These companies reporting earnings next week have momentum on their side
Third-quarter earnings season continues next week, and several companies gearing up to share their latest financials have the wind at their back in terms of rising estimates from analysts, including Robinhood and Palantir Technologies . Corporate profits have been strong over the past few weeks, with 82% of the S & P 500 companies reporting numbers so far beating Wall Street consensus earnings estimates, FactSet data shows. Two of the most notable examples: Alphabet earlier this week notched revenue of $102.35 billion and earnings of $3.10 per share in its September quarter, topping analysts’ expectations of $99.89 billion and $2.33, respectively, according to LSEG data. Meta Platforms on Wednesday booked revenue of $51.24 billion and adjusted earnings of $7.25 per share, higher than the Street’s estimates of $49.41 billion and $6.69 per share. (Meta stock fell about 9% on investors’ concerns the firm is “aggressively” spending on artificial intelligence.) Scanning for potential winners, CNBC Pro looked at companies that have positive momentum ahead of their financial releases. Specifically, we screened for stocks meeting the following criteria: At least 15 upward earnings estimate revisions in the past 3 months Average EPS estimate up 10% or more in the past three- and six months Reporting next week Here are a few of the companies reporting earnings next week that have momentum on their side. Robinhood Robinhood is estimated to earn 54 cents a share in the third quarter after 27 upward revisions to the Street’s consensus forecast in recent months. The current estimate is up 76% from three months ago and 81% higher than the average EPS estimate six months ago. Analysts raised their forecasts for the trading platform’s earnings, citing growth in its prediction market. “We now model the revenue contribution from prediction markets to reach $155mn next year,” Deutsche Bank analysts said in a September note to clients. “All-in, following a catch call with [investor relations] and the positive September metrics, with good business execution across key revenue arenas, we made several changes to our model.” Robinhood shares are ahead 30% and 181% over the past three and six months, respectively. Palantir Technologies Analysts have raised their Palantir earnings estimates 20 times in three months, putting the software company’s average estimated earnings at 17 cents per share. That estimate is 18% higher than it was three months ago and up 22% from six months ago. Wall Street hiked its forecasts for Palantir due to the company’s strong relationship with the U.S. government, in addition to its progress on commercial deals. “We expect another strong quarter, seeing positive checks across Government and Commercial businesses,” Citigroup analysts said Monday in a note to clients. Palantir is up 23% in the past three months, and 64% over the past half year. Ralph Lauren Wall Street has listed its Ralph Lauren earnings estimates 24 times in three months, pushing the clothing and accessories manufacturer and retailer to an expected $3.45 per share in third-quarter earnings per share. That’s up 20% from three months ago and 23% higher in six months. Ralph Lauren is ahead by 44% in the past six months and 60% in the past year.
