7 Stocks Reporting Earnings The Week Of July 18

  • These major companies will be reporting earnings the week of Jul. 18.
  • Bank of America (BAC): The major U.S. bank will be looking to turn around negative sentiment with its Q2 results.
  • Goldman Sachs (GS): Can the leading investment bank continue to buck the current market downturn?
  • Ally Financial (ALLY): One of Warren Buffett's favorite new stocks reports earnings next week.
  • Netflix (NFLX): Will a new ad-supported subscription tier help turn things around at the streaming giant?
  • International Business Machines (IBM): One of the few technology stocks that is actually up this year.
  • Tesla (TSLA): The Twitter acquisition saga has been hard on the electric vehicle maker.
  • Verizon Communications (VZ): A dividend yield of more than 5% has been attracting weary investors.
earnings - 7 Stocks Reporting Earnings The Week Of July 18

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Earnings season has kicked into high gear with the major U.S. banks reporting earnings over the past week. And the initial results have not been encouraging, with missed expectations across the board. The earnings prints in recent days have helped to push stock markets lower as investor sentiment appears to be turning even more sour than it had already been.

In coming days, the earnings train will roll on with results reported by the last of the big financial institutions at the start of the week, followed by prints from major technology companies in the week’s second half. Investors should brace for more volatility should the earnings picture deteriorate further and corporate America appear to succumb to the many economic headwinds blowing across the country right now.

Here are seven stocks of major companies reporting earnings during the week of Jul. 18.

Ticker Company Price
BAC Bank of America Corporation $30.98
GS The Goldman Sachs Group, Inc. $286.59
ALLY Ally Financial Inc. $33.54
NFLX Netflix, Inc. $176.27
IBM International Business Machines Corporation $139.49
TSLA Tesla, Inc. $720
VZ Verizon Communications Inc. $50.63

Stocks Reporting Earnings: Bank of America (BAC)

Street view on Bank of America branch in NYC with people waiting, pedestrians crossing, crosswalk, bike, road in Manhattan

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Shareholders of Bank of America (NYSE:BAC) will be hoping that the second biggest U.S. lender reports better second quarter (Q2) results than JPMorgan Chase (NYSE:JPM) did last week. JPMorgan set a bad precedent for earnings from the major U.S. banks, reporting that its profit fell 28% during the April through June period. Investment bank Morgan Stanley (NYSE:MS) further worsened sentiment by reporting that its profit fell 30% during Q2. The dismal numbers from two of the biggest banks sent the Dow Jones Industrial Average down 500 points on the day.

Hopefully Bank of America can smooth things over with Wall Street analysts and Main Street investors when it issues its quarterly print on Jul. 18. The major lenders have been dealing with numerous issues this year that appear to have intensified in recent months. These include rising interest rates that are slowing loan growth, a dearth of mergers and acquisitions and initial public offerings that are denting investment banking revenue, and onerous capital requirements that are forcing them to set aside money to cover potentially bad loans. Analysts are forecasting that Bank of America will report earnings per share (EPS) of 78 cents on revenues of $22.67 billion. BAC stock was recently down 35% year-to-date (YTD) at $29.94 per share.

Goldman Sachs (GS)

Goldman Sachs logo at a PR event. GS stock.

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The world’s leading investment bank has a reputation for earning money and posting profits in any market. Will the current market downturn and macroeconomic headwinds prove too much for Goldman Sachs (NYSE:GS) this time around? We’ll find out on Jul. 18 when Goldman reports its Q2 results. Wall Street is expecting the bank to announce EPS of $7.25 on revenues of $10.88 billion. Anything better could give GS stock a lift, and it could use one. Through nearly seven months of the year, Goldman Sachs’ share price is down 29% and trading at $280 a share. Last November, the stock was sitting above $425.

The most recent news out of the investment bank is that it has hired former Google (NASDAQ:GOOGL) executive Jared Cohen to lead its newly created innovation group. The goal of the innovation group, according to an internal memo circulated within Goldman, is to “identify and advance commercial opportunities for the firm that are at the intersection of a changing global marketplace, shifts in the geopolitical landscape, and rapidly evolving technology.” That sounds like it could be exciting.

Separately, Goldman Sachs remains somewhat bullish on markets and the economy, with its chief economist saying that the bank is “doubtful that the economy is already in a recession.”

Stocks Reporting Earnings: Ally Financial (ALLY)

Ally Financial, Inc. (ALLY) logo

Source: Ally Invest

Detroit-based lender Ally Financial (NYSE:ALLY) is a smaller bank. However, it has gotten a lot of attention recently with the news that legendary investor Warren Buffett has been buying its stock as the price has fallen this year. Buffett’s holding company, Berkshire Hathaway (NYSE:BRK-B), has been taking advantage of the fact that ALLY stock has declined 32% YTD to $33, buying nearly nine million shares for a total investment of about $390 million. The investment is a bit unusual for Buffett given that Ally Financial is the biggest direct-to-consumer digital bank in America, has no physical branch locations, and largely focuses on car loans.

Ally Financial also marks a return to banks for Buffett, who sold most of his holdings in the major lenders over the past two years. Unfortunately, the positive bump ALLY got from news that Berkshire Hathaway has taken a position in the company was brief. After a marginal bump higher, Ally Financial’s shares have continued to trend lower with the market. A strong Q2 earnings print might help to turn things around. It will be important to see how the company’s consumer loans, notably its automotive loans, are holding up in the wake of rising interest rates. Analysts expect Ally Financial to report EPS of $1.86 on revenue of $2.19 billion when it announces results next week.

Netflix (NFLX)

the netflix logo displayed on a tablet that a person is holding while laying down

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Netflix (NASDAQ:NFLX) has warned that its Q2 numbers will likely be ugly, forecasting that it could lose as many as two million subscribers in the period. This is after the company raised its monthly subscription fees and said that its market penetration is starting to become saturated. The original streaming service also faces growing competition and a decline in viewership as consumers emerge from Covid-19 hibernation. It has all added up to a perfect storm at the Los Gatos, California-based company. So far in 2022, NFLX stock has plummeted 70% to trade at $174.26 per share.

The company does have a plan to pull its stock out of the tailspin. It involves adding a lower price streaming tier that will be supported by advertisements. While the company previously said it would never put ads on its streaming platform, one should never say never when it comes to the entertainment industry. To that end, Netflix has just announced that it is partnering with Microsoft (NASDAQ:MSFT) on a cheaper ad-supported streaming tier. The company wants to officially launch the new advertising tier before the year’s end. Time will tell if it flies with consumers. More immediately, Wall Street forecasts that Netflix will report EPS of $2.96 on revenue of $8.04 billion for Q2.

Stocks Reporting Earnings: International Business Machines (IBM)

Quantum computing stocks: Sign of IBM with Canada Head Office Building in background in Markham, Ontario, Canada. IBM is an American multinational technology company.

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Believe it or not, International Business Machines (NYSE:IBM) stock is actually up this year. While just about every other technology stock has crumpled since January, IBM’s share price is actually up 3% on the year, outperforming the market by a wide margin. At its current level of nearly $140 a share, the stock is now trading at its highest level since before the pandemic. The rise in the share price comes after the Armonk, New York-based company jettisoned its unprofitable information technology unit and infrastructure services business, spinning them off into a new publicly traded company called Kyndryl (NYSE:KD).

The spinoff has enabled IBM to concentrate on its more profitable computer hardware and software business, as well as cutting edge areas such as artificial intelligence. Investors are applauding the change judging by the way the stock has risen this year. After years of chronic underperformance, IBM, which has been a going concern since 1911, is back to being a leading tech stock and a market outperformer. The change in fortunes has to be welcomed by long suffering IBM shareholders, many of whom were calling for the company to split off its unprofitable businesses. Analysts are calling for IBM to report EPS of $2.28 on revenue of $15.19 billion when it reports on Jul. 18.

Tesla (TSLA)

Tesla (TSLA) Motors Assembly Plant in Tilburg, Netherlands.

Source: Shutterstock

Elon Musk is everywhere, but for all the wrong reasons. The Tesla (NASDAQ:TSLA) head honcho continues to generate headlines for his ongoing battle with social media giant Twitter (NYSE:TWTR). Musk’s decision to call off his planned $44 billion acquisition of Twitter has cast a shadow over Tesla, with the electric vehicle maker’s stock falling on news of the Twitter purchase and recovering once Musk called off the deal. Concerns that Musk’s focus is being diverted away from Tesla continues to be an issue for the company’s shareholders. Yet, for his part, Musk remains steadfast that he is committed to the electric vehicle company.

But while it has gotten a bit of a bounce in recent weeks, TSLA stock was recently down 41% this year at $713.21 per share. While the company continues to expand around the world — notably in Europe where it earlier this year opened a new manufacturing plant outside Berlin, Germany — Tesla continues to grapple with multiple issues, including renewed Covid-19 lockdowns in China, global supply chain constraints, and regulatory actions against it over various crashes and accidents involving its vehicles, notably when they are in the beta self-driving mode. Analysts have Tesla penciled in for Q2 revenues of $17.28 billion.

Stocks Reporting Earnings: Verizon Communications (VZ)

5G stocks

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How is the rollout of fifth generation (5G) wireless networks going across America? We’ll get an idea when New York-based Verizon Communications (NYSE:VZ) reports its latest numbers at the end of next week. While VZ stock is in the red for the year, its decline of 3% since January is much better than most of its peers. The technology-laden Nasdaq index is down 30% YTD and deep in a bear market. By comparison, Verizon’s shares have performed admirably. The performance can be attributed to demand for the telecommunications company’s 5G wireless network and also to its hefty quarterly dividend payment that yields 5.07%.

Investors who are seeking safe-haven stocks as the market declines are turning to securities that have strong dividend yields and Verizon’s dividend is among the strongest. Considering that the average dividend yield among stocks listed on the S&P 500 index is only 1.7%, Verizon’s yield of more than 5% is truly impressive and it is attracting a lot of investors this year who cannot rely on share prices to appreciate, but can still count on regular dividend payments from companies like Verizon. When the company reports next week, analysts expect it will announce EPS of $1.33 on revenues of $33.75 billion.

On the date of publication, Joel Baglole held long positions in BAC, MS, GOOGL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


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