Netflix (NFLX) is trading down sharply in pre-market trading after reporting Q2 earnings after the close yesterday. (Here’s a snapshot of a report we sent subscribers last week noting that Q2 earnings are typically weak for NFLX.) The stock is set to open lower by 11% when markets open for trading this morning. Big gaps up or down of 10%+ are nothing new for NFLX. Since the company went public, this will be the 14th time that NFLX has gapped down 10%+ in reaction to earnings. When looking at how the stock might trade from the open to the close today following its gap lower, note that in the past the stock has traded higher from the open to the close 8 out of 13 times. As shown below, this same reaction happened a year ago when NFLX reported its Q2 2018 numbers. The stock opened down 13.37% on July 17th last year, but traders that bought at the open that day saw a huge gain of 9.38% from the open to the close.
A total of 46 stocks have reported earnings since the close yesterday. Of those 46 stocks, 67% posted better than expected EPS, while just 56% posted better than expected sales.
Below we show the stocks that reported earnings since yesterday’s close that are trading up in the pre-market. Novartis (NVS) is set to open higher by 5.5% after beating on both the top and bottom line. eBay (EBAY) is set to open up the second most this AM with an expected gap higher of 4.74%. Philip Morris International (PM) is trading up 3.33% pre-market following big beats on EPS and revenues. If PM opens up more than 3%, it will be its biggest gap up on earnings since its April 2015 report when it opened up more than 5%. Other notables on the list of earnings winners ahead of the open include Blackstone (BX), Honeywell (HON), and Danahar (DHR). (Note that this is a snapshot of where stocks were trading pre-market at 8:30 AM ET, so prices could still change quite a bit before the 9:30 AM ET open.)
While Netflix (NFLX) is the most notable loser on earnings this morning, Limelight Networks (LLNW) is actually set to open down even more with an expected gap of -16.36%. LLNW reported a reverse earnings triple play by missing EPS estimates, missing revenue estimates, and lowering guidance.
United Rentals (URI), SAP, Crown (CCK), and Alcoa (AA) are other notable stocks set to open down this morning following earnings reports. Need earnings info for stocks you care about most? Start using our Earnings Explorer tool now with a two-week free trial to Bespoke Institutional.