The third quarter earnings season is about to kick into high gear next week, with several major companies scheduled to announce their quarterly results. This is a critical period for the market, especially as it seeks to maintain the impressive year-to-date gains. Apart from the major banks, some notable companies that investors and traders should keep an eye on include PepsiCo (PEP), Delta Air Lines (DAL), and UnitedHealth Group (UNH). Let’s take a closer look at what to expect from each of these quarterly releases.
PepsiCo shares have faced some challenges over the past few months, following a strong start to the year. The stock is down approximately 13% during this period. However, analysts have maintained their earnings expectations for the upcoming release relatively unchanged. The Zacks Consensus EPS Estimate stands at $2.17, only a penny lower than it was a few months ago.
PepsiCo has a track record of consistently beating quarterly expectations, exceeding both Zacks Consensus earnings and revenue estimates in six consecutive releases. Despite the recent price decline, the stock has historically seen a post-earnings boost as shown in the chart below:
It’s worth noting that PepsiCo raised its full-year outlook following its latest quarterly report, citing strong business momentum. Analysts expect the company to report quarterly revenue of $23.4 billion, representing a 6% increase compared to the same period last year.
PepsiCo is set to report its earnings on Tuesday, October 10th, before the market opens.
Delta Air Lines (DAL)
Delta Air Lines shares have experienced a similar downward trend as PepsiCo over the past three months. The stock has faced adverse price action following a significant increase earlier in the summer. Analysts have lowered their expectations for Delta Air Lines following a filing in September. The Zacks Consensus EPS Estimate is now at $1.96, down 17% from a few months ago.
Despite posting record quarterly revenue and profitability in the previous release, Delta Air Lines’ stock sold off, likely due to profit-taking following the summer rally. Rising fuel costs throughout the period are expected to have impacted the company’s performance. The average fuel price per gallon for this quarter is estimated to be $2.88, 14% higher than the previous quarter.
Delta Air Lines is scheduled to report its earnings on Thursday, October 12th, before the market opens.
UnitedHealth Group (UNH)
Unlike PepsiCo and Delta Air Lines, UnitedHealth Group shares have seen positive movement over the past few months. The stock has gained around 14% in value, outperforming the general market. Analysts have slightly lowered their expectations for UnitedHealth Group’s upcoming quarterly release, with the Zacks Consensus EPS Estimate down 2% since July.
UnitedHealth Group posted strong balanced growth in its previous release, with both segments achieving double-digit percentage year-over-year growth rates. The company consistently exceeds both Zacks Consensus earnings and revenue forecasts. Given its solid first-half performance, UnitedHealth Group raised its full-year adjusted EPS outlook to $24.70 – $25.00 per share.
UnitedHealth Group will report its earnings on Friday, October 13th, before the market opens.
Earnings season is always an exciting time for investors and traders as companies reveal their financial performance. Next week, the quarterly reports from PepsiCo, Delta Air Lines, and UnitedHealth Group will be particularly significant. These releases can provide valuable insights into the performance and future prospects of these companies, impacting the market. Stay tuned for the latest updates.