The 2024 Q3 earnings season has kicked into a higher gear post the release of major banks’ results last Friday. Despite recent downward revisions, positive earnings growth is anticipated, diverging from the trend observed in previous quarters.
For updates on all quarterly releases, keep track of Zacks Earnings Calendar.
Let’s delve into a few significant companies – Taiwan Semiconductor Manufacturing TSM, Netflix NFLX, and American Express AXP – scheduled to report this week.
Anticipated Growth for TSM Amid AI Surge
Taiwan Semiconductor, currently sitting at Zacks Rank #2 (Buy), has witnessed a bullish shift in earnings outlook post encouraging quarterly results showcasing robust demand. With shares soaring 80% year-to-date, TSM is outperforming significantly.
The upcoming quarter’s outlook remains optimistic, with the Zacks Consensus EPS estimate at $1.74, marking a 7% increase since mid-July and projecting 35% year-over-year growth. Anticipated sales of $22.7 billion signal a 31% rise from the same period last year.
Experiencing heightened demand catalyzed by the AI boom due to its significant role in chip manufacturing, TSM reflects strong forecasted growth rates.
Image Source: Zacks Investment Research
Post the Q2 results, TSM provided a positive statement for its ongoing quarter (Q3), predicting, “Moving into the third quarter 2024, we foresee our business being buoyed by strong smartphone and AI-related demand for our cutting-edge process technologies.”
Decoding Netflix’s Growth Through Subscriber Additions
Subscriber metrics remain pivotal in the upcoming Netflix release, albeit the company’s decision to discontinue quarterly membership reporting starting from 2025 Q1. Holding a favorable Zacks Rank #2 (Buy), Netflix’s revisions for the imminent report have remained steady since mid-July.
A substantial growth surge is expected, with consensus forecasts hinting at a 36% EPS increase on 14% higher sales. Leveraging ad-supported membership options and a crackdown on password sharing have significantly benefitted the streaming giant.
Of notable mention is Netflix’s margin expansion, leading to increased profits in recent periods. Witnessing a reversal in margins from late 2022 lows, as depicted below, on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Insight into AXP’s Record Sales Growth
AXP’s projected earnings for the upcoming quarter have exhibited a bearish trend since mid-July, foreseeing a $3.27 per share earnings report. Noteworthy is the positive upturn from the initial estimate of $3.22 per share at the start of August.
While the overall revisions depict a negative trajectory, emphasizing recent positive revisions holds greater significance.
Image Source: Zacks Investment Research
AXP exhibited exceptional performance in the last period, achieving a record $16.3 billion in quarterly revenue. The company continues to witness robust customer growth, acquiring 3.3 million new cardholders, with double-digit fee revenue growth highlighting significant achievements.
Impressive quarterly sales growth can be observed in the chart below.
Image Source: Zacks Investment Research
In Conclusion
Amid the excitement of earnings season, companies unveil the narrative behind the scenes, providing a peek into their performance.
This week, the spotlight is on three key companies – Taiwan Semiconductor Manufacturing TSM, Netflix NFLX, and American Express AXP – as they gear up for their quarterly reports.
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