Several companies are set to report their earnings in the upcoming week, with a few expected to stand out during this earnings season. Approximately 22% of S&P 500 members are anticipated to release their quarterly results next week. So far, most companies that have reported their third-quarter earnings have surpassed earnings and revenue projections, as per FactSet. In light of this, CNBC Pro analyzed data from Bespoke Investment Group to identify firms reporting next week that frequently surprise investors positively and show strong post-earnings performances. The companies listed below have exceeded Wall Street’s earnings per share expectations 70% of the time and have experienced a rise of 2% or more on earnings day.
Among these, ServiceNow is noted for making the most significant post-earnings gain, approximately 3.3%, according to the data. The enterprise software leader has consistently outperformed analysts’ earnings per share estimates 90% of the time. Wells Fargo analyst Michael Turrin holds a positive outlook on the stock. He recently reaffirmed his overweight rating on ServiceNow and increased his price target to $1,025 per share from $935. This new assessment suggests a potential upside of more than 11.5% for the stock, which has risen by 30.3% this year. Turrin highlighted in an October 6 note to clients that ServiceNow aligns with high-quality franchises, demonstrating strong platform positioning, balanced growth profiles, and proven management teams. He also remarked that the company’s recent Xanadu product release is a “major step forward” in advancing its artificial intelligence vision. On Monday, ServiceNow announced its plan to invest $1.5 billion in the U.K. over the next five years to expand its U.K. operations amidst increasing data center infrastructure and AI demand.
Monolithic Power, a maker of power circuits, also has a strong earnings beat rate of 88%. Its shares have increased by over 48.5% this year, surpassing the broader market. The stock typically moves about 2.6% on earnings day, according to Bespoke. Oppenheimer analyst Rick Schafer included Monolithic in his top semiconductor picks, emphasizing its potential to capitalize on AI-related growth. He expects leading AI-exposed companies, such as Monolithic, to deliver promising results and outlooks following the sector’s corrective phase in 2023.
Impinj, known for producing radio-frequency identification devices, is also on the list. It has outperformed earnings expectations 88% of the time, with the stock gaining an average of 3.2% in post-report sessions. This year, Impinj’s stock has surged approximately 160.3%. Nonetheless, analysts surveyed by FactSet project that the shares may face a decline, as their consensus price target indicates a potential downside of roughly 13.6%. Despite this, analysts maintain a consensus buy rating on the stock.
