Earnings Report Season Begins with Big Banks and Netflix

The second-quarter earnings season is about to kick off, with big banks and streaming giant Netflix leading the pack. Expectations are a bit tempered as companies navigate through changing tariff landscapes. According to FactSet, S & P 500 earnings for the second quarter are projected to show a 4.8% growth from the same period last year, which would be the slowest growth rate since the fourth quarter of 2023.

Starting off the week, JPMorgan Chase is set to report earnings before the bell on Tuesday, followed by a conference call at 8:30 a.m. Last quarter, JPMorgan reported earnings and revenue that surpassed expectations, but CEO Jamie Dimon warned of challenges ahead. Analysts polled by LSEG are predicting a significant year-over-year decrease in earnings for this quarter. Despite this, Bank of America analyst Ebrahim Poonawala anticipates solid results for JPMorgan. The company has a history of surpassing earnings estimates in the last five quarters, according to Bespoke Investment Group.

Wells Fargo will also be reporting earnings premarket on Tuesday, with a conference call scheduled for 10 a.m. The bank had shares fall last quarter due to lower-than-expected revenue and a decline in net interest income. This quarter, revenue is expected to have stayed the same year over year. Historically, Wells Fargo has beaten earnings estimates in eight of the last nine quarters.

Citigroup is on deck to report earnings before the stock market opens on Tuesday, with an analyst call set for 11 a.m. Last quarter, Citigroup’s results beat expectations thanks to strong fixed income and trading revenue. Analysts are expecting a 5% increase in earnings year over year for this quarter. Bespoke data shows that Citigroup beats Wall Street analysts’ earnings estimates 78% of the time.

On Wednesday, Bank of America will be reporting earnings in the premarket, followed by a call at 8 a.m. Last quarter saw strong net interest income and trading revenue leading to results surpassing expectations. Analysts are expecting earnings and revenue to have grown by less than 5% year over year for this quarter. Historically, Bank of America tops earnings expectations 80% of the time.

Johnson & Johnson is also set to report earnings before the opening bell on Wednesday, with a conference call scheduled for 8:30 a.m. Last quarter, a surge in medical device sales led to JNJ beating earnings estimates. For this quarter, earnings are expected to have declined by nearly 5%. Johnson & Johnson has beaten earnings expectations every quarter since 2011, according to Bespoke.

Morgan Stanley will report their latest financial results premarket on Wednesday, followed by a call with analysts and investors at 8:30 a.m. Last quarter, their earnings beat expectations with a significant increase in equity trading revenue. Analysts are projecting earnings and revenue to increase by more than 6% each for this quarter. Historically, Morgan Stanley shares average a 1% advance on earnings days.

Goldman Sachs is set to report earnings in the premarket on Wednesday, followed by a call at 9:30 a.m. Last quarter, a surge in equities trading revenue led to GS topping expectations. This quarter, the bank is expected to report a 10% increase in earnings from the year-earlier period. Goldman shares have seen a 23% increase this year.

On Thursday, Netflix will report earnings after the stock market closes at 4:00 p.m., with a call for analysts and investors scheduled for 4:45 p.m. Last quarter, Netflix posted a large earnings beat as revenue grew by 13%. Analysts are expecting a 45% year-over-year increase in earnings for this quarter. Investors will be looking for updates on Netflix’s ad-tier, subscriber trends, and live content strategy.

Overall, the earnings season is off to an exciting start with big names in banking and streaming set to report their quarterly performances. It will be interesting to see how these companies have navigated the challenges and opportunities in the current economic landscape.