As the uncertainty and confusion associated with the coronavirus surrounding the second stimulus deal continues to pressurize markets, some of the largest US companies will report third quarter 2020 earnings in the coming week.
Several mega-cap companies will release their latest reports, at a time when investors need a solid signal that corporate America is coming out of a recession and underlying demand remains strong.
In this environment, corporate earnings are a critical indicator, justifying the ongoing rally, as well as providing future guidance to help investors determine whether their expectations are in line with the company's outlook.
In a week full of important announcements, we'll focus on these three stocks:
1. Netflix
The streaming entertainment giant Netflix (NASDAQ 🙂 will report third quarter earnings on Tuesday, Oct.20 after market close. Analysts predict $ 2.12 an equity gain on revenue of $ 6.37 billion.
Netflix stocks have fared better during the COVID-19 pandemic as the content-rich video streaming service has proven to be a perfect "stay-at-home" stock.
By Friday's close at $ 530.79, Netflix shares had gained about 68% so far this year, compared to about 8% gain in the index. This unexpected resilience comes after Netflix's dismal performance in 2019, when stocks fell far short of the surge that pushed so many other mega-cap technology stocks to new heights. rally. The Los Gatos, CA-based company must show that it is solidifying its position as the dominant streaming service during the coronavirus pandemic as its competitors struggle.
2. Lockheed Martin
Lockheed Martin (NYSE 🙂 is scheduled to report its Q3 earnings on October 20 before the market opens. Analysts predict an average of $ 6.09 earnings per share on revenue of $ 16.1 billion.
Lockheed Martin Weekly Chart
The US defense industry has continued to operate through the coronavirus-induced lockdowns, protecting Lockheed Martin from any significant financial impact. In the absence of business interruptions and increased government spending, Lockheed is well positioned to weather the current economic downturn.
Despite some increases in production in Texas and Florida, Lockheed Martin said in July that it does not expect the pandemic to negatively impact his finances this year, and increased his sales and earnings advice for 2020.
Also, the world's largest defense contractor has an impressive portfolio of products and services, including the F-35 fighter jets that are the largest source of profit. LMT shares were up about 9% in the quarter to close at $ 386.50 on Friday.
3. Intel
Chipmaker Intel (NASDAQ 🙂 will also be under close scrutiny over the next week, when it releases its latest quarterly results on Thursday, October 22, after closing. According to analyst consensus
Intel, the largest chip maker in the US by, benefited from strong demand for chips that hit before the coronavirus pandemic. But those gains were curtailed as Intel struggled to ramp up the production of chips that use the latest 14 nanometer process node. Last year's results showed that sales were up 2%, although the net result remained flat.
Intel stock, which closed at $ 54.16 Friday, underperformed compared to other chip makers in the current market recovery. The stock is up nearly 20% from its mid-March low of $ 42.86 as it faces challenges to introduce new and powerful chips and gain competitors' market share.
