Earnings Reports You Can't Miss This Week
Tesla
Tesla will post its financial results for the second quarter of 2023 after the market close on Wednesday, July 19, 2023, with analysts estimating earnings per share of 0.7882 and revenues of $24.29 billion. Tesla exceeded earnings expectations in the previous quarter due to strong revenues from the Energy Generation/Storage and Services/Other segments. The company has consistently beaten estimates in the past four quarters.
Tesla delivered 466 140 cars in Q2, surpassing expectations and benefiting from higher demand for Models 3 and Y. The reason is that the company offered discounts in various markets to boost demand.
Analysts predict Tesla's Energy Generation/Storage and Services/Other revenues growth. Based on a positive earnings outlook, Tesla is expected to outperform estimates.
However, In the second quarter of 2023, the average inventory for electric vehicles (EVs) topped more than 92,000 units on the ground at dealer lots, according to the 2023 Cox Automotive Mid-Year Review presentation. This is up 342 percent compared to the second quarter of 2022. During this period, the new “EV days’ supply,” which refers to the average number of days a warehouse holds inventory before selling it, rose 166% to 92 days from 38.5 days.
Estimated EPS: 0.7882
Estimated Revenue: $24.29B
- If the results are well above expectations, the price will likely break the descending trendline and skyrocket to 415.00.
- Conversely, a pullback to 260 and 220.00 may happen before the rally continues.
Netflix
Analysts hold contrasting views on Netflix's upcoming earnings report, which will be released after the market close on Wednesday, July 19, 2023. Analysts expect Netflix to report 3.6 million subscriber additions for the June quarter, up from the previous forecast of 1.4 million. The optimism is driven by positive data on paid sharing, which suggests that Netflix's crackdown on account sharing is yielding positive results. Paying sharing will contribute to a revenue uplift of over 5% and enhance advertising opportunities.
Estimated EPS: 2.84
Estimated Revenue: $8.27B
- If the results are well above expectations, the price will accelerate toward 512.00 to close the gap from December 2021. If buyers could hold the stock above the 495.00 - 512.00 for a couple of weeks, the uptrend will gain momentum, and the stock will move to 700.00.
- Conversely, the stock will decline to 365.00.
Goldman Sachs
The Goldman Sachs Group, Inc. plans to announce its Second Quarter 2023 financial results before the market opens on Wednesday, July 19, 2023. Analysts predict a significant profit and revenue growth decline due to the current economic environment. Revenue expectations are concerning, with sales predicted to slump 9.5% year-over-year to $10.66 billion, reflecting ongoing macroeconomic challenges. Goldman Sachs is anticipated to show declines of 32% in investment banking revenue and 17% in trading compared to the previous year.
Given the negative impact of reduced global deal-making, merger activity, and IPO underwriting amid higher interest rates and economic uncertainty, CEO David Solomon is expected to be cautious about forecasting income growth for the coming months. Moreover, mergers and acquisitions revenue for the first half of 2023 had dropped 38% worldwide compared to last year, marking the weakest first half for deal-making since 2020, when the Covid crisis severely affected the global economy.
Estimated EPS: 3.46
Estimated Revenue: $10.66B
Since the overall sentiment is highly bearish, we don’t expect the GS stock to decline significantly. The crosspoint of the lower border of the symmetrical triangle with the 200-week MA (around 312.00) looks like a massive support and a great entry point for long trades. However, if the report overperforms expectations, the price may skyrocket to 355.00.
In this case, the best option would be to buy the stock on the breakout above the resistance trendline with the target at 423.00.
Summary
In conclusion, the upcoming financial results for Tesla, Netflix, and Goldman Sachs will have significant implications for their respective stock prices.
It is essential to closely monitor the financial results and the market's reaction to make informed investment decisions in response to these earnings reports.