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The Q2 earnings season is just around the corner, with the big banks kicking the period into a much higher gear starting this Friday with their results. The overall earnings picture has remained stable leading up to the period, with Tech expected to deliver another big showing.
Of course, there are some worthy reports that investors should keep on their radars, a list that includes beloved Nvidia (NVDA - Free Report) , McDonald’s (MCD - Free Report) , and Discover Financial Services (DFS - Free Report) .
With Nvidia, we’ll get some more color on the AI trade, whereas MCD and DFS can provide us with deeper views into the current state of consumers.
Let’s take a closer look at how each presently stacks up heading into their respective releases.
Nvidia’s Results to Confirm AI Bullishness
Nvidia’s robust performance over the last year has been driven by unrelenting demand for chips used in AI applications. The stock continues to sport a favorable Zacks Rank #1 (Buy) thanks to a notably bullish outlook across all timeframes.
Investors will be tuned into the company’s Data Center results, which include sales from its AI chips. The company has consistently blown away our consensus estimates regarding the metric, with the most recent beat totaling a sizable $1.8 billion.
As shown below, all four of the most recent beats have been more than $1.4 billion, reflecting the company’s red-hot demand.
Image Source: Zacks Investment Research
Concerning headline figures, consensus estimates for both the top and bottom line have moved higher over the last several months. Enormous growth is expected, with the current estimates suggesting a 130% pop in earnings on a 110% sales increase.
Nvidia’s sales growth has been remarkable, posting triple-digit percentage year-over-year increases in each of its last four quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Discover Financial Services Enjoys Loan Growth
DFS shares have loosely tracked the broader market in 2024, gaining roughly 18% compared to an 18.5% gain from the S&P 500. Shares enjoyed post-earnings positivity following its latest release despite falling short of EPS expectations, with favorable segment results enough to please investors.
Image Source: Zacks Investment Research
Analysts have taken a bullish stance for the quarter to be reported, with the $2.99 per share consensus estimate up 8% since April. Revenue expectations have moved similarly, moving 2% higher to $4.2 billion over the same timeframe.
Image Source: Zacks Investment Research
Although the company’s net charge-off rate moved higher to 4.9% throughout its latest quarter, the CEO noted that delinquencies were stabilizing. Loan growth was notably positive throughout the same period, moving 12% higher to $126.6 billion.
McDonald's Faces Consumer Pressure
MCD shares have displayed considerable weakness year-to-date, losing roughly 16% in value and widely underperforming. Shares haven’t been able to sustain positivity following quarterly results, with consumers seemingly growing tired of elevated prices.
Image Source: Zacks Investment Research
Earnings expectations moved lower following its latest release but have since remained stable, with the $3.10 Zacks Consensus EPS estimate suggesting a 2% pullback relative to the same period last year. Revenue expectations have similarly moved lower, with the $6.7 billion expected down from the $6.8 billion estimate in late April.
Image Source: Zacks Investment Research
CEO Chris Kempcinski noted the recent consumer stubbornness but remained positive, stating, “As consumers are more discriminating with every dollar that they spend, we will continue to earn their visits by delivering leading, reliable, everyday value and outstanding execution in our restaurants. As we look to the rest of 2024 and beyond, we remain focused on leveraging the competitive advantages within our Accelerating the Arches plan and growing QSR market share to drive long-term growth.”
Nonetheless, elevated prices have aided the company’s margins in a big way, as we can see illustrated below. Please note that the chart is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Bottom Line
The Q2 earnings season has already officially started, but this Friday’s big bank results will really kick the period into high gear.
The earnings picture has largely remained stable, with tech expected to flex strong growth yet again.
And a few notable releases that investors should keep an eye on include Nvidia (NVDA - Free Report) , McDonald’s (MCD - Free Report) , and Discover Financial Services (DFS - Free Report) .
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3 Key Reports to Watch This Earnings Season
The Q2 earnings season is just around the corner, with the big banks kicking the period into a much higher gear starting this Friday with their results. The overall earnings picture has remained stable leading up to the period, with Tech expected to deliver another big showing.
Of course, there are some worthy reports that investors should keep on their radars, a list that includes beloved Nvidia (NVDA - Free Report) , McDonald’s (MCD - Free Report) , and Discover Financial Services (DFS - Free Report) .
With Nvidia, we’ll get some more color on the AI trade, whereas MCD and DFS can provide us with deeper views into the current state of consumers.
Let’s take a closer look at how each presently stacks up heading into their respective releases.
Nvidia’s Results to Confirm AI Bullishness
Nvidia’s robust performance over the last year has been driven by unrelenting demand for chips used in AI applications. The stock continues to sport a favorable Zacks Rank #1 (Buy) thanks to a notably bullish outlook across all timeframes.
Investors will be tuned into the company’s Data Center results, which include sales from its AI chips. The company has consistently blown away our consensus estimates regarding the metric, with the most recent beat totaling a sizable $1.8 billion.
As shown below, all four of the most recent beats have been more than $1.4 billion, reflecting the company’s red-hot demand.
Image Source: Zacks Investment Research
Concerning headline figures, consensus estimates for both the top and bottom line have moved higher over the last several months. Enormous growth is expected, with the current estimates suggesting a 130% pop in earnings on a 110% sales increase.
Nvidia’s sales growth has been remarkable, posting triple-digit percentage year-over-year increases in each of its last four quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Discover Financial Services Enjoys Loan Growth
DFS shares have loosely tracked the broader market in 2024, gaining roughly 18% compared to an 18.5% gain from the S&P 500. Shares enjoyed post-earnings positivity following its latest release despite falling short of EPS expectations, with favorable segment results enough to please investors.
Image Source: Zacks Investment Research
Analysts have taken a bullish stance for the quarter to be reported, with the $2.99 per share consensus estimate up 8% since April. Revenue expectations have moved similarly, moving 2% higher to $4.2 billion over the same timeframe.
Image Source: Zacks Investment Research
Although the company’s net charge-off rate moved higher to 4.9% throughout its latest quarter, the CEO noted that delinquencies were stabilizing. Loan growth was notably positive throughout the same period, moving 12% higher to $126.6 billion.
McDonald's Faces Consumer Pressure
MCD shares have displayed considerable weakness year-to-date, losing roughly 16% in value and widely underperforming. Shares haven’t been able to sustain positivity following quarterly results, with consumers seemingly growing tired of elevated prices.
Image Source: Zacks Investment Research
Earnings expectations moved lower following its latest release but have since remained stable, with the $3.10 Zacks Consensus EPS estimate suggesting a 2% pullback relative to the same period last year. Revenue expectations have similarly moved lower, with the $6.7 billion expected down from the $6.8 billion estimate in late April.
Image Source: Zacks Investment Research
CEO Chris Kempcinski noted the recent consumer stubbornness but remained positive, stating, “As consumers are more discriminating with every dollar that they spend, we will continue to earn their visits by delivering leading, reliable, everyday value and outstanding execution in our restaurants. As we look to the rest of 2024 and beyond, we remain focused on leveraging the competitive advantages within our Accelerating the Arches plan and growing QSR market share to drive long-term growth.”
Nonetheless, elevated prices have aided the company’s margins in a big way, as we can see illustrated below. Please note that the chart is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Bottom Line
The Q2 earnings season has already officially started, but this Friday’s big bank results will really kick the period into high gear.
The earnings picture has largely remained stable, with tech expected to flex strong growth yet again.
And a few notable releases that investors should keep an eye on include Nvidia (NVDA - Free Report) , McDonald’s (MCD - Free Report) , and Discover Financial Services (DFS - Free Report) .