Earnings season begins in earnest this week, as a number of the largest U.S. banks are set to report results. More than 40 S&P 500 names will report their second-quarter results, including Goldman Sachs, Morgan Stanley and Bank of America. Netflix will even release its latest numbers. Expectations are high for this reporting period. FactSet data shows analysts expect S&P 500 earnings to rise 8.8% within the second quarter from the identical period last yr. If that happens, it will be the strongest earnings growth because the first quarter of 2022 — when earnings rose 9.4%. Check out CNBC Pro’s breakdown of what to anticipate from this week’s major reports. All times are Eastern time. On Monday, Goldman Sachs is predicted to report earnings before the market opens. Management will hold a conference call at 9:30 a.m. Last quarter: GS beat first-quarter estimates due to strong trading and investment banking revenue. This quarter: Analysts surveyed by LSEG expect earnings per share to have greater than doubled from the identical period last yr. What CNBC banking reporter Hugh Son observes: “Goldman Sachs reports on Monday, and expectations are high for CEO David Solomon due to an expected rebound in Wall Street activity, including merger charges. Watch for write-downs related to commercial real estate.” What history shows: Goldman has beaten earnings expectations for the past three quarters, based on Bespoke Investment Group. On Tuesday, Morgan Stanley will report earnings in premarket trading, followed by a conference call at 9:30 a.m. Last quarter: MS beat estimates on strength in asset management, trading and investment banking. This quarter: Morgan Stanley is predicted to report earnings per share growth of over 30%, based on LSEG. What CNBC banking reporter Hugh Son observes: “Morgan Stanley has two tailwinds in its favor: a rebound in investment banking fees and high stock values that are inflating assets in its wealth management division and giving new CEO Ted Pick a boost.” What history shows: The bank’s stock has risen on 4 of the past six earnings days, data from Bespoke shows. Bank of America is predicted to report earnings before the market close. Management will hold a conference call at 8:30 a.m. Last quarter: Interest income and investment banking revenue led to BAC’s better-than-expected results. This quarter: Earnings per share are more likely to have fallen nearly 10% yr over yr, data from LSEG shows. What CNBC banking reporter Hugh Son observes: “At Bank of America, investors are primarily interested in how net interest income will perform in an era of high interest rates. The company has managed to maintain its guidance despite concerns about rising funding costs. Let’s see if that trend continues.” What history shows: Bank of America averages a 0.8% decline on earnings days, based on Bespoke. Still, the corporate’s earnings beat estimates 79% of the time. On Wednesday, United Airlines is predicted to report earnings after the market close, with a call expected at 10:30 a.m. the subsequent day. Last quarter: UAL rose sharply on strong earnings guidance and trimmed its 2024 fleet plan. This quarter: The airline’s earnings are expected to have fallen 20%, based on LSEG. What CNBC airline reporter Leslie Josephs observes: “United and Delta have pulled ahead of the rest and posted better profit margins. Can they continue that? Travel demand has broken new records this year, but higher costs have weighed on the sector. United is one of the best positioned airlines to benefit from strong international travel demand. Investors will be looking for evidence of bookings outside of the summer travel peak in July and the rest of the year. Executives will also likely be asked about expansion plans, as well as ongoing delays in aircraft deliveries from Boeing and Airbus, which have hurt capacity. Capacity constraints aren’t necessarily a bad thing; as the industry adds flights, it can put downward pressure on prices, but new planes are more fuel efficient and can lower airlines’ costs. United has yet to reach a new collective bargaining agreement with its flight attendants, and the airline will face questions about any additional costs from that deal.” What history shows: Tailored data shows United beats earnings expectations 71% of the time. However, shares fall a mean of 0.54% on earnings days. On Thursday, Netflix will report earnings after the market closes. A conference call is scheduled for 4:45 p.m. ET. Last quarter: NFLX beat earnings estimates due to a 16% jump in subscribers. This quarter: The streaming giant is predicted to report earnings-per-share growth of over 40%, based on LSEG. What CNBC is watching: Some analysts are skeptical ahead of Netflix’s earnings report. Goldman’s Eric Sheridan, who has a neutral rating on the stock, noted last week, “Based on Sensor Tower data, Netflix saw a decline in app downloads in both the U.S. and globally during the quarter,” which could indicate some weakness in the corporate. Citi’s Jason Bazinet, who has a neutral rating on the stock, said Thursday, “We expect NFLX to report net adds slightly above sell-side estimates but slightly below investor expectations. Investor focus will likely remain on the company’s advertising tier, sports content strategy and capital allocation.” What history shows: Netflix beats earnings per share estimates 81% of the time, based on Bespoke. However, the stock has fallen on three of the last five earnings days.
