investors are hoping big third-quarter earnings numbers on Monday will help improve the Facebook narrative. The company will also reportedly be announcing a new corporate name as soon as the end of October. Analysts expect third-quarter earnings per share of $3.19 and revenue of $29.6 billion. Last quarter, the company reported $3.61 in EPS, beating analyst estimates by 19.1%. Facebook’s stock is down around 12% in the past three months since its last earnings report. The average price target among 44 analysts covering FB is $424.50. The stock closed at $324.61 on Oct. 22.
Alphabet is hoping to maintain its bullish momentum when it reports earnings on Tuesday afternoon. Analysts expect EPS of $23.73 and $63.5 billion in revenue, up more than 37% from a year ago. Last quarter, Alphabet reported $27.26 in EPS, beating analyst estimates by 41%. The stock is up about 3% since its last earnings report three months ago, and analysts see more gains ahead over the next 12 months. The average price target for GOOGL among 41 analysts covering the stock is $3,200. GOOGL shares closed at $2,751.33 on Oct. 22.
Advanced Micro Devices Inc. (AMD)
Chipmaker Advanced Micro Devices is looking to live up to high expectations when it reports third-quarter numbers on Tuesday afternoon. Analysts expect 66 cents in EPS and $4.1 billion in revenue, up around 60% from a year ago. Last quarter, AMD reported 63 cents in EPS, beating analyst estimates by more than 16%. The market is clearly expecting some big numbers given AMD shares are up more than 30% since its last report three months ago. AMD has an average price target of $117.50 among 32 analysts covering the company. Shares closed at $119.82 on Oct. 22.
Microsoft Corp. (MSFT)
Cloud services and enterprise software specialist Microsoft will report fiscal first-quarter earnings on Tuesday afternoon. Analysts expect $2.08 in EPS and $44 billion in revenue, up 14% from a year ago. Last quarter, Microsoft reported $2.17 in EPS, beating analyst estimates by 13%. The company also reported 30% growth in Intelligent Cloud segment revenue last quarter, another key metric investors will be watching on Tuesday. Microsoft shares have gained more than 7% over the past three months. The average price target among 30 analysts covering the stock is $332. Microsoft shares closed at $309.16 on Oct. 22.
Comcast Corp. (CMCSA)
Shares of media conglomerate Comcast are down 7% in the past three months, suggesting expectations for its third-quarter earnings report on Thursday morning may be fairly low. Analysts expect Comcast to report quarterly EPS of 75 cents and revenue of $29.8 billion. Last quarter, Comcast reported EPS of 84 cents, beating consensus estimates by 27%. Investors will also be watching for an updated subscriber count for Peacock, which had 54 million sign-ups as of July. The 30 analysts that cover Comcast have an average price target of $67.50 for the stock, which closed at $54.22 on Oct. 22.
Amazon.com Inc. (AMZN)
Shares of e-commerce and cloud services leader Amazon have been uncharacteristically weak over the past three months, dropping more than 9%. Analysts are calling for quarterly EPS of $8.90 and revenue of $111.6 billion, up 23% from a year ago. Last quarter, the company reported $15.12 in EPS, beating consensus estimates by 23%. On Thursday, investors will also be closely watching Amazon Web Services revenue, which was up 37% in the second quarter. Among 44 analysts covering the company, Amazon has an average price target of $4,117.50. Shares closed at $3,335.55 on Oct. 22.
Exxon Mobil Corp. (XOM)
After an extremely difficult 2020 that saw crude oil prices briefly drop below $0 for the first time in history, oil prices have come roaring back to multiyear highs in 2021. Analysts are expecting soaring oil prices to fuel third-quarter EPS of $1.56 for oil major Exxon Mobil on Friday. Analysts also project $71.1 billion in revenue, a 59% increase from 2020 pandemic levels. Last quarter, Exxon reported EPS of $1.10, beating analyst estimates by 9%. Exxon shares are up more than 9% in the past three months. The stock has an average price target of $67 among 26 analysts covering the company, and shares closed at $63.12 on Oct. 22.
Earnings reports to watch this week:
— Facebook Inc. (FB)
— Advanced Micro Devices Inc. (AMD)
— Microsoft Corp. (MSFT)
— Comcast Corp. (CMCSA)
— Amazon.com Inc. (AMZN)
— Exxon Mobil Corp. (XOM)
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7 Earnings Reports to Watch This Week originally appeared on usnews.com
