Exciting Earnings Reports Ahead! 🚀
This year is shaping up to be a pivotal moment as numerous S&P 500 companies prepare to unveil their third-quarter results. Major players like Tesla, General Motors, and Boeing are at the forefront of this earnings season, and the early reports indicate a promising start. So far, over 70 companies in the S&P 500 have disclosed their earnings, with an impressive 75% surpassing analysts’ projections. Netflix, in particular, showcased a remarkable performance, exceeding estimates and resulting in an 11% spike in its stock price — marking its most significant one-day gain of this year.
General Motors: Anticipation Builds for Earnings Report 🚗
Next up is General Motors, which will present its earnings before the market opens on Tuesday, followed by a press briefing at 8:30 a.m. In the previous quarter, GM’s stock saw a downturn despite reporting favorable earnings. However, analysts predict slight year-over-year growth for the automotive giant in this reporting period, according to LSEG data. Key insights from the recent GM investor day suggest that the company’s strong earning trajectory is likely to continue into the upcoming year. Investors are particularly keen to hear about:
- Funding strategies for its troubled Cruise autonomous vehicle division.
- Updates on restructuring efforts in China.
- Progress in electric vehicle sales and strategies.
Historical data reveals that GM has surpassed earnings expectations for the last eight quarters, yet shares have occasionally dipped following announcements. This year, market expectations are high as investors look forward to a positive report from the longstanding automaker.
Coca-Cola: Focus on Future Guidance 🥤
The following day, Coca-Cola will share its earnings results in a premarket session, coinciding with a management call at 8:30 a.m. Previously, the beverage behemoth not only topped analysts’ forecasts but also raised its full-year guidance. For this quarter, projections indicate that Coca-Cola’s earnings may remain flat compared to the same period last year, according to LSEG data.
Analyst Peter Grom from UBS highlights that the emphasis will likely be on the guidance for the fourth quarter and insight into early 2025. While Coca-Cola has a solid history of increasing organic revenue and currency-neutral EPS growth after their third-quarter earnings, uncertainties in the external environment cast doubt on whether this trend will continue. Grom suggests that while there remains potential for upside, it seems more probable for the company to adjust down its lower end of the forecasts.
- Coca-Cola’s track record shows it has exceeded earnings forecasts 73% of the time.
- A historical performance review shows modest average gains of just 0.1% on earnings day.
Boeing: Pressure on New Leadership 🌍
Boeing is scheduled to announce its earnings prior to market opening, with a management call set for 10:30 a.m. After reporting a more considerable loss than anticipated last quarter, and signaling ongoing cash flow issues in Q3, there are high expectations for this report. Meanwhile, analysts anticipate a slight fluctuation in revenue, with no significant changes year over year.
All eyes will be on new CEO Kelly Ortberg as he faces investors for the first time since his appointment in August. There is intense curiosity surrounding Boeing’s financial strategy post a recent announcement of a significant workforce reduction and major costs associated with both defense and commercial sectors. Investors will seek clarity on:
- Updates regarding the company’s liquidity strategies, including debt and share sales.
- The impact of the new contract with the machinists’ union on operational efficiency.
- Future airplane delivery schedules, particularly for the 737 Max.
Boeing’s track record indicates an average gain of 0.5% on earnings day. Investors will look for signs of a turnaround this time around.
Tesla: Anticipating Mixed Results ⚡
After the market concludes, Tesla is set to disclose its earnings while hosting a call at 5:30 p.m. In the prior quarter, the electric vehicle manufacturer faced challenges, reporting a 7% drop in auto revenue and falling short of earnings projections. Analysts predict an even steeper decline, exceeding 10% year-over-year, as suggested by LSEG.
Barclays analyst Dan Levy remains cautiously optimistic, positing that Tesla may exceed expectations again while stressing unresolved questions regarding production volumes and margin recovery. Historical data demonstrates that Tesla has beaten earnings forecasts 61% of the time, although the company’s stock has seen declines on six of the last eight earnings days.
UPS: Analyzing Market Forces 🚚
On Thursday, UPS will present its earnings before the market opens, accompanied by a management call at 8:30 a.m. Last quarter, the company experienced its most significant stock drop of 12%, marking a challenging period. However, this year, analysts expect UPS to showcase slight growth in both earnings and revenue compared to the previous year.
With the stock facing a downturn of over 13% year to date, market watchers will be keen to assess how UPS is positioned to navigate the changing landscape dominated by Amazon Logistics and Walmart. Historical performance analysis indicates that the company has fallen on five of the last six earnings report days.
The outcome of these earnings announcements could significantly influence market sentiment and investor decisions in the coming quarters. As each company reports, the focus will remain on their future trajectories and overall resilience within a competitive landscape.
Sources: [LSEG Data](https://www.lseg.com), [Bespoke Investment Group](https://www.bespokeinvest.com)
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