Earnings reports could be big catalysts for these stocks.
Third-quarter earnings season is underway, and earnings reports are often critical market-moving catalysts in the stock market. A good or bad earnings report can set the tone for a stock for the next three months, and analyst expectations are fairly high this earnings season. Wall Street analysts project 27.6% earnings growth and 14.9% revenue growth for S&P 500 companies in the third quarter. Companies’ fourth-quarter guidance will also be important as the economy continues to recover from health crisis shutdowns and companies battle rising costs and wages. Here are seven stocks reporting earnings this week.
Johnson & Johnson (ticker: JNJ)
Global health care giant Johnson & Johnson has been in the spotlight in the past two years for its efforts to develop a COVID-19 vaccine, and investors are hoping the successful vaccine rollout will help the company report some big third-quarter earnings numbers on Tuesday. Analysts expect third-quarter earnings per share of $2.35 and revenue of $23.6 billion from Johnson & Johnson. Last quarter, the company reported $2.27 in EPS, beating analyst estimates by 8.3%. Johnson & Johnson’s stock is down around 3% in the past three months since its last earnings report. The company has an average price target of $188.05 among 16 analysts covering the stock, and shares closed at $161.30 on Oct. 15.
Procter & Gamble Co. (PG)
Procter & Gamble is a leading global producer of household and personal care products. Analysts expect fiscal first-quarter EPS of $1.59 on Tuesday. In addition, analysts anticipate $19.8 billion in revenue, up 8.1% from a year ago. Last quarter, Procter & Gamble reported $1.13 in EPS, beating analyst estimates by 4.6%. The stock is up close to 4% since its last earnings report three months ago, and analysts see more gains ahead over the next 12 months. The average price target for PG stock among 20 analysts is $159, which closed at $144.48 on Oct. 15.
Netflix Inc. (NFLX)
Big Tech earnings season kicks off on Tuesday when streaming video giant Netflix reports its third-quarter numbers. Analysts expect $2.57 in EPS and $7.5 billion in revenue, up 18.7% from a year ago. Last quarter, Netflix reported $2.97 in EPS, missing analyst estimates by more than 6%. Subscriber growth will also be critical for Netflix, and management has guided for 3.5 million net paid subscriber additions in the quarter. The stock appears to have some high expectations already priced in at this point. Netflix shares are up around 18% since its last report three months ago and have an average price target of $672.50 among 40 analysts covering the company. Shares closed at $628.29 on Oct. 15.
Verizon Communications Inc. (VZ)
The largest U.S. wireless carrier will report third-quarter earnings on Wednesday. Analysts expect $1.36 in EPS and $33.3 billion in revenue, up 4.4% from a year ago. Last quarter, Verizon reported $1.37 in EPS, beating analyst estimates by 5.4%. The company also reported 275,000 net postpaid phone additions last quarter, another key metric investors will be watching on Wednesday. Verizon shares have struggled so far in 2021, dropping another 5% over the past three months. Still, the average price target is $60 among the 21 analysts covering the stock, which closed at $52.27 on Oct. 15.
Tesla Inc. (TSLA)
Electric vehicle maker Tesla reported a record 241,300 vehicle deliveries in the third quarter. The stock is also up 30% in the past three months, suggesting that high expectations are already priced into the stock ahead of its third-quarter earnings report on Wednesday. Analysts expect Tesla to report quarterly EPS of $1.54 and revenue of $13.7 billion, up 62.1% from a year ago. Last quarter, Tesla reported EPS of $1.45, beating consensus estimates by 54%. The 35 analysts that cover Tesla have an average price target of $764 for the stock, which closed at $843.03 on Oct. 15.
Freeport-McMoRan Inc. (FCX)
Copper prices are up more than 50% in the past year. Shares of copper, gold and molybdenum producer Freeport-McMoRan have been along for the ride, rising more than 19% in the past 3 months. Investors are hoping the bullish momentum will continue when Freeport reports third-quarter earnings on Thursday. Analysts are calling for quarterly EPS of 81 cents and revenue of $6.2 billion. Last quarter, the company reported 77 cents in EPS, beating consensus estimates by 1.3%. Analysts expect that the stock’s momentum will continue. Among 18 analysts covering the company, the stock has an average price target of $43. Shares closed at $38.64 on Oct. 15.
American Airlines Group Inc. (AAL)
It’s been a turbulent couple of years for airline stocks as they attempt to claw their way back to profitability following a crash in global travel demand during the pandemic. Analysts expect another net loss from American Airlines on Thursday, projecting an EPS loss of $1.07 for the third quarter. Fortunately, analysts also project $8.8 billion in revenue, a 175% increase from 2020 pandemic levels. Last quarter, American reported an EPS loss of $1.69, beating analyst estimates by 13.8%. American Airlines shares are up more than 5% in the past three months. The stock has an average price target of $20 among 17 analysts covering the company, and shares closed at $19.98 on Oct. 15.
Here’s when these earnings reports will be released this week:
— Tuesday morning: Johnson & Johnson (JNJ)
— Tuesday morning: Procter & Gamble Co. (PG)
— Tuesday afternoon: Netflix Inc. (NFLX)
— Wednesday morning: Verizon Communications Inc. (VZ)
— Wednesday afternoon: Tesla Inc. (TSLA)
— Thursday morning: Freeport-McMoRan Inc. (FCX)
— Thursday morning: American Airlines Group Inc. (AAL)
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