Earnings playbook: How to trade results from Disney and 3 electric car makers

Published Sun, Nov 6 20227:40 AM EST

The earnings season is winding down, but some of the most widely followed companies are still on deck to report. Roughly 30 S & P 500 components are scheduled to post their latest quarterly figures, including Disney. Palantir and electric car makers Rivian, Nio and Lucid are also expected to report this week. Roughly 85% of S & P 500 companies have reported third-quarter earnings, with 71% topping bottom-line estimates, according to FactSet. Check out some of the key companies slated to post results this week, and what investors can expect out of each report. Monday Palantir Technologies is set to report earnings before the bell, followed by a conference call at 8 a.m. ET. Last quarter: PLTR posted an unexpected quarterly loss, sending the stock tumbling . This quarter: The company is expected to report year-over-year revenue growth of nearly 20% according to Refinitiv. What CNBC is watching: Palantir shares have shed more than half of their value in 2022, and investors may not find much reprieve in the company's latest quarterly report. RBC analyst Rishi Jaluria said he sees the value of Palantir's U.S. government contracts falling by 5% year over year "and down sequentially against an easier compare." What history shows: Palantir's bottom-line results have missed expectations in the last three quarters, according to FactSet. Tuesday Disney is set to report earnings after the bell, followed by a conference call at 4:30 p.m. ET. Last quarter: DIS posted streaming growth numbers that beat expectations, bolstering the media giant's earnings and revenue . This quarter: The company's bottom line is expected to have grown by more than 40% in the second quarter, Refinitiv data shows. What CNBC entertainment reporter Sarah Whitten is watching: "Disney+ subscriber numbers remain a key focus for investors ahead of the company's earnings Tuesday. Disney is set to increase prices across its streaming services in December, so more subscribers means more revenue. Other areas of interest for shareholders are Disney's theme parks, which remain a significant portion of the company's overall revenue, as well as its theatrical, which has been slow to recover after the pandemic." What history shows: Bespoke Investment Group data shows Disney beats earnings expectations 79% of the time. The stock has also posted gains of more than 3% in two of the last three earnings days. Lucid is set to report earnings after the close, with a management call set for 5:30 p.m. ET. Last quarter: LCID once again cut production targets amid logistics challenges . This quarter: The electric car maker is expected to post another quarterly loss, according to Refinitiv data based on six analyst estimate. What CNBC electric vehicles reporter John Rosevear is watching: "Investors will be searching for clues on whether Lucid is still on track to meet a conservative 2022 production target of 6,000 to 7,000 vehicles . The company has already cut its full-year production forecast twice. Originally, it expected to build 20,000 Air electric luxury sedans. However, supply chain constraints hindered the company's ability to obtain basic materials such as carpet and glass." What history shows: Lucid posted smaller-than-expected losses in the last two quarters, FactSet data shows. AMC Entertainment is set to report earnings after the close. Corporate leadership is set hold a call at 5 p.m. ET to discuss the results. Last quarter: AMC posted a smaller-than-expected loss for the previous quarter, sending the stock up 18%. This quarter: The theater operator's top line is expected to have grown by more than 20%, Refinitiv data shows. What CNBC is watching: Shareholders will look for clues on how the company is doing, as relaxed Covid restrictions lead to to greater movie theater attendance. "That said, the volume of content has not yet returned to pre-pandemic levels, and release slate holes such as August through October were largely driven by production delays over the last year. AMC has the cash to weather the slump, and is well-positioned for a strong Q4:22 and 2023 with its vast network of premium large format screens," wrote Wedbush analyst Alicia Reese, who has an underperform rating on the stock. What history shows: AMC's quarterly results have only beaten analyst estimates in three of the last 10 quarters, according to FactSet. Still, the stock averages a 1.01% gain on earnings days. Wednesday Roblox is set to report earnings in the premarket. Management is slated to hold a conference call at 8:30 a.m. ET. Last quarter: RBLX posted a bigger-than-expected loss as average daily active users came in well below expectations . This quarter: The company is expected to post another quarterly loss, but analysts see revenue growing in the mid-single digits, per Refinitiv. What CNBC is watching: Look for Roblox to go "back into growth mode," according to Bank of America analyst Omar Dessouky. "We expect 3Q consolidated bookings to grow at 9% Y/Y, driven by engagement and monetization improvements particularly in the core [U.S./Canada] market," said the analyst, who has a buy rating on the stock. What history shows: None of Roblox's six quarterly reports as a public company have beaten expectations, according to Bespoke. Still, the stock averages a 6.78% gain on earnings day. Rivian is set to report earnings after the close, with management holding a call at 5 p.m. ET. Last quarter: RIVN posted second quarter revenue that beat analyst expectations, but said it sees a wider loss for 2022 . This quarter: According to Refinitiv, Rivian is expected to post a much narrower loss relative to the year-earlier period. What CNBC electric vehicles reporter John Rosevear is watching: "Last month, Rivian said production jumped 67% from the second to the third quarter , reaching 7,000 vehicles. The company also said it's on pace to meet its full-year production goal of 25,000 EVs. Investors will be looking for signs that Rivian is still on track to meet that lofty goal, but some analysts think it can be done ." What history shows: Rivian has only been a public company for about a year, but the company has posted smaller-than-expected losses in back-to-back quarters, according to FactSet. Beyond Meat is set to report earnings after the bell, followed by a conference call at 5 pm. ET. Last quarter: BYND cut its revenue outlook for 2022 and said it's trimming its workforce . This quarter: The company's revenue is expected to have declined by about 8% year over year, Refinitiv data shows. What CNBC restaurant reporter Amelia Lucas is watching: "Investors will be looking for signs that Beyond Meat is at least starting to right the ship. Shares of Beyond Meat have plummeted nearly 80% in 2022, as the novelty of plant-based meat appears to have worn off. On top of that, Beyond fired COO Doug Ramsey last month after he was arrested for allegedly biting a man's nose." What history shows: Bespoke data shows Beyond Meat has posted stronger-than-expected results just 15% of the time. In fact, the last time Beyond posted a bottom line number that beat estimates was in late 2019, according to FactSet. The stock also struggles on earnings days, averaging a loss of 4.35%, Bespoke data shows. Thursday Nio is set to report earnings overnight, followed by a conference call at 7 a.m. ET. Last quarter: NIO reported an increase in shipments, but still posted a wider-than-expected loss for the quarter. This quarter: The electric car maker is expected to report revenue growth of more than 30% on a year-over-year basis, according to Refinitiv. What CNBC electric vehicles reporter John Rosevear is watching: "Nio shares may be down 63% for the year, but the electric vehicle maker heads into this week's report with some momentum. On Thursday, the company said it resumed production at two of its factories in China after halting operations due to Covid restrictions." What history shows: Nio has posted bigger-than-expected quarterly losses in two of the last three quarters, FactSet data shows. However, the company's results have outperformed expectations in six of the last 10 quarters. — CNBC's Michael Bloom contributed reporting.