Mixed Bag of Earnings This Week

Author: Gary Ashton

Estimated read time: 2 minutes

Publication date: 26th Nov 2019 12:01 GMT+1

Earnings season rolls on this week with a mixed bag of earnings ratings from Finscreener.com. According to our data, no fewer than 12 large-cap S&P 500 stocks (market capitalization higher than $10 billion) will report results this week. Of those 12 names, a surprising 5 have “Strong Buy” earnings ratings, and only one Autodesk Inc. (NYSE: ADSK) has a “Strong Sell” rating. The view is understandable given Autodesk’s recent results. The company missed analysts’ estimates by more than 12% in the second quarter of this year, and analysts have revised down third-quarter estimates by more than 16% in the last 90 days.

Industrial Names Under Pressure While Tech Poised to Outperform

The most significant name (measured by market cap greater than $50bn) to report this week is Deere & Co (NYSE: DE) with a “Sell” earnings rating from Finscreener.com. The company’s earnings record is particularly poor, with six negative quarterly earnings surprises in a row. Analysts could be in for a seventh negative surprise despite a 3.62% downward revision to this quarter’s earnings expectations of $2.13 per share. The stock has also underperformed the market, rising 18.42% this year compared to nearly 24% for the broader S&P 500 index.

One name that could surprise analysts yet again is Hewlett Packard Enterprise Company (NYSE: HPE). The company has delivered, mostly double-digit, positive earnings surprises for the last two years running. This quarter could be yet another Wall Street beat, with analysts revising up their expectations by 4.55% in the previous 90 days. They now expect EPS of $0.46 which is a 7% increase from the same quarter last year.

Use Finscreener’s Earnings Calendar to Follow the Action

You can follow all the results using our Earnings Calendar. To see the same three stocks mentioned in this blog, choose “S&P 500” from the market down in the upper left of the page. Next, to filter down our names, select “Large ($10bn - $200 bn)” from the market cap down box in the same upper left part of the webpage. Finally, if not already selected, choose “This Week” in the middle of the page on the left. When finished, you should be able to see the same three stocks mentioned here.

Disclaimer: The writer is an experienced financial consultant who writes for Finscreener.org. The observations he makes are his own and are not intended as investment or trading advice.