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Upcoming Earnings Reports to Watch: NFLX, IBM, UAL, PYPL

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Thanks to the recent announcements from the big financial firms, Q3 earnings season is officially underway. Next week, the report season will really heat up as several of our most popular consumer brands will announce their latest quarterly results.

In fact, 56 companies in the S&P 500 will release earnings reports next week, making it the first busy stretch of what should be an integral wave of Q3 results. Total Q3 earnings for the S&P 500 are expected to be up 1.2% year-over-year, which is on track to be the slowest period this year. Still, investors can expect a plethora of great reports this season, and we at Zacks will be here to cover all of them.

For more on what investors should expect from Q3 earnings, check out our exclusive Earnings Trends report. This full report includes a variety of key historical results, as well as estimates for the current and upcoming periods.

And as earnings season gets underway, investors should also 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 October 16.

1.       Netflix (NFLX - Free Report)

Video streaming behemoth Netflix will report its third-quarter results after the market closes on October 16. The company is coming off a rare earnings miss in Q2, but shares are up more than 58% year-to-date, and the earnings and revenue growth picture is still exciting. NFLX is currently a Zacks Rank #2 (Buy).

Based on our latest consensus estimates, we expect Netflix to report earnings of 32 cents per share and revenues of $2.97 billion. These results would represent year-over-year growth of 165% and 30%, respectively. Management has also projected 0.75 million domestic subscriber adds and 3.65 million international adds in the quarter. Investors should keep a close eye on the company’s international margins as it looks to operate more efficiently overseas.


2.       IBM (IBM - Free Report)

IT services giant IBM is slated to release its third-quarter earnings report after the closing bell on October 17. IBM’s transition away from a hardware focus has led to disappointing revenue results over the past few years, but growth in cloud, mobile, and security products could fuel a turnaround. Still, shares are down more than 11% on the year, and the stock is sporting a Zacks Rank #3 (Hold).

According to our latest consensus estimates, IBM is projected to post earnings of $3.28 per share and revenues of $18.67 billion, which would represent year-over-year slumps of 0.3% and 3%, respectively. Management has warned that seasonality concerns will hurt revenues, but the company’s Mainframe z14 product and services contracts should pitch in more.


3.       United Continental Holdings (UAL - Free Report)

Plagued by public relations nightmares and damage from natural disasters, United is heading into its report date like a wounded bird. The company will announce its full third-quarter results after the market closes on October 18, but this Zacks Rank #5 (Strong Sell) has already warned that Q3 was noticeably rough.

Our current consensus estimates are calling for earnings of $1.87 per share and revenues of $9.84 billion. These figures would represent year-over-year drops of 40% and 0.75%, respectively. Houston is United’s second-largest hub, and Hurricane Harvey caused the company significant headwinds. Investors will want to hear how management plans on recovering from this short-term problem and preparing for a strong future.


4.       PayPal (PYPL - Free Report)

Digital payments pioneer PayPal will report its third-quarter earnings results after the bell on October 19. Rising demand for mobile payments solutions has helped PayPal soar more than 67% this year, and now the company will hope to continue this strong momentum with another great report.

Based on our latest consensus estimates, we expect to see the company report earnings of 44 cents per share and revenues of $3.17 billion this quarter, which would represent year-over-year growth of 25% and 19%, respectively. Investors should also pay attention to the results of PayPal’s Venmo unit and whether or not the company’s strategic partnerships with Visa and Mastercard have been paying off.


For an in-depth preview of next week’s biggest earnings stories, check out the latest episode of the Zacks Friday Finish Line podcast:

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

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