Earnings playbook: An investor's roadmap to the major reports ahead this week

Published Sun, Oct 31 20218:40 AM EDT

Sara Salinas @in/saracsalinas @saracsalinas

The major earnings reports are behind us, and they revealed cracks for some of Wall Street's biggest names. Amazon and Apple each fell short of expectations, and a handful of companies reported labor and supply chain challenges. This week several Covid-related names are due to report quarterly results. CNBC runs through which companies are up this week and what metrics will be in focus. Tuesday Pfizer is set to report earnings around 6:45 a.m. ET, followed by an investor call at 10 a.m. Last quarter: PFE reported $7.8 billion in Covid vaccine sales and raised its full-year outlook This quarter: Wall Street expects a 50% jump in earnings over the same quarter last year What CNBC health reporter Berkeley Lovelace Jr. is watching: "Pfizer's revenue has surged, thanks to the popularity of its Covid-19 vaccine with BioNTech. Wall Street expects the high demand for its vaccine to continue as the company has received U.S. authorization for a third dose and shots for some 28 million kids ages 5 to 11 are expected to begin in November. The strong vaccine sales are especially important for the company's long-term outlook as it will soon lose market exclusivity for a number of other drivers, including stroke prevention treatment Eliquis and arthritis drug Xeljanz." What history shows: Pfizer stock has traded higher following earnings for the past two quarters, but on average it loses some ground, according to Bespoke Investment Group. Under Armour is due to report its results just before 7 a.m. ET and will hold an analyst call at 8:30 a.m. Last quarter: UAA smashed EPS estimates and raised its guidance This quarter: Analysts are expecting earnings to come in 41% lower than the year-ago period What CNBC retail reporter Lauren Thomas is watching: "Under Armour has been discounting less in hopes of raising the prestige factor of its brand. So far, its efforts appear to be working. But other challenges have evolved. Investors will be listening for Under Armour's comments around the ongoing supply chain constraints and how that could impact future quarters. One of the biggest headaches for the athletic apparel and footwear industry in recent months has been its reliance on Vietnam as a manufacturing hub. Production facilities there were recently shut down due to Covid restrictions." What history shows: Shares of Under Armour typically get beat up the day after a quarterly report, but last quarter they advanced 7.5%, according to Bespoke. The third quarter is the stock's most volatile in next-day trading. Lyft is scheduled to release results shortly after market close, with an investor call at 4:30 p.m. ET Last quarter: LYFT reported revenue growth of 125% year over year This quarter: The Street is projecting another quarter of per-share losses before a profitable fourth quarter What CNBC technology reporter Jessica Bursztynsky is watching: " Driver supply and demand imbalances continue to be the story for these rideshare companies, leading to high prices and long wait times. Investors are waiting to see whether or not incentives have worked and these rates have leveled off, or if the companies will need to keep spending money on getting more drivers. Lyft also reported its first quarterly adjusted EBITDA profit last quarter, which investors believe the company could sustain." What history shows: Lyft stock has a terrible track record the day after a quarterly report. It trades higher only 30% of the time and sheds more than 4% on average, according to Bespoke. SolarEdge will report earnings after the closing bell and will host a call with executives at 4:30 p.m. ET Last quarter: SEDG topped expectations and provided an upbeat forecast This quarter: Wall Street is looking for EPS growth of 12% over last year What CNBC energy reporter Pippa Stevens is watching: "Expectations are high for SolarEdge's quarterly report after competitor Enphase posted record revenue and gave optimistic guidance , saying it's navigating supply chain headwinds. Given that the inverter market is essentially a duopoly between the two companies, each is fighting for market share." What history shows: SolarEdge is typically a big winner around earnings, trading up more than 6% on average following a report, according to Bespoke. Last quarter the stock advanced 16% in next-day trading. Wednesday CVS Health is due to report earnings just before 7 a.m. ET, followed by an analyst call at 8 a.m. Last quarter: CVS posted strong earnings but warned of rising expenses associated with an investment plan This quarter: Analysts are forecasting just a 7% EPS bump over last year What CNBC retail reporter Melissa Repko is watching: "CVS investors will be eager to see if the company capitalized on a growing number of employer mandates and saw a jump in Covid-19 vaccine numbers, like rival Walgreens Boots Alliance. Booster shots and the eligibility of children could also make this a revenue opportunity in the future. Rising costs will also be top of mind and could be CVS' toughest challenge. The drugstore chain, like other retailers, is coping with a labor shortage that is increasing employee wages. It's also cautioned that it is juggling higher investments and Covid-related health-care costs." What history shows: CVS historically comes out ahead in next-day trading, but it's sold off for 5 of the last 8 quarters, according to Bespoke. Qualcomm is set to report earnings right at the closing bell, with an investor call at 4:45 p.m. ET Last quarter: QCOM reported revenue 63% higher than the year-ago quarter , driven by chip sales This quarter: Wall Street is estimating an earnings jump of nearly 56% compared with last year What CNBC technology reporter Kif Leswing is watching: "Last quarter, Qualcomm's sales were up 63%, driven by its QCT business, which primarily sells semiconductors for smartphones. Smartphones have seen sales surge during the pandemic, but the tide may be turning because of supply shortages and an exhausted market. Investors will be watching to see if supply issues hold down sales. One bright spot for the company could be its automotive business, which is still much smaller than its handset or licensing businesses, but it's growing faster. This quarter, GM revealed that it would use Qualcomm chips to power some of its new digital services, and that could show up in the company's sales." What history shows: Qualcomm shares have posted substantial gains following an earnings report 5 of the last 8 quarters, according to Bespoke. Two of those next-day gains were greater than 10%. SunPower will release its results around 4:05 p.m. ET, with an investor call scheduled at 4:30 p.m. Last quarter: SPWR fell short of Wall Street's revenue estimates This quarter: The Street is expecting SunPower to eke out a per-share profit, compared with a loss in the year-ago period What CNBC energy reporter Pippa Stevens is watching: "This is the first time we're hearing from SunPower since the company announced plans to double down on residential solar. Earlier in October the company said it's planning to sell its commercial and industrial business, so investors will be watching for commentary around SunPower's new long-term vision." What history shows: There's no real pattern to SunPower's next-day trade following a quarterly report, but it's suffered some painful sell-offs in recent quarters, according to Bespoke. Thursday Moderna is due to report at 7 a.m. ET, followed by an investor call at 8 a.m. Last quarter: MRNA topped analysts' estimates on the top and bottom lines and offered new data on its Covid vaccine alongside results This quarter: Wall Street is forecasting a massive upside on EPS and revenue compared with last quarter What CNBC health-care reporter Berkeley Lovelace is watching: "Investors will be looking for reassurance from Moderna about the durability of its Covid vaccine business heading into the new year as well as the potential value of its other drug candidates in development. The Covid vaccine – the company's only commercialized product – has generated strong sales, bringing in $4.2 billion in April through June alone. However, those sales may weaken as the global pandemic shows signs of waning, analysts say. Moderna has pointed to the flu, RSV and other viruses as other lucrative opportunities." What history shows: Moderna stock typically falls the day after an earnings report, but it's been mixed as of late, according to Bespoke. Nikola is set to report results before the opening bell and will hold an investor call at 9:30 a.m. ET Last quarter: NKLA posted a narrower-than-expected loss , but lowered its revenue and delivery expectations for 2021 This quarter: The Street is projecting worsening per-share losses for Nikola What CNBC autos reporter Michael Wayland is watching: "Nikola is still attempting to get back into Wall Street's good graces amid federal investigations and the resignation last year of Trevor Milton, the company's founder and former chairman, following an internal probe that found he made inaccurate statements to investors. The company made a series of positive announcements during the third quarter but focuses for investors will be the company's near-term order book and any progress or changes in its semitruck production schedule for plans in Arizona and Germany." What history shows: Nikola stock has a rough track record around earnings, gaining ground just once in the 5 quarters that it's reported as a public company, according to Bespoke. Pinterest will release earnings right at market close and will host an investor call at 6 p.m. ET Last quarter: PINS revealed it lost users during Q2 , sending the stock plunging This quarter: Analysts are projecting earnings growth of 78% year over year What CNBC technology reporter Salvador Rodriguez is watching: "After reports that PayPal was looking to buy Pinterest , investors will look for any clarity from the social media company as to whether it's up for sale. Investors will also be curious to see how Apple's iOS privacy change impacted Pinterest's advertising business." What history shows: Shares of Pinterest have posted double-digit losses in next-day trading for each of the last two quarters, according to Bespoke. Airbnb will release results after the market close and will host an analyst call at 5:30 p.m. ET Last quarter: ABNB reported an annual revenue jump of 300% but warned the Covid delta variant could slow growth This quarter: Analysts are expecting a per-share profit for Airbnb What CNBC technology reporter Jessica Bursztynsky is watching: "Investors are still bullish about Airbnb's upcoming results, despite the Covid delta variant and school reopenings potentially leading to less travel in the U.S. Any potential weakness could be offset by growth in its Europe segment. Investors will also have their eyes on the company's fourth quarter outlook to try and get a sense of what the company is expecting from its key holiday period." What history shows: Airbnb has only reported quarterly results as a public company for 3 quarters, but the stock has advanced each time, according to Bespoke. Peloton is set to report results at 4:05 p.m. ET, followed by a call with executives at 5 p.m. Last quarter: PTON posted disappointing earnings and outlook and cut the price of its flagship Bike This quarter: The Street is estimating a sizeable loss per share, and annual revenue growth of just 7% What CNBC reporter Lauren Thomas is watching: "Peloton shares have dropped significantly this year as investors worry the stay-at-home stock's momentum is fading. Gyms and boutique fitness studios are reopening, and it's unclear how many people will invest in at-home workout equipment beyond the pandemic. But Peloton is eyeing other growth levels, including expanding internationally and debuting new products. Last quarter, Peloton said it would be ramping up marketing investments to reach potential new users. Heightened costs, including from supply chain complications and a treadmill recall, have eaten into sales. Investors will be closely watching the company's churn rate." What history shows: Peloton shares have fallen in next-day trading 6 of the last 8 quarters, including 4 sell-offs of more than 5%, according to Bespoke. Uber is due to report results at 4:05 p.m. ET, with an analyst call set for 5 p.m. Last quarter: UBER beat estimates, despite its core business losing $509 million in Q2 This quarter: Wall Street expects Uber to cut its per-share losses nearly in half compared with the year-ago period What CNBC technology reporter Jessica Bursztynsky is watching: "Uber has yet to post an adjusted EBITDA profit, but this just may be the quarter it catches up to Lyft. While driver supply and demand imbalances are also a key story, Uber has been able to make up for ride dips with its delivery business. Investors will be watching to see if its delivery segment continues to rise despite the gradual global reopening." What history shows: There's no real trend in Uber trading following a quarterly report, according to Bespoke. First Solar is due to report earnings just after market close and will host an analyst call at 4:30 p.m. ET Last quarter: FSLR blew past Wall Street's earnings expectations This quarter: Wall Street is estimating EPS almost 60% lower than the same period a year ago What CNBC energy reporter Pippa Stevens is watching: "For First Solar investors want to know how the company's supply chain looks and how it's navigating geopolitical tensions. Margins will also be top of mind, with the company facing growing competition from Asian panel manufacturers." What history shows: The third quarter is the strongest for First Solar stock following a quarterly report, according to Bespoke. Shares advance an average of nearly 4% after the company's Q3 update. Sunrun will release its results after the end of trading and will host a call with executives at 5 p.m. ET Last quarter: RUN posted a wider-than-expected loss per share This quarter: Analysts are all over the map with EPS estimates for Sunrun What CNBC energy reporter Pippa Stevens is watching: "Sunrun's the largest residential solar installer in the U.S. and the company's fighting to grow its footprint in a fragmented market where customer acquisition costs can be high. Wall Street will be looking for commentary around how many customer additions it had in the most recent quarter, as well as insight around how it's navigating supply chain bottlenecks and higher raw material prices." What history shows: Sunrun stock fell 9.5% in next-day trading last quarter, after 2 straight quarters of next-day gains that were greater than 7%, according to Bespoke. Saturday Berkshire Hathaway is set to report its quarterly earnings on Saturday, like usual Last quarter: BRKB reported operating earnings jumped 21% This quarter: The Street is looking for 30% earnings growth year over year What CNBC markets reporter Yun Li is watching: "Berkshire's operating income has been rebounding as the economic reopening boosted its railroad and energy businesses. It will be interesting to see if the conglomerate could keep the momentum going into the third quarter. Additionally, Warren Buffett could have continued to buy back stocks aggressively in the quarter following a record year of share repurchases. Berkshire's cash pile is expected to stand near its record high."

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, October 6, 2021.

Brendan McDermid | Reuters

The major earnings reports are behind us, and they revealed cracks for some of Wall Street's biggest names.