Summary: As the third-quarter earnings season enters a busy week, major companies like Netflix and Goldman Sachs are set to report their financial results. So far, the season has seen a solid start, with JP Morgan Chase, Citigroup, and Wells Fargo surpassing expectations. Despite expectations of a decline in overall earnings for the S&P 500, 81% of companies that have reported have exceeded estimates. This week, 54 S&P 500 members will release their reports, including investment banking giants Goldman Sachs and Morgan Stanley, along with streaming giant Netflix.
The third-quarter earnings season is set to gain momentum as companies like Netflix and Goldman Sachs prepare to release their financial reports. So far, the season has had a promising start, with several major banks, including JP Morgan Chase, Citigroup, and Wells Fargo, exceeding expectations with their quarterly results. According to FactSet, out of the companies that have reported, 81% have managed to beat estimates.
In spite of this positive trend, expectations for the overall earnings season are not very high. FactSet data reveals that analysts are anticipating a 0.3% year-over-year drop in earnings for the S&P 500, which would mark the fourth consecutive quarter of declining profits for the index.
This week, 54 S&P 500 members are scheduled to report their financial results, and this includes some major players in the financial and entertainment industries. Investment banking giants Goldman Sachs and Morgan Stanley are among the companies providing insights into their performance, as well as streaming service provider Netflix.
As the earnings reports are released, investors will closely analyze the financial performance of these companies. Bank of America, which reports on Tuesday, has struggled this year with its shares dropping by more than 19%. However, UBS analyst Erika Najarian believes that improvements for the banking giant will be evident in their upcoming report.
Another notable company releasing its earnings is Johnson & Johnson. J&J has a strong track record of exceeding analyst expectations, with a 95% success rate. The company’s last earnings miss occurred in 2003. Goldman Sachs will also be reporting its earnings this week, with expectations of a more than 30% drop in year-over-year earnings. The company has warned that its results will be impacted by the deal to offload GreenSky and its decision to scale back efforts in the retail banking space.
United Airlines is another company to watch as it reveals its earnings. Airlines are facing challenges, including seasonal booking patterns and rising costs, and investors will be interested in how United Airlines will navigate these obstacles. Finally, streaming giant Netflix is set to report its earnings after market close. After a recent decline in shares, investors will pay close attention to the company’s ability to maintain viewing momentum and its plans for future growth, including its ad-supported subscription tier.
Overall, as the third-quarter earnings season continues, investors will closely scrutinize the financial performance of major companies such as Netflix and Goldman Sachs, as well as other industry leaders in sectors like banking and airlines.
Tags: earnings season, financial reports, Netflix, Goldman Sachs, S&P 500, banking industry, Johnson & Johnson, United Airlines, streaming services