Skip to Content
Commentary

The Week Ahead: Delta, Johnson & Johnson, and Morgan Stanley Among Companies to Kick Off Third-Quarter Earnings

We are on the lookout for a week stacked with reports from names in the financials, healthcare, and industrials sectors.

Mentioned: , , , , , , , ,

Following the conclusion of the third quarter, we are looking forward to a strong start of another earnings season with reports on Tuesday from Delta Air Lines (DAL) and Johnson & Johnson (JNJ) as well as a report from Morgan Stanley (MS) on Thursday.  

While every industry felt the fury of the pandemic's wrath, airlines have suffered some of the sharpest declines in history. Airport traffic has slowly increased, and we anticipate more consumers will be comfortable flying again once a coronavirus vaccine is available. Our near-term outlook for Delta remains gloomy, but we expect the airline to recover from the coronavirus. With its product segmentation and credit card partnerships, we see Delta as the highest-quality legacy carrier and believe the company has the potential to expand its higher-margin business after the pandemic. However, we think the airline will still feel the pressure from its lower-cost competitors in the leisure business. 

President Donald Trump's updates to the administration's healthcare policy have increased uncertainty surrounding the drug industry. The updates include new drug benefit cards for seniors, executive orders supporting insurance protection for pre-existing conditions, and increased clarity around medical billing. We predict that implementing these updates could be challenging, but we don't plan on making monumental adjustments to our fair value estimates and Morningstar Economic Moat Ratings for the drug manufacturers we cover, including Johnson & Johnson. 

This past week, narrow-moat Morgan Stanley acquired narrow-moat Eaton Vance in a $7 billion deal. The two firms complement each other and have less overlap in products, and we think this is a strategic deal for the bank that could lead to meaningful revenue synergies. 

We also have an eye out for financial giants Citigroup (C), JPMorgan Chase (JPM), and BlackRock (BLK) to report earnings on Tuesday, followed by Wells Fargo (WFC) and Bank of America (BAC) on Wednesday. In the healthcare sector, we expect an earnings report from UnitedHealth Group (UNH) on Wednesday. 

Carole Hodorowicz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.