Netflix, 3M, Schlumberger among Zacks' Q2 Earnings Preview

Netflix, 3M, and Schlumberger are among the companies set to report Q2 earnings this week. The earnings season gets underway with almost 100 companies reporting results, including 38 S&P 500 members. Despite a significant negative estimate revisions trend, the Tech sector's revisions trend has stabilized in recent weeks. The market appears to have learned to look past tariff uncertainty, but elevated tariffs remain a net negative for the economy and corporate profitability.

The earnings season is in full swing, with nearly 100 companies set to report their Q2 results, including 38 S&P 500 members. Among the notable releases, Netflix (NFLX), 3M (MMM), and Schlumberger (SLB) are scheduled to announce their earnings this week.

Netflix (NFLX)

Netflix shares traded lower on Thursday despite analysts raising their price targets ahead of the company's Q2 earnings report. Analysts expect an EPS of $7.06 on $11.04 billion in revenue, with KeyBanc Capital Markets projecting revenue of $11.2 billion and EPS of $7.20, slightly above consensus. The stock closed Thursday's session lower by 2.93% to $1,250.59, with a 52-week high of $1,341.15 and a 52-week low of $588.43 [1].

3M (MMM)

3M, a diversified technology company, is also set to report its Q2 earnings. The company has faced challenges due to geopolitical uncertainties and supply chain disruptions. Analysts expect 3M to report an EPS of $2.30 on $9.50 billion in revenue. The stock has been relatively stable, with a 52-week high of $349.47 and a 52-week low of $247.60.

Schlumberger (SLB)

Schlumberger, a leading provider of technology for the oil and gas industry, is expected to report its Q2 earnings. The company has been impacted by the global energy market volatility and geopolitical tensions. Analysts expect an EPS of $0.85 on $14.50 billion in revenue. Schlumberger's stock has seen a significant drop, with a 52-week high of $142.42 and a 52-week low of $55.50.

Market Outlook

The market appears to have learned to look past tariff uncertainty, but elevated tariffs remain a net negative for the economy and corporate profitability. The Tech sector's revisions trend has stabilized in recent weeks, despite a significant negative estimate revisions trend. Analysts will be closely watching the earnings reports for any signs of resilience or vulnerability.

Conclusion

The Q2 earnings season is off to a mixed start, with various companies reporting differing levels of optimism and uncertainty. Investors and financial professionals should closely monitor the earnings reports and adjust their portfolios accordingly.

References

[1] https://www.benzinga.com/trading-ideas/movers/25/07/46357194/netflix-stock-dips-ahead-of-q2-earnings-despite-analyst-optimism