Kalkine Media lists five major earnings to watch this week

The third quarter earnings season is all set to take its pace its pace this week, with several big companies scheduled to report their latest quarter performance results. Some of the companies include PepsiCo, Inc. (NASDAQ: PEP), Delta Air Lines, Inc. (NYSE: DAL), UnitedHealth Group Incorporated (NYSE: UNH), Morgan Stanley (NYSE: MS), and US Bancorp (NYSE: USB), who would be reporting their earnings.

Meanwhile, the investors are expected to keep a close watch on the earnings for cues on how the companies have performed in recent months amid rising costs, higher interest rates, and strong dollar-weighing businesses.

In addition, the third quarter earnings season could also set the stage for future market performance, which has been choppy this year. At the start of the last quarter, the market witnessed a positive momentum, partly triggered by the positive second-quarter earnings.

Let's look at the stock performance and other details about the companies ahead of their scheduled release this week.

PepsiCo, Inc. (NASDAQ: PEP)

PepsiCo is one of the leading food, snack, and beverage companies with a dividend yield of 2.85 per cent. The US$ 223.32 billion market cap company has business in several international markets throughout the globe.

PepsiCo's P/E ratio is 24.37, and its stock decreased nearly seven per cent this year through October 7, when it closed at US$ 161.61. On a YoY basis, the stock price of PEP rose three per cent.

The leading food and beverage company will report its third quarter fiscal 2022 earnings results on Wednesday, October 12.

Meanwhile, in the previous quarter, PepsiCo Inc.'s net revenue noted a jump of 5.2 per cent YoY to US$ 20.22 billion, and its attributable net income was US$ 1.42 billion. In Q2 FY22, the attributable net income of the Purchase, Harrison-based beverage company decreased from US$ 2.35 billion in the year-ago quarter.

Delta Air Lines, Inc. (NYSE: DAL)

Delta Airlines is one of the leading airline companies in the US, with a P/E ratio of 31.98. The US$ 18.86 billion market cap company's forward one-year P/E ratio was 10.85.

The stock price of the legacy carrier plunged over 24 per cent in 2022 after closing at US$ 29.39 on Friday, October 7. In the last 12 months, the DAL stock retreated about 32 per cent, while in the fourth quarter, it added over four per cent through last Friday.

The airline company is scheduled to release its September quarter financial performance results on Thursday, October 13, at 10 am EDT.

Meanwhile, in the June quarter of 2022, its total revenue increased by 10 per cent to US$ 13.82 billion from the same quarter of 2019. However, compared with the June quarter of 2019, its net income fell 49 per cent to US$ 735 million in the last quarter.

UnitedHealth Group Incorporated (NYSE: UNH)

UnitedHealth Group Incorporated is one of the leading US healthcare companies by market cap with a dividend yield of 1.31 per cent.

The US$ 466.62 billion market cap company mainly manages healthcare and insurance-related operations while providing several healthcare products and insurance services.

The healthcare company's stock traded near the flat line this year while showing gains of around 24 per cent in the last 12 months. In the last nine months, the UNH stock has added about 10 per cent.

The leading healthcare firm will report its third quarter fiscal 2022 earnings results on Friday, October 14, at 8:45 am ET.

Meanwhile, in the previous quarter, UnitedHealth Group's revenue saw a surge of 13 per cent YoY to US$ 80.3 billion, while its earnings from operations were US$ 7.1 billion, noting a surge of 19 per cent YoY from Q2 FY21.

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Morgan Stanley (NYSE: MS)

Morgan Stanley is one of the major financial services firms with a dividend yield of 3.93 per cent. The company, which holds a market cap of US$ 134.61 billion, engages in the investment management business and provides its services to consumers.

The financial services provider's stock was down around 19 per cent in 2022 while falling about 20 per cent in the last 12 months. The MS stock closed at US$ 78.93 on October 7.

It is among the top financial services companies that will report their earnings this week. The New York-based company is expected to release its third-quarter financial performance results on Friday, October 14, at 7:30 am ET.

Meanwhile, in Q2 FY22, Morgan Stanley's net income was US$ 2.5 billion on revenue of US$ 13.1 billion. In the year-ago period, the revenue and net income of the financial services provider were US$ 14.8 billion and US$ 3.5 billion, respectively.

U.S. Bancorp (NYSE: USB)

US Bancorp is another major financial services company to report its earnings this week, and the company's dividend yield was 4.78 per cent.

The US$ 59.17 billion market cap bank holding company engages in several operations like mortgages, providing loans, and other personal and consumer banking services.

The USB stock fell 28 per cent YTD and around 35 per cent YoY. Its price was down about 34 per cent in the last nine months. Meanwhile, the 52-week low of the USB stick was noted on September 30 this year, when it touched US$ 40.27.

The bank holding firm will announce its third-quarter earnings results on Friday, October 14.

In the prior quarter, its net income reported was down 22.8 per cent YoY to US$ 1.53 billion while slipping 1.7 per cent QoQ. Its diluted EPS in Q2 FY22 was down 22.7 per cent YoY to US$ 0.99 apiece.

Bottom line:

The market has so far come under pressure, given a flurry of macroeconomic headwinds dampening the market participants' sentiments. The investors seem to be spooked by the higher costs and the central bank's commitment to bringing down inflation.

The policymakers have clarified that they would back more interest rate hikes in the coming time to bring down inflation. But the investors anticipate that more aggressive rate hikes would tip the economy into a recession.

The S&P 500 index, which generally gives an idea of the overall equity market, fell over 17 per cent in the last 52 weeks while dropping over 24 per cent this year. Investors must move cautiously amid the topsy-turvy condition considering the recent downturn of the overall financial market.