These companies reporting earnings next week have a history of beating expectations
Several companies are due to report earnings next week, including some potential standouts. Earnings season is ramping up, with 22% of S & P 500 members expected to post their quarterly results next week. So far, most of the constituents that have reported third-quarter earnings have exceeded earnings and revenue expectations, according to FactSet. Against this backdrop, CNBC Pro screened Bespoke Investment Group data to find names reporting next week that tend to positively surprise investors and boast strong post-earnings performances. The companies below have exceeded the Street’s earnings per share expectations 70% of the time and risen 2% or more on earnings day. Here are the names that met this criteria: ServiceNow tends to make the biggest post-earnings gain of the list at about 3.3%, the data shows. The enterprise software giant also has the most reliable historical earnings performance, beating analysts’ earnings per share estimates 90% of the time. Wells Fargo analyst Michael Turrin is bullish on the stock. He recently reiterated his overweight rating on ServiceNow and raised his price target on the stock to $1,025 per share from $935. That new call suggests more than 11.5% potential upside for the stock, which is up 30.3% this year. “We continue to focus on the highest quality franchises, and are tending toward those businesses with strong platform positioning, balanced growth profiles, and management teams with proven track records —of which NOW meets all three criteria,” Turrin said in an Oct. 6 note to clients. He added that ServiceNow’s Xanadu product release is a “major step forward” in building the company’s AI vision. ServiceNow announced on Monday it would invest $1.5 billion in the U.K. over the next five years, as it grows its U.K. business amid greater data center infrastructure and AI demand. Power circuits maker Monolithic Power has a strong earnings beat rate of 88%. Shares of Monolithic Power are up more than 48.5% this year, outperforming the broader market. The stock tends to move about 2.6% on earnings day, per Bespoke. Monolithic is another name set to capitalize on AI-related growth, according to Oppenheimer analyst Rick Schafer. He named Monolithic among his top semi picks on Tuesday and said he expects leading AI-exposed companies to deliver upside results and outlook following the group’s correction year in 2023. Impinj also made the list, with its earnings beating expectations 88% of the time and the stock gaining 3.2% in an average post-report session. The company, which makes radio-frequency identification devices, has been a firecracker this year — gaining about 160.3% year to date. But analysts polled by FactSet think shares may take a dive, as their consensus price target that implies roughly 13.6% downside ahead. Still, they have a consensus buy rating on the stock. PI YTD mountain Impinj stock.
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