In this article, we will take a look at the 10 most anticipated earnings to watch in October.
The third-quarter earnings season will commence this week. Analysts expect factors like the dwindling economy, spiking costs and supply-chain challenges to negatively impact the profitability of most U.S. stocks. Moreover, investors are also not expecting any big surprises due to these factors.
Financial stocks, including Wells Fargo & Company (NYSE:WFC) and JPMorgan Chase & Co. (NYSE:JPM), will officially kick off the Q3 earnings season this week.
In addition, sector giants, including Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:META), Exxon Mobil Corporation (NYSE:XOM) and UnitedHealth Group Incorporated (NYSE:UNH), will also post their quarterly reports in the coming days.
Check out the complete article to see the 10 most anticipated earnings to watch in October.
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10. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 71
The Procter & Gamble Company (NYSE:PG) plans to release its fiscal first-quarter report before the opening bell on October 19, 2022. Analysts expect a strong dollar to weigh on the profitability of consumer goods stocks, including Procter & Gamble.
Meanwhile, Deutsche Bank analyst Steve Powers also thinks rising costs and currency headwinds would drag down the margins of The Procter & Gamble Company (NYSE:PG). He recently trimmed his price target for the stock from $157 per share to $155 per share.
The Procter & Gamble Company (NYSE:PG) shares are currently trading around $125. The stock has lost about 23 percent of its value so far in 2022.
9. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 72
Exxon Mobil Corporation (NYSE:XOM) is scheduled to announce its financial results for the third quarter on October 28, 2022. The oil giant is expected to post solid results primarily due to elevated prices of natural gas.
However, recent weakness in oil prices may partially impact its profitability. Analysts, on average, expect Exxon Mobil Corporation (NYSE:XOM) to post earnings of $3.44 per share for Q3, compared to $4.21 per share in the prior quarter.
Energy stocks, including Exxon Mobil Corporation (NYSE:XOM), have capitalized on the higher energy prices this year. Meanwhile, the company also benefitted from a sharp surge in gas prices following the Russia-Ukraine war. The stock has climbed more than 50 percent on a year-to-date basis.
8. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) will report its financial results for the third quarter before the opening bell on October 13, 2022. Analysts expect the Taiwanese semiconductor giant to beat expectations due to favorable currency exchange and recently released sales data.
Analysts are looking for a profit of $8.39 billion, representing a surge of 71 percent on a year-over-year basis. Moreover, they expect Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to post revenue of $19.4 billion, up 48 percent versus the corresponding period of 2021.
Moving forward, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) could face some hurdles amid new U.S. guidelines. The latest regulations prevent international semiconductor firms from supplying chips to Beijing designed with U.S. technology.
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) plans to post its financial results for the third quarter on October 19, 2022. The electric vehicle (EV) giant has already announced its delivery numbers for the period.
The company delivered 343,830 EVs in the third quarter, marking a record. Yet, the numbers missed analysts’ average estimate of 359,162. Nevertheless, Tesla, Inc. (NASDAQ:TSLA) did pretty well in China in terms of vehicle production during the last month.
According to a recent report from the China Passenger Car Association, Tesla, Inc. (NASDAQ:TSLA) sold 83,135 China-manufactured units in September, beating its previous monthly sales record of 78,906.
Other than Tesla, Inc. (NASDAQ:TSLA), investors are also eagerly waiting for earnings reports from Apple Inc. (NASDAQ:AAPL), Wells Fargo & Company (NYSE:WFC) and JPMorgan Chase & Co. (NYSE:JPM).
6. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) is set to post its third-quarter results on October 18, 2022. Analysts expect the healthcare giant to post earnings of $2.52 per share on revenue of $23.47 billion.
Meanwhile, Citi analyst Joanne Wuensch recently trimmed his price target for Johnson & Johnson (NYSE:JNJ) from $201 per share to $198 per share. The analyst was primarily moved by macroeconomic challenges.
Separately, Johnson & Johnson (NYSE:JNJ) also appeared in the second-quarter 2022 investor letter of investment management firm Distillate Capital Partners LLC. Here’s what the firm said:
“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”
5. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 83
Wells Fargo & Company (NYSE:WFC) is set to release its third-quarter earnings on October 14, 2022. Most analysts expect higher interest rates to drive the net interest income of major U.S. banks, including Wells Fargo.
On the other hand, many expect a sharp spike in borrowing costs to drag down the mortgage and auto-lending businesses of Wells Fargo & Company (NYSE:WFC). JPMorgan analyst Vivek Juneja also mentioned these factors in his recent coverage for the stock.
Juneja slashed his price target for Wells Fargo & Company (NYSE:WFC) from $49.50 per share to $46.50 per share. The analyst pointed towards decelerating loan growth and increasing recession fears that continue to pressurize financial stocks.
4. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 91
UnitedHealth Group Incorporated (NYSE:UNH) plans to announce its financial results for the third quarter before the opening bell on October 14, 2022. Analysts are calling for earnings of $5.42 per share, representing a surge of about 20 percent over the corresponding period of 2021.
Moreover, UnitedHealth Group Incorporated (NYSE:UNH) is expected to generate revenue of $80.5 billion, up nearly 11 percent on a year-over-year basis.
Meanwhile, investment management firm Carillon Tower Advisers also shared its brief views about UnitedHealth Group Incorporated (NYSE:UNH) in its second-quarter 2022 investor letter, stating:
“UnitedHealth Group Incorporated (NYSE:UNH) reported solid quarterly results and raised 2022 guidance modestly. Additionally, managed care is another industry that is viewed as defensive in the current environment, which helped support UnitedHealth and its peer group.”
3. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 104
JPMorgan Chase & Co. (NYSE:JPM) is scheduled to post its third-quarter results on October 14, 2022. Wall Street analysts expect the bank to earn $2.92 per share on revenue of $32.06 billion.
Meanwhile, CEO of JPMorgan Chase & Co. (NYSE:JPM), Jamie Dimon, recently warned of a recession. He believes the global economy could plunge into recession in 2023. Speaking in an interview, Dimon talked about increasing inflation, elevated interest rates, the Russia-Ukraine war and tightening monetary policy. He believes these factors could lead the economy into recession.
Separately, investment management firm Vltava Fund mentioned JPMorgan Chase & Co. (NYSE:JPM) in its third-quarter 2022 investor letter, stating:
“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.
JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.”
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) will be releasing its fiscal fourth quarter results at the end of this month. While many are concerned about the company’s upcoming earnings, Citi analyst Jim Suva remains optimistic about the stock.
Referring to his recent market checks, Suva said Apple Inc. (NASDAQ:AAPL) would achieve its original outlook of producing 90 million units of iPhone 14. Suva kept a “Buy” rating and a price target of $185 per share for the stock.
Meanwhile, analysts, on average, expect Apple Inc. (NASDAQ:AAPL) to earn $1.26 per share on revenue of $88.74 billion. This compares to earnings of $1.24 per share on revenue of $83.4 billion posted by the smartphone giant in the corresponding period of 2021.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. (NASDAQ:META) plans to announce its profit and sales for the third quarter after the closing bell on October 26, 2022. Like its peers, the social network giant is also struggling to boost its sales.
Meanwhile, Meta Platforms, Inc. (NASDAQ:META) plans to cut costs to make up for its decelerating sales growth. On the other hand, several analysts also expressed concerns about the growth prospects of the company.
For instance, Atlantic Equities analyst James Cordwell recently trimmed his ratings for Meta Platforms, Inc. (NASDAQ:META) from “Overweight” to “Neutral,” citing increasing macro challenges and intensifying competition.
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Disclosure: None. 10 Most Anticipated Earnings to Watch in October is originally published on Insider Monkey.
