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Get Charged Up For Tesla, Airlines: Investing Action Plan

Here’s your Investing Action Plan: what you need to know as an investor for the coming week. Get ready for electric-vehicle leader Tesla. Tesla earnings are due out this coming week as the company will release its much anticipated Q3 earnings report. Airlines, too, continue to give investors a glimpse at how travel is coming back from the Covid-19 slowdown.




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Five Stocks Near Breakouts

General Motors (GM), Expedia (EXPE), Fortinet (FTNT), Innovative Industrial Properties (IIPR) and Advanced Micro Devices (AMD) are all closing in on official breakouts, with the stock market back in a confirmed uptrend. GM, Fortinet, Innovative Industrial Properties and AMD stock have all offered early entries in recent days, with all but GM still actionable from those levels.

Tesla to report Q3 earnings

Tesla (TSLA) will report Q3 earnings after the market close Wednesday. The electric-vehicle maker has already reported strong deliveries and China sales for the quarter, despite chip shortages. FactSet analysts see Tesla earnings of $1.50 per share, nearly double the year-ago period, on a 54% surge in revenue to $13.5 billion. Analysts see revenue from regulatory credits coming in at $368 million, above last quarter’s $354 million but below Q1’s $518 million.

More Airlines Report

United Airlines (UAL) reports Q3 earnings on Tuesday, while Southwest Airlines (LUV) reports on Thursday. Wall Street expects United to lose $1.59 per share, as revenue jumps 204% to $7.56 billion on a rebound in travel demand. Southwest is expected to lose 27 cents per share, with sales up 155% to $4.58 billion. The companies will report as the industry deals with rising fuel costs and hiring challenges, and after Southwest raised questions about its operations after it canceled scores of flights this month. Alaska Air (ALK) also reports during the week.

Netflix Looks For ‘Squid Game’ Lift

Internet television network Netflix (NFLX) will report Q3 results late Tuesday. Wall Street expects Netflix to post a bigger gain in subscriber growth thanks to its hit show “Squid Game.” Analysts expect Netflix to add 3.8 million streaming subscribers in the September quarter, vs. the company’s target of 3.5 million new subscribers. Analysts forecast Netflix earnings of $2.57 a share on sales of $7.48 billion. That would translate to year-over-year growth of 48% in earnings and 16% in sales. For the December quarter, analysts think Netflix will add 8.45 million new subscribers amid a busy release schedule of new movies and TV shows.

ASML Earnings Seen Rising 54%

Semiconductor equipment maker ASML (ASML) plans to release its Q3 results early Wednesday. Analysts expect the Dutch lithography gear specialist to earn $4.61 a share on sales of $6.19 billion. That would translate to year-over-year growth of 54% in earnings and 33% in sales. ASML is benefiting from heightened capital spending by chipmakers on new equipment to increase capacity during the current chip shortage.

Hospital Stocks In Focus

Tenet Healthcare (THC) is due to report Q3 results after Wednesday’s close, followed by HCA Healthcare (HCA) ahead of Friday’s open. Going into the earnings period, the impact of the summer Covid wave on high-margin elective procedures is one source of uncertainty. The impact of staffing shortages on wages and inflation, in general, is another. Analysts expect Tenet EPS to jump 70% to $1.09 from a weak year-ago period. Revenue should grow 6% to $4.83 billion, according to Zacks Investment Research. The Street expects HCA profit to more than double to $3.92 as revenue climbs nearly 9% to $14.47 billion.

Steel Earnings Flex Strength

Steel Dynamics (STLD) reports quarterly results after Monday’s close. Nucor (NUE) reports late Thursday. Steel Dynamics and Nucor indicated in mid-September that they were each on track for a record quarter. Analysts see Steel Dynamics’ EPS exploding to $4.95 from 51 cents a year ago. They expect revenue to more than double to $4.99 billion. The Street also projects Nucor will earn $7.21 per share, up more than 900% from 63 cents a year ago, as revenue doubles to $10.1 billion.

In Brief

  • SVB Financial Group (SIVB) will report Q3 financial results late Thursday. FactSet analysts see EPS sliding 34% from a year ago to $5.58 on a 23% sales increase to $1.3 billion.
  • Crocs (CROX), a footwear company, will report Q3 earnings ahead of the market open Thursday. FactSet analysts expect earnings of $1.84 per share, nearly double the year-ago period, on sales of $605.6 million, a 67% surge.
  • Verizon Communications (VZ) reports Q3 earnings early Oct. 20. Analysts estimate adjusted EPS of $1.36, up about 9% from a year earlier. Revenue is expected to grow about 6% to $33.3 billion. A Dow component, Verizon stock has underperformed despite its dividend.
  • AT&T (T) reports Q3 earnings before the market open on Oct. 21. Analysts estimate EPS of 78 cents, up 2.6% from a year earlier. Revenue is expected to fall 1% to $41.7 billion. AT&T stock recently hit a 10-year low. Telecom stocks have been pressured by intensifying wireless competition as cable TV firms gain share.
  • Nasdaq (NDAQ) on Wednesday is expected to report nearly 12% higher Q3 EPS of $1.71. Revenue at the leading operator of financial trading platforms is seen jumping more than 16% to nearly $832 million.
  • Canadian Pacific (CP) is seen posting Q3 EPS of 74 cents, up 19%, on revenue of $1.59 billion, up 12% early Wednesday. Late Wednesday, CSX (CSX) should see earnings rise 18% to 38 cents per share, with revenue growing 16% to $3.06 billion. Early Thursday, Union Pacific (UNP) is likely to post a 24% EPS increase to $2.48 as sales grow 10% to $5.41 billion.
  • AutoNation (AN) early Thursday is likely to disclose Q3 EPS of $4.20, up 77%, on revenue of $6.36 billion, up 18%. Early Wednesday, Lithia Motors (LAD) should see earnings jump 34% to $9.24 per share, as revenue leaps 60% to $5.78 billion. Also early Wednesday, Penske Auto Group (PAG) should post EPS of $3.52, up 23%, on sales of $6.53 billion, up 9%.
  • American Express (AXP) early Friday should post Q3 EPS of $1.70, up 31%, on sales of $10.54 billion, up 20%. Late Tuesday, Capital One (COF) is likely to increase earnings 4% to $5.25 per share with sales rising 1% to $7.45 billion.
  • Apple (AAPL) is likely to introduce new MacBook Pro notebook computers and AirPods 3 wireless earbuds at its second product launch event this fall. It will stream the “Unleashed” event starting at 10 a.m. Pacific time on Monday.
  • Lam Research (LRCX), a semiconductor equipment vendor, will report September-quarter results on Wednesday. Lam is seen earning $8.23 a share, up 45%, on sales of $4.32 billion, up 36%. Chipmaker Intel (INTC) will report Q3 results on Thursday. Intel is seen earning $1.11 a share, unchanged, on sales of $18.24 billion, down a fraction.
  • Intuitive Surgical (ISRG) late Tuesday is expected to report adjusted Q3 profit of $1.17 per share on $1.39 billion in sales, up a respective 27% and 29% year over year.
  • Biogen (BIIB) is seen reporting adjusted Q3 profit of $4.12 per share and $2.67 billion in sales early Wednesday. Earnings would tumble 54% and sales would fall nearly 21% as Biogen’s multiple sclerosis drug, Tecfidera, faces new generic rivals. The third quarter will also be the first Biogen reports sales of its new Alzheimer’s drug, Aduhelm.
  • Pool (POOL), a seller of pool maintenance goods, on Thursday is expected to post 42% higher Q3 EPS of $3.87. Revenue is seen jumping nearly 21% to $1.37 billion.

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