Third Quarter Earnings Calendar – Forbes AdvisorOctober 13, 2021
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The U.S. stock market has just come out of its worst month since March 2020, and rattled investors may need to buckle up for more turbulence in the weeks ahead. That’s because earnings season begins in mid-October—a multi-week period that brings additional volatility to the stock market.
Companies in the S&P 500 are expected to report quarterly earnings that are nearly 28% higher than the same quarter one year ago, according to analysts’ estimates. That’s more than double the five-year average earnings growth rate of 11.8%, according to figures compiled by FactSet. With only about 12 weeks left in the year, investors will also be keen to hear from company executives about the outlook for 2022.
The biggest theme that’s likely to be a focus in earnings reports? “The continued impact from supply chain disruptions,” says Bill McMahon, managing director and chief investment officer of active equity strategies at Charles Schwab. Many companies already have revised earnings guidance as a result of issues like congested ports, longer transit times from Asia and labor shortages—and more companies may do so, he adds.
Here’s what to expect week-by-week for 2021’s third quarter earnings season.
Earnings Season Week One—October 11-15
The reporting period for companies that adhere to a traditional calendar quarter, with a third quarter ending September 30, will kick off earnings season in the week of October 11. Just 19 companies in the S&P 500 are currently scheduled to report results this week, according to YCharts. The list is heavy on banks, with JPMorgan Chase, Bank of America, BlackRock, Citigroup and Morgan Stanley among the companies expected to report earnings.
Analysts are forecasting earnings growth of 17.2% for the financial sector in the third quarter, according to FactSet. This stock market sector is important to watch because it helps investors get a sense of the pace of broader economic growth, based on things like demand for loans and credit, McMahon notes. “Banks offer a good read on consumer and business spending.”
As longer-term interest rates—like the benchmark 10-year Treasury note—have started to increase, causing the yield curve to steepen, investors will be keen to hear from the biggest banks about the lending prospects for the current quarter and beyond, says Sam Stovall, chief investment strategist at CFRA Research.
Of particular note this week:
- Oct. 13: JPMorgan Chase (JPM—Financials). As the largest U.S. bank and one of the 10 largest companies in the S&P 500, JPMorgan is a bellwether for both the financial sector and the broader economy. The company is expected to report earnings per share for the quarter of $2.98, according to the consensus of analysts’ estimates compiled by YCharts.
- Oct. 13:…