Netflix, Tesla and Meta headline a big earnings week after stocks’ worst week since June
Third-quarter earnings season ramps up this week, with Netflix and GE Aerospace reporting Tuesday and Tesla, Meta Platforms and Lam Research on Wednesday. Analysts expect 29.5% year-over-year earnings growth for the S&P 500, Investing.com reported, leaving a high bar for company guidance.
The calendar: Netflix reports after the market close Tuesday, Oct. 20, with consensus estimates of $0.82 a share in earnings on $12.87 billion in revenue, Investing.com reported. GE Aerospace reports before the open Tuesday, and Tesla, Meta and Lam Research report after the close Wednesday, Oct. 21. SpaceX said it will report Tuesday, TipRanks reported. Other companies on the week’s list include GM, RTX, IBM, AT&T, Procter & Gamble, Lockheed Martin, Spotify, American Express and SLB, according to TipRanks.
What analysts are watching: For Tesla, consensus is $0.46 a share on $27.92 billion in revenue; its latest quarter missed earnings estimates by 32.65% and the shares fell 15.63%, Investing.com reported. For Meta, consensus is $6.77 a share on $63.29 billion, though estimates fell 3.41% over 30 days amid concern that AI spending is pressuring margins. Lam Research, expected at $2.18 a share on $8.13 billion, is seen as a report card on AI infrastructure spending after a 91.60% one-year gain in its stock. The estimates were checked Oct. 16, the outlet said.
Guidance over beats: Netflix’s latest quarter produced a small earnings beat, yet the stock fell 6.42%, and earlier beats at GE Aerospace also led to selling, Investing.com noted. The outlet said forward guidance, not just earnings per share, is likely to be the real catalyst.
Why it matters now: Last week was the market’s worst since June, TipRanks said, and after the tech sell-off, earnings beats and positive guidance from these companies “could be a game-changer.” The week moves earnings season from bank-led signals to the market’s biggest growth and industrial tests, Investing.com said.