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3 Quarterly Releases to Watch Next Week

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Earnings season is always an exciting time for investors, with companies finally revealing what’s transpired behind closed doors.

As usual, the big banks shifted the cycle into a much higher gear, with many other companies scheduled to follow suit.

And concerning next week’s docket, three notable companies reporting quarterly results include UnitedHealth (UNH - Free Report) , Johnson & Johnson (JNJ - Free Report) , and Discover Financial Services (DFS - Free Report) .

But how do headline expectations stack up heading into the releases? Let’s take a closer look.

UnitedHealth

UnitedHealth Group provides a wide range of healthcare products and services. The company has consistently posted results above expectations as of late, exceeding the Zacks Consensus EPS estimate by an average of 2.7% across its last four releases.

Analysts have shown positivity in their revisions for the release, with the $6.66 Zacks Consensus EPS estimate up a modest 1.7% since mid-January and suggesting 6% year-over-year growth.

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Image Source: Zacks Investment Research

Revenue expectations have primarily remained stagnant, with the $99.3 billion in sales suggesting an improvement of 8% from the year-ago period. UNH’s top line has shown consistent growth, as we can see in the chart below.

Zacks Investment Research
Image Source: Zacks Investment Research

Johnson & Johnson

Johnson & Johnson operates through pharmaceuticals, medical devices and consumer products divisions. Like UNH, the company has consistently posted positive surprises as of late, exceeding the Zacks Consensus EPS estimate by an average of 5% across its last four releases.

The $2.65 Zacks Consensus EPS estimate has primarily remained unchanged over the last several months, suggesting a pullback of 1.5% from the year-ago period. Revenue expectations have been revised modestly higher, up 0.5% to $21.4 billion and suggesting a 13.5% pullback year-over-year.

Zacks Investment Research
Image Source: Zacks Investment Research

It’s worth noting that JNJ shares have traded sideways over the last three years, essentially flat compared to the S&P 500’s impressive 31% gain.

Zacks Investment Research
Image Source: Zacks Investment Research

Discover Financial Services

Discover Financial Services is a digital banking and payment services company. DFS will be looking to snap a streak of negative surprises; the company has fallen short of the Zacks Consensus EPS estimate in each of its last four releases.

Analysts have been bearish for the quarter to be reported, with the $2.96 Zacks Consensus EPS estimate being revised 14% lower since mid-January and reflecting a pullback of 17% year-over-year.

Zacks Investment Research
Image Source: Zacks Investment Research

Revenue expectations have primarily remained stagnant, with the $4.1 billion expected suggesting an improvement of 8% from the year-ago period. The company’s sales have grown considerably over the last several years, as we can see illustrated below.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Earnings season is always an exciting time for investors, with companies finally telling us what’s transpired behind closed doors.

And next week, several notable companies -- UnitedHealth (UNH - Free Report) , Johnson & Johnson (JNJ - Free Report) , and Discover Financial Services (DFS - Free Report) – are on the reporting docket.


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