Earnings playbook: Your guide to trading a huge week of reports from Tesla, Netflix and others

Published Sun, Apr 17 20229:23 AM EDTUpdated Mon, Apr 18 20227:29 AM EDT

The second week of earnings kicks off Monday, and investors will get their first look at how some of the biggest tech companies in the world fared last quarter. Tesla and Netflix are among the companies slated to report next week, along with United Airlines and IBM. Take a look at CNBC PRO's breakdown of what's expected from each report. Monday Bank of America is set to report earnings before the bell, with an investor call scheduled for 8:30 a.m. ET Last quarter: BAC reported better-than-expected earnings, thanks in part to the release of $851 million in loan loss reserves . This quarter: Analysts expect a double-digit decline in year-over-year earnings, while revenue is forecast to stay roughly flat, according to Refinitiv. What CNBC banking reporter Hugh Son is watching: "Bank of America is another financial name that is considered to be a big beneficiary of rising interest rates. Analysts expect that higher rates and a pickup in loan growth will boost results at the second biggest U.S. bank by assets, but also want to hear management's guidance on the matter." What history shows: Bank of America has beaten earnings estimates 78% of the time, but the stock falls an average of 1.03% after its report comes out, according data from Bespoke Investment Group. Tuesday Johnson & Johnson is set to report earnings before the bell, followed by an 8:30 a.m. ET conference call. Last quarter: JNJ reported quarterly numbers that were roughly in line with analyst estimates. The company also noted it expects more than $3 billion in Covid vaccine sales for the year. This quarter: Wall Street is expecting single-digit year-over-year revenue growth from the pharmaceutical giant. What CNBC health reporter Spencer Kimball is watching: "Johnson & Johnson's quarterly results will give investors a first glimpse of the winter omicron wave's impact on the demand for medical care, and how the company sees the pandemic progressing later this year. J & J could also provide updates on its consumer health business, which it's spinning off into a separate publicly traded company." What history shows: Bespoke data shows J & J shares average just a 0.26% gain on earnings day. However, the stock has gone up more than 2% following the release of the last two quarterly reports. Lockheed Martin is set to report earnings before the bell, and management is slated to hold a call at 11 a.m. ET. Last quarter: LMT posted a quarterly profit that beat analyst expectations. The defense giant also reiterated its 2022 revenue outlook. This quarter: Analysts are forecasting slight year-over-year declines in earnings and revenue, according to Refinitiv. What CNBC national security reporter Amanda Macias is watching: "Investors will get their first look at how the world's largest weapons manufactured fared last quarter, as the Ukraine-Russia war began. Last week, Lockheed Martin attended meetings at the Pentagon to discuss the potential acceleration of production lines. The Javelin missile system, produced by Lockheed Martin and Raytheon, has proved to be one of the most effective weapons in the U.S. arsenal deployed to the fight in Ukraine." What history shows: Lockheed shares have fallen in three of the last four earnings days for the company. That includes an 11.8% plunge on Oct. 26. IBM is set to report earnings after the bell, with management set to hold a conference call at 5 p.m. ET. Last quarter: IBM shares jumped after the company reported revenue growth for the fourth quarter . This quarter: Analysts polled by Refinitiv expect first-quarter revenue to fall by about 20% on a year-over-year basis. What CNBC tech reporter Jordan Novet is watching: "IBM will be among the first technology companies to report first-quarter results, and perhaps the most meaningful data point to come out of the report could be geopolitical. CEO Arvind Krishna said on March 3 that the software, hardware and services provider had stopped selling technology in Russia following that country's invasion of Ukraine. Analyst Toni Sacconaghi Jr. said in a recent note that Russia could represent 1-2% of revenue. One risk is that companies hesitate to adopt IBM's next-generation mainframe computers because of the war, said analyst Erik Woodring of Morgan Stanley, with the equivalent of a buy rating on the stock. If that happens, the company's full-year forecast of revenue growth in the mid-single digits could suffer." What history shows: IBM shares average a decline of 0.71% on earnings, according to Bespoke. However, the stock has gone up following two of the last three company releases. Netflix is set to report earnings after the bell, followed by an investor call at 6 p.m. ET. Last quarter: NFLX shares tanked after the company reported a subscriber growth slowdown in the fourth quarter of 2021 . This quarter: Wall Street is expecting solid year-over-year revenue growth also a sharp decline in earnings per share. What CNBC entertainment reporter Sarah Whitten is watching: "All eyes are on Netflix's subscriber numbers. Last quarter, shares plummeted 20% as the company reported once again that its subscriber growth had slowed. Investors and analysts will be narrowing in on near term strategies to boost these figures as well as any additional information on Netflix's plans to crack down on password sharing." What history shows: Netflix shares have fallen after each of the last three earnings reports have been released, according to Bespoke. Wednesday Tesla is set to report earnings after the close, with management slated to hold a call at 5:30 p.m. ET. Last quarter: TSLA posted earnings and revenue that beat analyst expectations , but the electric vehicle maker said that supply chain issues were a "limiting factor" during the quarter. This quarter: Analysts are expecting another solid quarter from Tesla, according to Refinitiv. What CNBC tech reporter Lora Kolodny is watching: " Tesla is expected to issue new guidance on its earnings call next week, including how quickly the EV maker may be able to increase production at its factories in Germany and Texas. Shareholders will also want to know how much longer Covid restrictions in Shanghai will continue to delay Tesla's production there. During the same period last year, Tesla reported sales of $272 million worth of bitcoin. Crypto investors will be watching to see where Tesla's holdings in digital assets, including bitcoin and dogecoin, stand today." What history shows: Tesla shares have fallen after the release of two of the last three earnings reports, including an 11.6% slide in January. United Airlines is set to report earnings after the close. Management is also slated to hold an investor call the following day. Last quarter: UAL warned in its previous quarterly report that the omicron Covid variant will delay the global travel recovery and drive up costs . This quarter: Analysts expect the airline to report a sharp earnings per share decline, even as revenue jumps. What CNBC airlines reporter Leslie Josephs is watching: " Delta airlines set a cheery tone for the sector last week. Now we'll hear whether United executives agree that searing air travel demand will help cover the cost of expensive jet fuel. United's management team will face questions on progress in staffing, particularly costly and hard-to-find pilots, and the health of both leisure and rebounding corporate travel demand. United has the most international exposure, particularly to the Asia-Pacific region, which has been slow to lift travel restrictions, so expect questions on how the airline is thinking about its network over the next year." What history shows: Shares of United Airlines typically struggle on earnings days, falling more than 1% on average after the company posts its results, Bespoke data shows. Thursday American Airlines is set to report earnings Thursday, with a call slated for 8:30 a.m. ET. Last quarter: AAL reported a narrower-than-expected loss and revenue that slightly beat analyst expectations . This quarter: Analysts expect sharp year-over-year revenue growth for the first quarter, along with an earnings per share loss, according to Refinitiv. What CNBC airlines reporter Leslie Josephs is watching: "Travel demand is off the charts and investors - and customers - want to know how prepared American is for peak season. Labor shortages, particularly for pilots, is a challenging goals for growth and exacerbating routine issues like bad weather. American executives will face questions about surging jet fuel costs, which so far, travelers appear willing to cover, at least in part. The airline stopped hedging after oil prices cratered in 2014." What history shows: The airline has beaten earnings expectations 88% of the time, according to Bespoke. However, the stock averages a slight decline after the airline posts its results. Snap is set to report earnings after the bell, with a conference call slated for 5 p.m. ET. Last quarter: SNAP reported its first-ever quarterly net profit , sending the stock up as much as 62%. This quarter: Analysts polled by Refinitiv forecast a sharp year-over-year jump in revenue. What CNBC tech reported Kif Leswing is watching: "Snap is one of a handful of advertising and social media firms that is facing headwinds from Apple's recent privacy feature for iPhones, which makes it harder for Snap to target its ads at the most lucrative customers. Snap has said it is investing in new technology to ameliorate the effects of the Apple change, and any commentary that it has figured out alternatives or minimized its effects would be welcomed by investors." What history shows: Snap shares have been very volatile after the last three earnings reports, posting moves of at least 20%.

Traders on the floor of the NYSE, March 17, 2022.

Brendan McDermid | Reuters

The second week of earnings kicks off Monday, and investors will get their first look at how some of the biggest tech companies in the world fared last quarter.