In the heaviest reporting day this earnings season, with 49 S&P 500 companies expected to release results, we’ll get numbers from two biggies after the closing bell, Facebook and Gilead Sciences. Facebook did incredibly well last quarter, with EPS of $0.42 beating the Estimize consensus by $0.06 and the Street by $0.09. The third quarter is expected to top those results, with the current Estimize consensus at $0.45 vs. Wall Street’s consensus of $0.40. Revenues expectations stand at $3.165B, representing YoY growth of 57%. Of course, advertising has provided the lion’s share of the company’s total revenue for some time, and growth in ad sales will be closely watched this quarter, with Q3 2013 coming in at $1.8B, and the latest quarter rising to $2.68B. A majority of this has been in mobile ads, with the year-ago number of mobile ads making up 49% of total ad revs, with that number increasing to 62% in the latest quarter. We will be looking to see if that trend continues in the third quarter. There is no doubt this year has been a good one for Facebook shareholders, with the stock rising nearly 50% for the year. Here’s more about what we’ll be looking for from Facebook this afternoon. 

Gilead Sciences is also scheduled to release earnings after the bell. Last quarter Gilead posted one of the largest beats against the Estimize consensus ever recorded by earning $2.36 per share while Estimize was at $1.94. For comparison the Wall Street consensus was just $1.80. Gilead’s earnings spike was driven by its new Hepatitis C drug, Sovaldi; that same drug is expected to quadruple profits in the third quarter. On October 10 Gilead won approval to sell a new Hepatitis C drug, Harvoni. Harvoni did not go on sale during Gilead’s third quarter, but investors will look for management to provide commentary on the new drug’s highly anticipated launch during the conference call. For the third quarter, the company is expected to post EPS of $2.09 according to the Estimize community, vs. the much lower Wall Street estimate of $1.80, marking a 300% increase YoY. Revenue expectations of $6.235B would show improvement of 124%.

How Are We Doing?

Expectations for S&P 500 earnings growth for the third quarter stand at 10.3%. Revenues are anticipated to come in with 4.3% growth. All 10 sectors are anticipated to post positive YoY growth on both the earnings and revenue front.

Leaders

Earnings:

Health Care (13.4%). Notable industry: Biotechnology (46.7%)

Materials (13.1%). Notable industry: Metals & Mining (15.3%).

Consumer Discretionary (12.7%). Notable industry: Internet Retail (20.5%)

Revenues:

Health Care (9.7%). Notable industry: Biotech (40.2%).

Information Technology (7.3%). Notable industry: Internet Software & Services (21.4%)

Laggards

Earnings:

Utilities (2.9%). Notable industry: Electric Utilities (1.2%).

Telecommunication Services (0.9%): All five companies are within Diversified Telecom Services. Only Verizon posted Y­oY growth.

Revenues:

Energy (0.2%). Notable industry: Oil, Gas and Consumable Fuels (­-0.6%).

Materials (2.7%). Notable industry: Paper & Forest Products (­-13.6%).

Beat/Miss/Match

Earnings: 236 companies have reported thus far, 50% have beaten the Estimize consensus, 37% have missed and 13% have met. This is compared to Wall Street estimates, of which 69% of companies have beat on the bottom­-line, 23% have missed and 7% have met.

Revenue: 50% have beaten the Estimize consensus, 60% have missed, and 0% have met. For revenues, 60% of companies have beat the Wall Street estimate, while 40% have missed.