AUDINDesign
Earnings season begins to ramp up next week, with closely followed companies in the financial, consumer and semiconductor spaces all scheduled to update investors on their quarterly performances.
This list of firms set to announce their financial figures include PepsiCo Inc. (NASDAQ:PEP), Taiwan Semiconductor (NYSE:TSM), Delta Air Lines (NYSE:DAL), BlackRock (BLK), UnitedHealth (NYSE:UNH), Morgan Stanley (MS) and Citigroup (C).
Below is a curated list of earnings reports due for the week of October 10 through 14:
Tuesday, October 11
AZZ, Inc. (AZZ)
After a slow start to the week on Monday, industrial solutions provider AZZ, Inc. (AZZ) will highlight the earnings reports in Tuesday’s premarket period. Shares of the Texas-based company have declined about 30% in 2022. The stock rebounded sharply going into August following a first quarter report that came in above expectations on both the top and bottom lines.
Since that August advance, shares have pulled back, giving up most of that post-earnings rally. The stock is now essentially flat with where it was going into the company’s July earnings report.
- Consensus EPS Estimates: $1.38
- Consensus Revenue Estimates: $470.94M
- Earnings Insight: AZZ Inc. (AZZ) has exceeded EPS expectations on 7 of the past 8 quarters, but has only risen above revenue expectations twice in that span.
Also reporting: Applied Blockchain (APLD)
Wednesday, October 12
PepsiCo (PEP)
PepsiCo (PEP) is due to post its third quarter earnings results prior to Wednesday’s market open. Shares of the soft drink giant are down for 2022 but have held up significantly better than the overall market. Meanwhile, the stock remains in the green over a 12-month period.
Morgan Stanley recently told clients it expects the outperformance to continue, touting the stock as a top pick. Despite the resilient performance, the beverage giant is said to be considering staff reductions. The company also cut operations in Russia in September.
- Consensus EPS Estimates: $1.84
- Consensus Revenue Estimates: $20.78B
- Earnings Insight: Pepsi has beaten revenue and EPS estimates in 8 straight quarters.
Also Reporting: Duck Creek Technologies (DCT) and Rocky Mountain Chocolate Factory (RMCF)
Thursday, October 13
Delta Air Lines (DAL)
Delta Air Lines (DAL) will be the first of the major airlines to report earnings for the third quarter, with the report due out in Thursday’s premarket hours. Despite touting strong travel demand in its April earnings report, soaring fuel prices and airfares have raised concerns, prompting a string of downward EPS and revenue revisions in the past 90 days.
Meanwhile, Raymond James told clients shortly before the third quarter report that lowered expectations actually increase their bullishness on Delta. In another upbeat report, DM Martins Research called DAL “a favorite ahead of Q3 earnings.”
- Consensus EPS Estimates: $1.55
- Consensus Revenue Estimates: $13.63B
- Earnings Insight: Delta has exceeded revenue expectations in 7 of the past quarters, beating EPS estimates in half of those reports.
Taiwan Semiconductor (TSM)
Semiconductor sector bellwether Taiwan Semiconductor Manufacturing Company (TSM) is due to post its third quarter results on Thursday. The report comes about a week after the Hsinchu-based company posted downbeat September revenue results and a significant sales warning from its major client Advanced Micro Devices (AMD). In other news, the company is currently eyeing the production of 2nm chips for Apple, according to Digitimes.
- Consensus EPS Estimates: $1.68
- Consensus Revenue Estimates: $19.15B
- Earnings Insight: Taiwan Semiconductor has beaten EPS estimates in 8 straight quarters, missing revenue expectations in only 2 of those reports.
Also reporting: BlackRock (BLK), Fastenal Company (FAST), and Walgreens Boots Alliance (WBA)
Friday, October 14
Financial Heavyweights
Friday will see a large number of major players in the financial space announce their quarterly results. Citigroup (C), Morgan Stanley (MS), Wells Fargo (WFC), JP Morgan (JPM), US Bancorp (USB) and PNC Financial Services (PNC) are all slated to release their financial figures. Overall, financials have been under pressure in 2022, with the Financial Select Sector SPDR ETF (XLF), a fund that tracks the overall sector, dropping about 21% since the end of 2021.
While rising interest rates should theoretically benefit banks, worries about a possible recession have weighed on the group. However, analyst Geoff Considine has taken a bullish view of the recent weakness, saying “a lot of bad news is already priced into financial stocks.”
In terms of individual stocks, Pinxter Analytics identified Morgan Stanley as the best positioned of the financial companies ahead of the earnings announcements.
UnitedHealth Group (UNH)
Winding up the week alongside the host of bank earnings, UnitedHealth Group (UNH) will update investors on its quarterly results prior to Friday’s market open. Shares of the managed healthcare and insurance provider have significantly outperformed the market in 2022, rising about 2% as compared to an over 20% decline for the S&P.
Amid the recent outperformance, analysts have grown increasingly bullish on quarterly earnings prospects, revising EPS estimates upwards 21 times in the past 90 days, per Seeking Alpha data. Also, M&A activity in the healthcare space has been a topic of discussion for UnitedHealth, which completed the takeover of Change Healthcare in early October.
- Consensus EPS Estimates: $5.44
- Consensus Revenue Estimates: $80.54B
- Earnings Insight: UnitedHealth (UNH) has beaten both EPS and revenue estimates in 8 straight quarters.
Also reporting: First Republic Bank (FRC), Coastal Financial (CCB)
