Apple and Tesla earnings will beat the Street, investors say

Key Points
  • Using Estimize, CNBC found that Facebook, Apple, Starbucks and Tesla are all expected to beat expectations.
  • About 25 percent of the S&P 500 is scheduled to report this week on top of the 55 percent already in.
Apple CEO Tim Cook
Brendan McDermid | Reuters

This will be a busy week for Wall Street as a quarter of the reports earnings. But investors think there are 10 companies that will provide positive surprises.

CNBC used Estimize, which pools thousands of estimates from real investors and traders, to sort through the many companies reporting over the next week and find the ones where this group had higher expectations than the standard Wall Street consensus estimate from analysts.

About 55 percent of the S&P 500 has reported earnings and another 25 percent is on tap this week. Those companies include Facebook, Apple, Starbucks and Tesla. They are also among the companies forecast to report better-than-expected earnings, according to estimates from Estimize.

All but three of the 10 companies reporting this week have a history of topping the Street, too.

Apple, a Dow component, is scheduled to report earnings Thursday after the bell and should report a profit of $1.89 per share, according to Estimize. That would be 3 cents above consensus. The iPhone maker has also beaten the Street 57 percent of the time, according to Estimize.

Mizuho Securities analyst Abhey Lamba said in a note on Oct. 17 that he sees Apple earnings per share coming in line with Wall Street estimates or slightly above expectations. "We expect management to remain focused on the cost side," Lamba said.

The surprising bear case for Apple ahead of earnings
The surprising bear case for Apple ahead of earnings

He also said he sees little upside in iPhone shipments — a key metric for the tech giant — "given the fact that no iPhone X shipments occurred during the September quarter as well as the largely incremental nature of iPhone 8 features announced."

Lamba has a neutral rating and a $160 price target on Apple; it traded above $166 on Monday.

Apple shares hit a record high on Monday, helping lift the Nasdaq composite to an all-time high. The stock is up 43 percent year to date, easily outperforming the broader S&P 500.

Tesla, meanwhile, will report a loss of $2.27 a share, which is better than the expected Wall Street loss of $2.45, according to Estimize. However, the company has a history of disappointing Wall Street, topping estimates just 32 percent of the time, according to Estimize.

Analysts at UBS also slashed their full-year earnings forecast for Tesla, predicting more production problems with its Model 3 car.

"We believe the market should not ignore fundamental challenges that persist with regards to Tesla's Model 3 profitability, stationary storage & solar businesses, and eventual need to raise cash," UBS analyst Colin Langan said in a note.

Tesla shares are up 50.1 percent for the year. The company is set to report Wednesday after the close.

Facebook and Starbucks will also beat the Street, according to Estimize. Shares of Facebook are up 56 percent in 2017 while Starbucks is nearly flat. Facebook is scheduled to report Wednesday after the bell and Starbucks will report Thursday after the close.

WATCH: UBS slashes Tesla profit estimates

UBS slashes Tesla profit estimates predicting more Model 3 problems
UBS slashes Tesla profit estimates predicting more Model 3 problems