Earnings Playbook: How to trade results from PLTR, LCID, AMC,RBLX,RIVN

WealthSquad
2022-11-07

The earnings season is winding down, but some of the most widely followed companies are still on deck to report.

Roughly 30 S&P 500 components are scheduled to post their latest quarterly figures, including Disney. Palantir and electric car makers Rivian, Nio and Lucid are also expected to report this week.

Roughly 85% of S&P 500 companies have reported third-quarter earnings, with 71% topping bottom-line estimates, according to FactSet.

Check out some of the key companies slated to post results this week, and what investors can expect out of each report.

Monday

$Palantir Technologies Inc.(PLTR)$ is set to report earnings before the bell, followed by a conference call at 8 a.m. ET.

  • Last quarter:PLTRposted an unexpected quarterly loss,sending the stock tumbling.
  • This quarter:The company is expected to report year-over-year revenue growth of nearly 20% according to Refinitiv.
  • What CNBC is watching:Palantir shares have shed more than half of their value in 2022, and investors may not find much reprieve in the company’s latest quarterly report. RBC analyst Rishi Jaluria said he sees the value of Palantir’s U.S. government contracts falling by 5% year over year “and down sequentially against an easier compare.”
  • What history shows:Palantir’s bottom-line results have missed expectations in the last three quarters, according to FactSet.

Tuesday

$Lucid Group Inc(LCID)$ is set to report earnings after the close, with a management call set for 5:30 p.m. ET.

  • Last quarter:LCIDonce again cut production targetsamid logistics challenges.
  • This quarter:The electric car maker is expected to post another quarterly loss, according to Refinitiv data based on six analyst estimate.
  • What CNBC electric vehicles reporterJohn Rosevearis watching: “Investors will be searching for clues on whether Lucid is still on track to meet a conservative2022 production target of 6,000 to 7,000 vehicles. The company has already cut its full-year production forecast twice. Originally, it expected to build 20,000 Air electric luxury sedans. However, supply chain constraints hindered the company’s ability to obtain basic materials such as carpet and glass.”
  • What history shows:Lucid posted smaller-than-expected losses in the last two quarters, FactSet data shows.

$AMC Entertainment(AMC)$ is set to report earnings after the close. Corporate leadership is set hold a call at 5 p.m. ET to discuss the results.

  • Last quarter:AMCposted a smaller-than-expected loss for the previous quarter, sending the stock up 18%.
  • This quarter:The theater operator’s top line is expected to have grown by more than 20%, Refinitiv data shows.
  • What CNBC is watching: Shareholders will look for clues on how the company is doing, as relaxed Covid restrictions lead to to greater movie theater attendance. “That said, the volume of content has not yet returned to pre-pandemic levels, and release slate holes such as August through October were largely driven by production delays over the last year. AMC has the cash to weather the slump, and is well-positioned for a strong Q4:22 and 2023 with its vast network of premium large format screens,” wrote Wedbush analyst Alicia Reese, who has an underperform rating on the stock.
  • What history shows:AMC’s quarterly results have only beaten analyst estimates in three of the last 10 quarters, according to FactSet. Still, the stock averages a 1.01% gain on earnings days.

Wednesday

$Roblox Corporation(RBLX)$ is set to report earnings in the premarket. Management is slated to hold a conference call at 8:30 a.m. ET.

  • Last quarter:RBLXposted a bigger-than-expected lossas average daily active users came in well below expectations.
  • This quarter:The company is expected to post another quarterly loss, but analysts see revenue growing in the mid-single digits, per Refinitiv.
  • What CNBC is watching: Look for Roblox to go “back into growth mode,” according to Bank of America analyst Omar Dessouky. “We expect 3Q consolidated bookings to grow at 9% Y/Y, driven by engagement and monetization improvements particularly in the core [U.S./Canada] market,” said the analyst, who has a buy rating on the stock.
  • What history shows:None of Roblox’s six quarterly reports as a public company have beaten expectations, according to Bespoke. Still, the stock averages a 6.78% gain on earnings day.

$Rivian Automotive, Inc.(RIVN)$ is set to report earnings after the close, with management holding a call at 5 p.m. ET.

  • Last quarter:RIVNposted second quarter revenue that beat analyst expectations,but said it sees a wider loss for 2022.
  • This quarter:According to Refinitiv, Rivian is expected to post a much narrower loss relative to the year-earlier period.
  • What CNBC electric vehicles reporterJohn Rosevearis watching: “Last month,Rivian said production jumped 67% from the second to the third quarter, reaching 7,000 vehicles. The company also said it’s on pace to meet its full-year production goal of 25,000 EVs. Investors will be looking for signs that Rivian is still on track to meet that lofty goal,but some analysts think it can be done.”
  • What history shows:Rivian has only been a public company for about a year, but the company has posted smaller-than-expected losses in back-to-back quarters, according to FactSet.

— CNBC’s Michael Bloom contributed reporting.

https://www.cnbc.com/2022/11/06/earnings-playbook-how-to-trade-results-from-disney-and-3-electric-car-makers.html

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