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Some key earnings reports that came in stronger than expected pushed markets higher Friday, to end the week with a gain.
Google Inc. (Nasdaq: GOOG) had its best profit growth in more than a year. The 12% jump in revenue helped push shares over the $1,000 mark Friday. Morgan Stanley (NYSE: MS) hit a 52-week high Friday after reporting it swung to a profit thanks to strong revenue from its retail brokerage arm. And General Electric Co. (NYSE: GE) soared to a five-year high Friday on solid Q3 results and Chief Executive Officer (CEO) Jeffery Immelt's statement that the company is "ready for a really strong fourth quarter."
Now with one of the busiest Q3 reporting weeks under way, here are the key earnings reports investors can't miss this week:
- McDonald's Corp. (NYSE: MCD) reported Q3 earnings per share (EPS) of $1.52, narrowly beating estimates of $1.51 a share. Revenue rose 2% year over year to $7.32 billion, below the $7.33 billion expected. Comparable stores sales were up 0.7% in the United States and 0.2% in Europe. For Q4, McDonald's expects global comparable sales to be relatively flat.
"Our results reflect McDonald's ability to grow amid the broad-based challenges of the current environment by focusing on those areas of the business within our control," CEO Don Thompson said in a news release.
Late last year, the company saw monthly sales figures drop for the time in almost a decade. The Oak Brook, IL-based company has been struggling to boost sales as competition grows and eating habits change – all while global economic conditions remain challenging.
With its global presence, McDonald's provides valuable insight into consumer behavior worldwide. Shares traded as low as $93.24 Monday, off more than 1%.
Upcoming Earnings This Week
- Netflix Inc. (Nasdaq: NFLX) is expected to report fiscal third-quarter EPS of $0.49 on revenue of $1.10 billion after the close Monday. That compares to EPS of $0.13 on revenue of $905.09 million in the same quarter a year ago.
Shares hit a new 52-week high of $352.63 intraday Monday. The stock is up nearly 200% this year, making it one 2013's biggest winners so far.
With shares priced for perfection, even a slight miss could send the stock tumbling.
- Defense firms are firmly in focus this week with reports from Lockheed Martin Corp. (NYSE: LMT) on Tuesday, Northrop Grumman Corp. (NYSE: NOC) and The Boeing Co. (NYSE: BA) on Wednesday, and Rockwell Collins Inc. (NYSE: COL) on Friday.
The sector is up some 40% year to date thanks to previously agreed funding, which offset sequester cuts. Now, defense executives must outline to shareholders what the next several quarters will look like amid a flat or slightly declining government budget environment.
- A number of healthcare companies are on this week's earnings calendar. Of particular note is Amgen Inc. (Nasdaq: AMGN) on Tuesday. In August, the world's largest biotech company bought Onyx Pharmaceutical for $10.4 billion, giving it full rights to a blood cancer drug with multibillion dollar sales potential. While it's too early to see results from the deal, investors will be listening for future projections.