Earnings Season in US - Q3' 16

by Kiril Zagorski Tue Oct 18, 2016 12:06 am

17th October, 2016

Today was a busy day with some important companies reporting their financial results for Q3' 16 from different sectors in US economy.

Before the market open - Bank of America (Financials) reported higher than expected quarterly results for Q3 ' 16 (0.41 vs 0.34). The price rose in the pre-market trading, but closed lower than the open price leading by the whole market sentiment during the last hours of today's trading.

After the market close - IBM (Technology) and Netflix (Consumer Services) reported higher than expected EPS for Q3' 16 after the close of today's session. These results lifted their stock prices during the after-hours trading. The expected EPS for Bank of America was 3.23, whereas the reported EPS was 3.29, almost 2% missed the expectations. Netflix was a real surprise for the investors as the expected EPS was just 0.06/share, whereas the reported EPS was higher 2 times reaching 0.12/share. This lifter the stock price with 20% during the trading hours after the market close.

18th October, 2016

There will be a dozen of important reports coming tomorrow, before and after the market close, so i expect an intense trading session. 3 major companies from Dow Jones 30 (Goldman Sachs, Intel, Johnson & Johnson) and 2 major from NASDAQ 100 (Intel, Yahoo!) will be reporting today which will influence the indices:

1. BlackRock (Financials) - before market open - expected EPS = 4.989 vs Actual = 5.14
2. Goldman Sachs (Financials, a part of Dow Jones 30) - before market open - expected EPS = 3.88 vs Actual =4.88
3. Domino's Pizza Inc (Consumer Services) - before market open - expected EPS = 0.89 vs Actual = 0.96
4. Harley-Davidson Inc (Consumer Goods) - before market open - expected EPS = 0.637 vs Actual = 0.64
5. Intel (Technology, a part of Dow Jones 30 and NASDAQ 100) - after market close - expected EPS = 0.72 vs Actual = ?
6. Johnson & Johnson (Health Care, a part of Dow Jones 30) - before market close - expected EPS = 1.65 vs Actual = 1.68
7. Yahoo! Inc (Technology, a part of NASDAQ 100) - after market close - expected EPS = 0.14 vs Actual = 0.20

1. BlackRock reported quarterly earnings that beat analysts' expectations on Tuesday, though revenue missed estimates.
The world's largest asset manager posted fiscal third quarter earnings of $5.14 a share versus expected 4.989 (3% over the expectations) on $2.84 billion in revenue versus expected $2.88 billion.

2.Goldman Sachs reported third-quarter earnings that easily beat the market expectations - $4.88 vs $3.84. Revenue reported was $8.17 billion versus the expectations of $7.42 billion.
Shares spiked more than 1.5 percent in pre-market trade.

6.Johnson & Johnson - Johnson & Johnson posted better-than-expected earnings and revenues. J&J earned $1.68 per share on revenue of $17.82 billion vs. the expectations of $1.65 per share and revenue of $17.74 billions.

7. Yahoo! Inc posted better-than-expected earnings and revenues. The expected EPS = 0.14 vs Actual = 0.20 as the revenues was $1.31 billion. The stock prices jumped more than 1% after the market close.

5. Intel disappointed the market by reporting lower than expected EPS and revenues. The stock prices dropped more than 3% after the market close.