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Companies Set to Report Earnings: What to Expect
Thursday: PepsiCo
PepsiCo is set to report its earnings before the opening bell on Thursday, followed by a conference call at 8:15 a.m. ET. Analysts are expecting muted year-over-year earnings growth for the beverage and snack giant. PepsiCo's results will be closely watched as a barometer for the health of the consumer, especially as the Federal Reserve continues to raise rates and inflation remains high. PepsiCo has a history of beating earnings estimates and exceeding expectations every quarter since early 2019.
Thursday: Delta Air Lines
Delta Air Lines is also set to report its earnings on Thursday, before the market opens, with a conference call at 10 a.m. ET. Analysts are expecting a sharp surge in earnings per share compared to the same period last year. Investors will be looking for more detail on the travel boom and whether it will continue at the current pace. Executives will also provide insight into corporate bookings, which usually pick up during off-peak vacation periods.
Friday: JPMorgan Chase
JPMorgan Chase, the largest U.S. bank by assets, will report its earnings before the market opens on Friday, followed by a call at 8:30 a.m. ET. The banking giant is expected to report earnings growth of more than 40% from the year-earlier period. Analysts will be watching JPMorgan Chase for trends in deposit growth, loan losses, and the outlook for Wall Street businesses.
Friday: Wells Fargo
Wells Fargo is also scheduled to report its earnings on Friday before the market opens, with a call at 10 a.m. ET. Analysts are expecting nearly 60% earnings growth for the quarter. Key factors to watch for with Wells Fargo include guidance on net interest income and the impact of the Federal Reserve's asset cap on the bank's performance.
Friday: Citigroup
Citigroup will report its earnings before the opening bell on Friday, followed by a conference call at 11 a.m. Analysts are expecting a nearly 40% decline in earnings per share for the second quarter. Citigroup faces challenges with both revenue and expenses, including a decline in investment banking and trading revenue and rising severance costs. However, the bank has a track record of beating earnings expectations and has posted gains in three of the last four earnings days.
In conclusion, the upcoming earnings reports of major companies such as PepsiCo, Delta Air Lines, JPMorgan Chase, Wells Fargo, and Citigroup provide valuable insights into their respective industries and the overall health of the economy. These reports can be particularly influential for new businesses trying to gauge market conditions and make informed decisions.
For new businesses in the consumer goods sector, PepsiCo's earnings report can serve as a valuable indicator of consumer spending habits. If PepsiCo's earnings growth is muted, it may suggest that consumers are tightening their belts, potentially impacting the demand for other consumer goods.
The earnings report from Delta Air Lines can shed light on the state of the travel industry. If Delta's earnings per share show a significant surge, it may imply that the travel boom is continuing at a strong pace. This could be a positive sign for businesses reliant on travel and tourism.
JPMorgan Chase's report is of particular importance to new businesses in the financial sector. By analyzing trends in deposit growth, loan losses, and the outlook for Wall Street businesses, entrepreneurs can gain insights into the current financial landscape and adjust their strategies accordingly.
Similarly, Wells Fargo's earnings report offers valuable information for businesses in the banking and financial services sector. Guidance on net interest income and the impact of the Federal Reserve's asset cap can provide insights into challenges and opportunities in the industry.
Lastly, Citigroup's earnings report can be of interest to new businesses looking at investment banking and trading revenue. A decline in these areas may indicate challenges faced by the sector, while its track record of beating earnings expectations demonstrates its ability to adapt and perform well under various circumstances.
In summary, keeping an eye on the upcoming earnings reports of major companies can provide crucial insights and help new businesses navigate the market. Understanding these industry trends and consumer behaviors can inform decisions and strategies, ultimately leading to better chances of success in a competitive business environment.
Article First Published at: https://www.cnbc.com/2023/07/09/earnings-playbook-jpmorgan-chase-and-delta-air-lines-kick-off-the-season.html
