European airlines have been facing their fair share of headwinds including Brexit, Boeing 737 Max delays and oil prices. Ryanair Holdings CEO Michael O’Leary has been consistent in his outlook that the airline industry is going to face further consolidation while unprofitable airlines will go into bankruptcy. “I think inexorably the market is moving towards consolidation. The bankruptcy of Thomas Cook was the latest … we clearly think the next failure will be that of Norwegian.” Looking at StarMine quantitative models and analytics, a challenging picture is painted for low-cost carrier Norwegian Air Shuttle: a secular decline in stock price

Net interest margin (NIM), the difference between interest charged on loans and paid on deposits, is a key profitability metric for banks which has come under pressure given a decline in global growth expectations and a low interest rate environment. An undesirable outcome related to Brexit will likely add further pressure on interest rates, impacting future profitability. HSBC Group CFO Ewen Stevenson comments, “consensus is for a further rate cut at some point in the coming months … I think, is going to impact NIM negatively over time … I would think that NIM in the U.K. continues to gradually

A clear trend has emerged within the energy sector, consistent negative earnings and revenue forecasts for the S&P 500’s oil & gas exploration & production (E&P) sub-industry. The group continues to face a weak pricing environment and is expected to stop the exponential production growth. Exhibit 1: S&P 500 E&P YoY Growth Rates vs. Net Profit Margin Analyst estimates for E&P’s 19Q3 aggregated earnings have fallen 20.1% since July 1 and revenue expectations have come down 9.0%. As a result, the outlook for 19Q3 YoY earnings are down 15.1 percentage points (ppts) to a decline of 39.5% and revenue fell

Netflix shows that it’s not enough to beat earnings. The media giant beat 19Q2 earnings with an EPS of $0.60 vs. the $0.56 per share estimate; however, failed to deliver on a key performance indicator. Net subscriber additions for the quarter of 2,699 million missed expectations by 47.2%. As a result, Netflix shares have fallen 16%. Now that the stage has been set, investors eagerly await the fate of the remaining members of F.A.N.G., Facebook Inc (FB.O), Amazon.com Inc (AMZN.O), and Alphabet Inc (GOOGL.O, GOOG.O), which start to report this afternoon with Facebook. Exhibit 1: F.A.N.G. YoY Growth Rates Analysts

The second quarter of 2019’s earnings season kicked off with a flood of bank earnings reports. Fourteen of the 19 companies within the S&P 500’s bank industry have reported 19Q2 earnings and revenue. While the majority of companies within the industry beat top and bottom line expectations, they fell short on some industry key performance indicators (KPI’s). Exhibit 1: S&P 500 Bank Industry YoY Growth Rates The S&P 500 bank industry is expected to see 19Q2 YoY revenue increase 2.9% and earnings increase 18.4%. Of the companies that reported, 78.6% beat revenue estimates, which came in 1.7% above expectations. The