Surprises To Expect: Morgan Stanley, Intel and Netflix

Surprises To Expect: Morgan Stanley, Intel and Netflix

All of Proximilar’s forecasts for both this and next week of the earnings calendar are now available on our site. (Just go to proximilar.com and click the green See All Forecasts button.) Our AI’s earnings estimates paint an optimistic picture: almost 300 companies will report earnings during this period, but only for 20 of these stocks the expected surprises are negative. Our models clearly expect the strength of the Q2 economic recovery to translate into impressive corporate performances.

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Today’s press release from Goldman Sachs (GS) vindicated our AI’s prediction of a large earnings beat. Likewise, we expect other large financials to post strong results, including Morgan Stanley (MS) with a projected $0.25 EPS surprise. Citigroup (C), which reports tomorrow, and Capital One (COF) are also expected to outperform EPS estimates by a meaningful margin.

Likely winners

Our AI expects Intel (INTC) to beat the earnings consensus by about $0.10 and beat the mean revenue estimate by over $700 million. Similarly, we project a compelling performance by AT&T (T) with a beat of not just the EPS expectations but also the earnings whisper number, as well as a $800+ million outperformance on revenues.

Microsoft (MSFT), Verizon (VZ) and Bank of America (BAC) are likely to post modest wins. They should clear the consensus bar, but not by a very wide margin. We anticipate a similar degree of outperformance from Johnson & Johnson (JNJ) and Coca-Cola (KO).

Our models expect big things from materials companies like Dow (DOW) and Alcoa (AA). Both of them should beat Wall Street’s targets by substantial margins, likely matching or exceeding their earnings whispers.

Trouble ahead?

The giants we worry about are Netflix (NFLX) and Novartis (NVS). Our AI predicts that they will struggle to outperform expectations, especially on the revenue side.

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