The upcoming earnings season is set to kick off with some major U.S. banks and companies scheduled to report their second-quarter results. Among these companies are industry giants such as Goldman Sachs, Morgan Stanley, Bank of America, and Netflix. Expectations for this reporting period are running high, with analysts predicting an 8.8% increase in S&P 500 earnings compared to the same period last year. This growth, if realized, would mark the strongest earnings expansion since the first quarter of 2022.
Each company’s performance will be closely scrutinized, with investors and analysts eager to see how they have fared in the current economic climate. Here is a breakdown of what to expect from some of the key reports:
– Goldman Sachs is expected to report before the bell, with a conference call scheduled for 9:30 a.m.
– Analysts are predicting that earnings per share will have more than doubled from the same period last year due to a rebound in Wall Street activity.
– Investors will be keeping a close eye on potential writedowns tied to commercial real estate, as well as CEO David Solomon’s performance in meeting high expectations.
– Morgan Stanley is set to report in the premarket, followed by a conference call at 9:30 a.m.
– The company is expected to post earnings per share growth of over 30%, driven by a rebound in investment banking fees and high stock values in its wealth management division.
– New CEO Ted Pick is likely to benefit from these positive factors.
Bank of America
– Bank of America will announce its earnings before the opening bell, with a call scheduled for 8:30 a.m.
– While interest income and investment banking revenue led to an earnings beat last quarter, this quarter’s earnings per share are expected to have dropped by nearly 10% year-on-year.
– Investors will be focused on how the company manages net interest income in a high-rate environment and whether it can uphold its guidance amid rising funding costs.
– United Airlines is set to release its earnings after the closing bell, with a call expected the following day at 10:30 a.m.
– The airline is forecasted to experience a 20% decline in earnings, despite strong performance in earlier quarters.
– Investors will be paying close attention to the impact of rising travel demand, higher costs, aircraft delivery delays, labor agreements, and expansion plans on the company’s financial outlook.
– Netflix is scheduled to report earnings after the bell, with a conference call set for 4:45 p.m. ET.
– Analysts anticipate earnings per share growth of over 40%, following a strong quarter with a 16% increase in subscribers.
– However, some analysts have expressed caution, citing a decline in app downloads and the need to monitor the company’s ad-tier, sports content strategy, and capital allocation.
As the earnings season unfolds, investors will be closely watching these key reports to gauge the financial health and performance of these companies. While analysts have high expectations for many of these firms, past performance does not always guarantee future success. It will be crucial for investors to carefully analyze the data and management commentary provided in these reports to make informed decisions about their investment strategies.