Morgan Stanley, Netflix, & United to Release Q3 Results

Markets are gearing up for another series of quarterly earnings releases. The firms expected to reveal their latest quarters’ results range from the banking sector to online entertainment, ensuring an interesting opening to earnings season. Let’s take a closer look:

Morgan Stanley to Ride Uptrend?

Morgan Stanley (MS) is scheduled to release its Q3 results on Thursday, 17 October, shedding some light on how a major player in the American financial sphere has grappled with a shifting economic landscape.

Many analysts are expecting an increase in both earnings and revenue from the venerable institution this coming Wednesday. Current forecasts suggest that the firm will report earnings per share (EPS) of $1.57, a 13.8% rise from the same quarter last year, alongside projected revenues of $14.28 billion, reflecting growth of over 7% year-over-year. How these actual figures compare to predictions will be crucial in determining short-term market reactions, with the stock potentially moving based on any surprises in the results.

Investors will also possibly be paying attention to management’s comments during the earnings call, as these discussions will likely provide insight into future business conditions. Though predicting results ahead of time is never 100%, Morgan Stanley’s historical trend of outperforming estimates may influence market sentiment in the lead-up to the release. So far this year, the firm's shares have gained just under 30% in value; whether this trend continues following its third-quarter earnings call remains to be seen. (Source: Yahoo Finance)

Netflix Hits Play

Entertainment trailblazer Netflix (NFLX) is expected to share its Q3 results with the public on 17 October following the end of the trading day. Savvy market watchers reportedly foresee jumps in revenue, profit, and subscriber numbers compared to 2023’s figures. Projections suggest revenue will reach $9.77 billion, up 14% year-over-year, while net income is expected to rise to $2.23 billion, an increase of one-third.

Subscriber growth remains a key focus for the quarter, with Netflix expected to report nearly 286 million active users, an increase of around 4 million from the previous quarter. The company has successfully boosted subscriptions through its password-sharing crackdown. However, Netflix is reportedly moving to cease reporting subscriber data next year, shifting its focus to revenue and other financial indicators. As it stands now, analysts and market floor traders alike may continue to closely watch the company's performance, particularly as it expands into live sporting events. Netflix shares are up 48% so far in 2024, but that's no guarantee that their skyward trend will continue following Thursday's earnings call. Stay tuned! (Source: Investopedia)

United to Take Flight?

Major aviation industry player United Airlines (UAL) is set to release its third-quarter earnings on Tuesday, 15 October, with analysts projecting a decline in earnings alongside an increase in revenue compared to the same period last year. The airline is expected to report earnings per share of $3.11, an increase of almost 15% since last year, while revenues are forecasted to rise 2.8% to $14.88 billion. Investors will closely watch whether United can exceed these expectations, as the stock could move based on any surprises.

While the consensus outlook is important, the actual earnings and management’s commentary on business conditions will heavily influence the stock's performance. United has a strong track record of surpassing earnings estimates, beating expectations in each of the past four quarters. This history, along with recent analyst revisions suggesting optimism about United’s prospects, points to the potential for a positive surprise, making the upcoming report a key event for traders and investors. However, unexpected results are always a possibility, and there's no guarantee that tomorrow's earnings call will provide numbers that encourage traders to continue pushing UAL shares skyward.

In Conclusion

2024’s third-quarter earnings season could hold surprises for traders and investors alike, with estimates galore, but the final numbers still shrouded in mystery as of the time of writing. Market watchers from Wall Street to Wellington will have to wait and see how this week’s figures pan out.