History shows these stocks reporting earnings next week tend to beat expectations
Companies reporting next week such as Delta Air Lines and Bank of America have a track record of beating Wall Street’s earnings estimates. The fourth-quarter earnings season kicks off next week, with 14 companies in the S & P 500 slated to post results. It will be a busy period for both big banks and regionals. Stocks are often rewarded with a post-earnings bump if they share earnings or revenue that surprises Wall Street consensus to the upside. CNBC Pro screened data from Bespoke Investment Group to turn up the names that tend to surpass analysts’ expectations. The table below shows the companies reporting earnings next week that have beaten their earnings per share estimates at least 65% of the time in the past. Delta Air Lines reports its quarterly results next Tuesday. The company has historically topped analysts’ earnings estimates 69% of the time, and on average has risen 1.6% following each earnings report. On Monday, Goldman Sachs reiterated its buy rating on the stock ahead of its earnings release. Analyst Catherine O’Brien said she expects the company’s fourth-quarter earnings to come in at $1.48 per share, below FactSet’s consensus of $1.57. “Despite our unchanged outlook, we are raising our 12-month price target to $77… from $68 previously, as we believe the continued improvement in the demand backdrop (excluding the one-time impact of the US government shutdown) merits a further move back towards our pre-April 2025 target multiple when heightened macro and geopolitical uncertainty was driving reduced demand for air travel,” O’Brien wrote. The updated price target of $77 implies potential upside of 8% from Thursday’s close. Shares of Delta Air Lines have climbed about 18% over the past 12 months. Bank of America reports earnings next Wednesday. The bank has topped earnings estimates 80% of the time. However, its stock has averaged a 0.6% decline the day after its results are released. On Tuesday, HSBC upgraded the stock to a buy rating and lifted its price target to $50 from $45. “The recent pullback provides an opportunity to add exposure to a market leader with an attractive earnings and profitability outlook at an attractive valuation,” wrote analyst Saul Martinez. He noted that Bank of America trades at only 10.4-times 2026 estimated earnings. However, the bank’s new price target is approximately 11% below where shares closed on Thursday. The bank stock has surged roughly 21% over the past 12 months. Other names on the list include Morgan Stanley and Taiwan Semiconductor Manufacturing .
