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Upcoming Earnings Reports to Watch: DAL, JPM, WFC

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The Q4 earnings season is starting to get underway, with nearly 20 members of the S&P 500 already releasing their latest results. In the coming weeks, we will see reports from the world’s biggest and most relevant companies, meaning that investors need to be prepared for the ensuing movement that is likely to occur throughout the market.

According to the latest report from Sheraz Mian, the head of the Zacks Equity Research department and an acknowledged earnings expert, earnings growth is expected to be positive for 13 of the 16 Zacks sectors—and growth rates are projected to hit the double digits for our Energy, Technology, Construction, Industrial Products, Basic Materials, and Automotive groups.

Meanwhile, the revisions trend for Q4 earnings estimates has been favorable compared to recent quarters. Total earnings growth is now expected to touch 8.8%, up from a projected 8.4% just two months ago.

As we approach the start of the busy season for Q4 earnings reports, investors should remember that they can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.

Today, we’ve made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected the biggest reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of January 8.

1.       Delta Air Lines (DAL - Free Report)

Domestic carrier giant Delta Air Lines is set to report its latest quarterly results before the market opens on January 11. Shares of the company have surged about 5% over the last four weeks, and the stock carries a Zacks Rank #3 (Hold) into its report date. Nevertheless, Delta warned investors about a decrease in December traffic earlier this week.

Based on our consensus estimates, Delta is expected to report earnings of 90 cents per share and revenues of $10.17 billion. These results would represent year-over-year growth of 9.8% and 7.5%, respectively. The company has also recently raised its guidance for Q4 costs, thanks in part to a recent severe power outage in the Atlanta airport.

 

2.       JPMorgan Chase (JPM - Free Report)

Banking behemoth JPMorgan Chase is scheduled to release its new quarterly earnings report before the bell on January 12. JPM has move just about 4% higher over the last four weeks, and the stock currently sports a Zacks Rank #3 (Hold). However, due to the new tax laws effect on deferred tax assets and foreign earnings, big banks like JPMorgan have cautioned investors about large one-time fees in the quarter.

According to our latest consensus estimates, JPM is expected to post earnings of $1.69 per share, which represent a slump of about 1.2% year-over-year. Revenues are projected to be $24.99 billion, up about 6.9%. Still, JPMorgan expects to take a roughly $2 billion hit thanks to the aforementioned tax changes (also read: Q4 Bank Earnings Will be Messy & Noisy).

 

3.       Wells Fargo (WFC - Free Report)

Consumer banking giant Wells Fargo is also slated to report its latest quarterly results before the market opens on January 12. Having bounced back from its massive fraudulent account scandal, shares of WFC have gained about 13% over the past 12 weeks and 5% within the past month. The stock is currently a Zacks Rank #3 (Hold).

Based on the latest consensus estimates, Wells Fargo is expected to report earnings of $1.04 per share and revenues of $22.43 billion, which would represent year-over-year growth of 1.0% and 3.9%, respectively. It is also worth noting that Wells Fargo’s focus on domestic consumer banking should protect it from the new one-time tax fees in comparison to its industry peers.

 

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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