The Most Anticipated Earnings Reports This Week

Earnings season is always an important time for investors to get a glimpse into how major companies are doing and what to expect from them going forward. Many times, we see large stock price swings after a company reports its earnings. We could be in store for even bigger moves than usual this quarter, as the market comes to terms with the real financial impacts of the coronavirus.

This week, there are several intriguing earnings reports to look out for. Some of these companies will provide us insight into the gravity of the situation and let us know which industries are benefiting the most from the current economic conditions. Below, we are going to walk you through the most anticipated earnings reports this week and what to look out for with each company.

Netflix (NASDAQ:NFLX)

A lot of companies have suffered greatly as a result of the coronavirus, while others have experienced a solid bump in their share prices. Netflix is a nice example of a company that is perfectly suited to succeed during the coronavirus era. Their business model is built around their streaming media platform, which has seen a large uptick in usage during the global health crisis. Analysts are expecting earnings per share to have grown substantially year-over-year for this streaming giant.

Since more and more people are staying indoors, it makes sense that Netflix will see a boost in new subscribers. Analysts are anticipating 17% year over year subscriber growth, which is quite large considering that Netflix already had a large subscriber base. The real question about their earnings when they are released after market close on Tuesday, April 21 is whether or not analyst expectations are too optimistic. Try to listen for management’s comments about the halted production of new content, which is a big part of Netflix’s competitive advantage. Anything less than stellar EPS growth and large subscriber growth can potentially send Netflix’s stock price downwards.

Delta Airlines (NYSE:DAL)

Delta Airlines is another company that many are watching this week ahead of its earnings report before the market open on Wednesday, April 22^nd. The demand for air travel has dropped to unprecedented levels as a result of the global health crisis. People just aren’t flying at the moment, and it’s hard to imagine the demand for air travel increasing rapidly back to normal levels in the coming months.

We’ve already heard Delta’s CEO state that they are losing $60 million a day as a result of the health crisis. It will be very interesting to see just how much revenue major airlines like Delta have lost thus far. This is an industry that might be in big trouble, even with the federal government’s financial aid packages. We know that Delta is going to report an EPS loss, with the consensus EPS forecast for the quarter at $-0.72. However, remember that this is the first earnings report for major airline companies like Delta since the crisis began, so the numbers might get worse next quarter before they get better. Delta’s earnings report will help us understand just how much trouble the major airlines are in going forward and give us more clarity about any cash flow issues that they might be experiencing.

Domino’s Pizza (NYSE:DPZ)

Investors are very interested to see what is happening with takeout and delivery food service companies during the coronavirus shutdown. It’s safe to say that demand for these types of businesses has increased to record levels, and we’ve seen stocks like Domino’s Pizza outperform the overall market during the recent selloff as a result. This major pizza company’s earnings report will help investors learn just how much of an increase in demand the industry is getting as a result of stay-at-home orders.

Keep in mind that most Domino’s physical stores are intended for carry out or delivery, which means they aren’t being impacted by the coronavirus like restaurants with dine-in locations are. There will certainly be winners that come out of the coronavirus crisis, and Domino’s is likely to be one of them. Take a look at their numbers for sales growth and how quickly they will be reopening stores outside of the US to get a better idea of just how much room upwards Domino’s stock price has going forward.

Historic Times

It’s safe to say that this quarter of earnings reports might just be the most important earnings season of all time. All eyes are on companies like Netflix, Delta Airlines, and Domino’s Pizza as the market looks to find winners amongst the chaos and make sense of just how large the impact of the coronavirus will be.