The earnings season hasn’t exactly thrilled the market so far. However, the upcoming week presents a slew of opportunities to change that. Netflix, Tesla, along with Meta Platforms and Capital One, are set to announce their quarterly results in the days ahead as we dive deeper into the third-quarter earnings season. There aren’t any major economic reports scheduled, which means earnings updates will likely be in the spotlight. The recent reception to last week’s bank earnings suggests there isn’t much room for error. Goldman Sachs, for instance, saw its strong top and bottom-line results met with selling pressure. Meanwhile, others like State Street and Bank of America faced even harsher reactions. It’s not really surprising, though. Early in October, Jim Cramer pointed out that rising bond yields and the Federal Reserve’s inflation-fighting stance added a complex layer to the earnings landscape. Since then, Middle Eastern tensions escalated, two inflation reports for September surprised with their strength, and questions surrounding the sustainability of the AI spending boom emerged. Plus, with midterm elections in a couple of weeks, there’s added uncertainty in the market. So, it seems the challenging backdrop remains unchanged.
Now, let’s focus on what to expect from Capital One, Meta, and a few other notable companies that could influence the sectors we follow.
Capital One Earnings: The report from this credit card issuer comes out on Tuesday night. Following last week’s surprising inflation readings, CEO Richard Fairbank’s insights into spending trends will be particularly important. Last quarter, net interest income fell short due to a narrower-than-expected net interest margin, so we’ll be looking for improvements this time. Net charge-offs—essentially the amount the company anticipates it won’t recover from customers—were on the high side in July, so any better results there would be welcome. If charge-offs improve and there’s a release on loan reserves—money set aside for anticipated bad loans—that might boost confidence in the quality of the loans Capital One has issued. Based on previous bank reports, we anticipate neutral to positive commentary on credit trends. Additionally, Capital One’s operating costs will be scrutinized; heavy investments in the business have dampened earnings in recent quarters, which in turn affected the stock price. That said, with shares trading at under nine times their forward earnings, they may be undervalued. We’re also hoping to see tangible advantages from the Discover acquisition, recognizing that full integration benefits won’t materialize until mid-next year. As of Friday’s estimates from LSEG, Capital One is anticipated to post earnings of $5.50 per share, with revenues of $16.26 billion.
Meta Earnings: The parent company of Facebook and Instagram will report after the market closes on Wednesday. This earnings call is expected to attract attention, especially with CEO Mark Zuckerberg riding high on the success of its AI assistant, Muse. While we expect generally positive commentary on adoption trends, it’ll be interesting to see if management provides concrete figures, particularly regarding daily active users and the distribution between paid and free users. Against this backdrop, we must consider that this enthusiasm may prompt Zuckerberg to continue substantial investments in computing infrastructure. Therefore, insights into AI spending plans—and how they’ll be financed—might temper some of the excitement about Muse as analysts analyze the details. The clarity and justification provided by Zuckerberg and CFO Susan Li regarding these expenses will likely influence how the stock reacts. Will they focus on current monetization trends or outline future revenue potential? Besides Muse, attention will also turn to Meta’s core Family of Apps and how it’s benefiting from advanced AI developments from their Meta Superintelligence Labs. Currently, estimates suggest Meta will report earnings per share of $5.94 with revenues reaching $63.32 billion, according to LSEG as of Friday.
Other Earnings to Watch: Apart from Capital One and Meta, several other earnings reports warrant attention. While it’s daunting to cover every significant name, we’ve grouped some that every investor should keep an eye on.
AI Development: In conjunction with Meta, Lam Research and Texas Instruments will be reporting on Wednesday. Lam Research manufactures the equipment necessary for semiconductor production, providing insight into supply-demand dynamics. Texas Instruments produces semiconductors across various sectors but has a rapidly growing segment focused on power management chips for data centers, which is particularly relevant to us. On Thursday, Western Digital, known for hard drives, will report as well, serving as a bellwether in the broader storage and memory industry related to Club name Micron.
Aerospace and Defense: This sector will see several companies releasing results that may impact Club name Boeing. On Tuesday, RTX, GE Aerospace, and Northrop Grumman are scheduled to report. Northrop’s call might touch upon Boeing’s recent Navy fighter jet contract win, which some analysts thought Northrop would secure. Throughout the week, key Boeing customers, including United Airlines and Southwest Airlines, will also report earnings.
Consumer Spending Insights: We’ll also be listening for updates from airlines regarding consumer health in light of higher gas prices and inflation. Other notable companies reporting include General Motors, Tesla, Netflix, Spotify, Procter & Gamble, and American Express.
Upcoming Earnings Calendar:
Monday, October 19: Before the opening bell: Cleveland-Cliffs (CLF), Fifth Third Bancorp (FITB). After hours: Steel Dynamics (STLD), W.R. Berkley (WRB), Crown Holdings (CCK), Grupo Aeromexico (AERO), Western Alliance Bancorporation (WAL), Zions Bancorporation (ZION).
Tuesday, October 20: Housing starts at 8:30 a.m. ET, pending home sales at 10 a.m. ET. Before the bell: General Motors (GM), RTX (RTX), GE Aerospace (GE), Northrop Grumman (NOC), 3M (MMM), Genuine Parts Company (GPC), Halliburton (HAL), Synchrony Financial (SYF), Ally Financial (ALLY), KeyCorp (KEY), Equifax (EFX), Hasbro (HAS), Valmont Industries (VMI), MSCI (MSCI). After hours: Capital One Financial (COF), United Airlines (UAL), Chubb (CB), Netflix (NFLX), Alaska Air Group (ALK), Intuitive Surgical (ISRG), East West Bancorp (EWBC).
Wednesday, October 21: Before the bell: Elevance Health (ELV), AT&T (T), Abbott Laboratories (ABT), Thermo Fisher Scientific (TMO), Philip Morris International (PM), Lithia Motors (LAD), NextEra Energy (NEE), Danaher (DHR), Northern Trust (NTRS), Moody’s (MCO), CME Group (CME), M/I Homes (MHO). After hours: Meta Platforms (META), Tesla (TSLA), IBM (IBM), SAP (SAP), Molina Healthcare (MOH), Southwest Airlines (LUV), Lam Research (LRCX), Texas Instruments (TXN), Reliance (RS), United Rentals (URI), Kinder Morgan (KMI), CSX (CSX), Waste Connections (WCN), Packaging Corporation of America (PKG), CACI International (CACI), Knight-Swift Transportation (KNX), Sonoco (SON).
Thursday, October 22: Before the bell: Valero Energy (VLO), Procter & Gamble (PG), Lockheed Martin (LMT), American Airlines Group (AAL), CBRE Group (CBRE), Dow (DOW), Union Pacific (UNP), PG&E (PCG), Nokia (NOK), Spotify Technology (SPOT), Honeywell (HON), PulteGroup (PHM), Tractor Supply (TSCO), Norfolk Southern (NSC), Blackstone (BX), Quest Diagnostics (DGX), Huntington Bancshares (HBAN). After hours: Newmont (NEM), Western Digital (WDC), SS&C Technologies (SSNC), Deckers Brands (DECK), Selective Insurance Group (SIGI), Bloom Energy (BE), Boyd Gaming (BYD), Enova International (ENVA).
Friday, October 23: S&P Global Manufacturing and Services PMI at 9:45 a.m. ET, University of Michigan’s consumer sentiment survey at 10 a.m. ET. Before the bell: American Express (AXP), SLB (SLB), Infosys (INFY), Rogers Communications (RCI), Booz Allen Hamilton (BAH).
