It’s a short week on Wall Street, but a major upcoming earnings report could move the stock market. Thirty-five S&P 500 companies including Netflix, Johnson & Johnson and United Airlines will release their latest quarterly data. The week before, the big banks had released startling numbers. JPMorgan Chase & Co. posted record fourth-quarter results, while Goldman Sachs and Morgan Stanley beat analysts’ expectations on strong trading revenue. Overall, just over 40 S&P 500 companies have issued reports to date. FactSet data shows that 76% of them exceeded analysts’ expectations. Check out CNBC Pro’s breakdown of expectations for this week’s major reports. All times are Eastern Time. DR Horton will report earnings before the bell on Tuesday, followed by a conference call at 8:30 a.m. Last quarter: DHI reported fourth-quarter financials that missed analyst expectations. This quarter: The homebuilder’s earnings are expected to be down more than 15% from a year ago, according to LSEG. What to watch: Dr. Horton’s outlook appears bleak ahead of its earnings release, according to Wells Fargo. The bank lowered its fiscal first-quarter forecast earlier this month, saying it expects “second-quarter guidance to factor in lower-than-street deliveries (near 20,000) and (gross margin) % (likely lower than last quarter, below 22.5%).” %). The stock also had a loss-making year, down 8% in 2024. Netflix is scheduled to report earnings after the bell for the last quarter: NFLX reports ad-level subscribers. Up 35%. For the quarter: The streaming giant’s profits are expected to double from the same period last year, according to London Stock Exchange Group consensus estimates. What to watch: The key for Netflix investors is what the company has to offer. Guidance on how to continue to deliver highly regarded content and strengthen its live event lineup “Netflix continues to deliver on high-rated content (Squidward Season 2 had 68MM views in 92 countries), award-winning original films and TV series. (NFLX continues to gain share among media companies with the most Golden Globe nominations, ranking No. 1 in film with 13 nominations, No. 1 in television (23), noteworthy special events and streaming/connected TV ad revenue “Both confirm the premium valuation of NFLX stock,” Seaport Research Partners said in an upgrade earlier this month. History shows that Netflix’s stock price has fluctuated significantly after two of the past three earnings days, including October. Up 11.1%. United will report earnings after the close, with management set to hold a conference call the next day: UAL issued a strong forecast for the fourth quarter, sending shares to pre-pandemic highs. According to LSEG, the airline’s profits this quarter are expected to increase nearly 50% year-over-year. What CNBC airline reporter Leslie Josephs is paying attention to: “People are worried about United Airlines (United Airlines). There are high hopes that earnings and revenue will continue to grow, and the company’s stock has been the best-performing airline stock over the past fiscal year, and investors will look to United for demand and demand as the coronavirus pandemic fully materializes. A sign of pricing power. As usual, United executives will also interpret Boeing’s likelihood of increasing production this year as demand from customers reaches key destinations. History shows: United has exceeded profits for nine consecutive quarters, according to Bespoke data. Expected. A conference call between analysts and management is also scheduled for Wednesday at 8 a.m. J&J’s third-quarter profit and revenue beat analysts’ expectations. Quarterly: Analysts polled by London Stock Exchange Group (LSEG) forecast an annual profit drop of more than 10%. What to watch: Goldman Sachs analyst Chris Shibutani sees expectations for the pharmaceutical giant after reviewing events this quarter. It is “reasonable” – including the trend of surgery volume in the end market of the company’s medical technology business, as well as the trend of prescription volume of major pharmaceutical companies and the products of innovative medicine business. History shows: Johnson & Johnson’s earnings beat estimates 96 percent of the time, according to Bespoke. However, the stock rose an average of just 0.3% on earnings days. Procter & Gamble will host a conference call at 8:30 a.m. to report earnings before the market opens. Last quarter: PG’s profit beat expectations, but weakness in China weighed on sales. This quarter: Analysts expect profits to be flat from a year earlier, London Stock Exchange Group data showed. What to watch: Barclays said several factors could disrupt Procter & Gamble’s earnings report. “Recent comments… have been less constructive, reassuring us to remain on the sidelines for now. Specifically, in December, management also highlighted deteriorating currency dynamics (particularly weakness in the Brazilian real, Mexican peso, and Russian ruble) Analyst Lauren Lieberman, who rates the stock neutral, said in a note that this was the negative impact of the cybersecurity incident at its transportation management services provider Blue Yonder. History shows: Bespoke data. It shows that Procter & Gamble’s profits have exceeded profit expectations for seven consecutive quarters.
Your guide to the week’s biggest stories (including Netflix) | Real Time Headlines
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