Earnings season begins in earnest this week, with some of the largest U.S. banks set to report. More than 40 S&P 500 companies are scheduled to report second-quarter results, including Goldman Sachs, Morgan Stanley and Bank of America. Netflix will also release its latest numbers. Expectations for this reporting period are high. FactSet data shows analysts expect S&P 500 earnings to rise 8.8% in the second quarter compared to the year-ago period. If so, that would mark the strongest earnings growth since the first quarter of 2022 — when earnings rose 9.4%. Check out CNBC Pro’s breakdown of what’s expected from this week’s key reports. All times are ET. Goldman Sachs is scheduled to report earnings before the bell. Management is scheduled to hold a call at 9:30 a.m. ET. Q4: GS beats Q1 estimates on strong revenue from trading and investment banking. Current quarter: Analysts polled by LSEG expect earnings per share to more than double from the year-ago period. What to watch from CNBC banking correspondent Hyo Sohn: “Goldman Sachs will report on Monday, and expectations are high for CEO David Solomon because of the expected rebound in Wall Street activity, including merger charges. Watch for any cuts related to commercial real estate.” What history shows: Goldman has beaten earnings expectations for the past three quarters, according to Bespoke Investment Group. Morgan Stanley is scheduled to report earnings premarket on Tuesday, followed by a conference call at 9:30 a.m. Last quarter: MS beat estimates on strength in wealth management, trading and investment banking. This quarter: Morgan Stanley is expected to report earnings per share growth of more than 30%, according to LSEG. What CNBC banking reporter Hyo Soon is watching: “Morgan Stanley has two winds in its favor: a rebound in investment banking fees and high stock values that are swelling assets in its wealth management division, giving new CEO Ted Beck a boost.” What history shows: The bank’s stock has risen on four of the last six earnings days, according to Bespoke data. Bank of America is scheduled to report earnings before the opening bell. Leadership is scheduled to hold a call at 8:30 a.m. Last quarter: Interest income and investment banking revenue pushed BAC’s earnings above expectations. This quarter: Earnings per share are expected to fall about 10% year over year, according to LSEG data. What CNBC banking reporter Hyo Soon is watching: “At Bank of America, investors are mostly concerned about net interest income performance in a time of rising interest rates; the company has managed to maintain guidance despite concerns about rising funding costs; let’s see if that trend continues.” What history shows: Bank of America averages a 0.8% decline on earnings days, according to Bespoke. However, the company beats estimates 79% of the time. United Airlines is scheduled to report earnings after the closing bell on Wednesday. A call is expected at 10:30 a.m. the following day. Last quarter: United Airlines rose on strong earnings expectations and cut its 2024 fleet plan. This quarter: The airline’s earnings are expected to fall 20%, according to LSEG. What CNBC Airlines Correspondent Leslie Joseph is watching: “United and Delta have pulled away from the pack, delivering better margins. Can they keep up? Travel demand has broken new records this year, but high costs have weighed on the sector. United is one of the airlines best positioned to benefit from strong demand for international travel. Investors will be looking for clues about bookings outside of the travel peak in July and the rest of the year. Executives are also likely to be asked about expansion plans as well as ongoing aircraft delivery delays from Boeing and Airbus that have hampered capacity. Capacity constraints aren’t necessarily a bad thing; the sector can put pressure on prices as flights are added, but new aircraft are more fuel-efficient and can cut costs for airlines. United has yet to strike a new labor agreement with flight attendants and the airline will face questions about any additional costs from that deal.” What history shows: Custom data shows United beats earnings expectations 71% of the time. Still, the stock averages a 0.54% decline on earnings days. Netflix is scheduled to report earnings after the bell on Thursday, with a conference call at 4:45 p.m. ET. Last quarter: NFLX beat earnings estimates on a 16% jump in subscribers. This quarter: The streaming giant is expected to report earnings per share growth of more than 40%, according to LSEG. What CNBC is watching: Some analysts are cautious ahead of Netflix’s earnings report. “Based on Sensor Tower data, both in the U.S. and globally, Netflix saw a decline in app downloads during the quarter,” Goldman’s Eric Sheridan, who has a neutral rating on the stock, noted last week, which could signal some weakness for the company. “We expect NFLX to report net additions modestly ahead of sell-side estimates but modestly below investor expectations,” Citi’s Jason Bazinet, who has a neutral rating on the stock, said Thursday. “Investor focus will likely remain on the company’s advertising segment, sports content strategy and capital allocation.” What history shows: According to Bespoke, Netflix beats earnings per share estimates 81% of the time. However, the stock has declined on three of the last five earnings days.
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Your Guide to the First Full Week of the Q2 Financial Reporting Season
