Earnings week ahead: Tesla, Netflix, AT&T, Johnson & Johnson, GE and more (NYSE:LMT)

The bustling calendar encompasses earnings releases from a trio of major airlines, including American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Southwest Airlines (NYSE:LUV).

In addition to these aviation giants, the lineup includes streaming leader Netflix (NASDAQ:NFLX), telecommunications stalwart AT&T (NYSE:T), payment processors Visa (NYSE:V) and American Express (NYSE:AXP), and energy sector players Baker Hughes (NASDAQ:BKR) and NextEra Energy (NYSE:NEE). Semiconductor stalwarts ASML Holding (NASDAQ:ASML), Lam Research (NASDAQ:LRCX) and Intel (NASDAQ:INTC) are on the docket as well.

The roster extends to technology innovator International Business Machines Corporation (NYSE:IBM), telecommunications company Verizon Communications Inc. (NYSE:VZ), diversified technology company 3M Company (NYSE:MMM), aerospace and defense expert RTX Corporation (NYSE:RTX), healthcare company Abbott Laboratories (NYSE:ABT), healthcare and consumer products giant Johnson & Johnson (NYSE:JNJ), telecommunications technology innovator Ericsson (NASDAQ:ERIC), major tobacco player Philip Morris (NYSE:PM), and global investment powerhouse Blackstone (NYSE:BX).

Below is a rundown of major quarterly updates anticipated in the week of January 22 to 26:

Monday, January 22

United Airlines (UAL)

United Airlines (UAL) is scheduled to report its earnings after the closing bell on Monday, following an optimistic report from key competitor Delta Air Lines (DAL) earlier in the month. However, Delta issued a profit outlook below its long-term forecast, which rattled the airlines sector.

Seeking Alpha’s Quant rating system recommends a Hold on the stock, while Wall Street analysts suggest a Buy.

Seeking Alpha contributor IncomeBent Investments, speaking highly of UAL, emphasizes the airline’s resilience and strategic agility. United Airlines is seen as effectively navigating challenges and positioning itself for future growth.

IncomeBent added that the airline serves both business and leisure travelers, contributing to enhanced customer loyalty and revenue potential. United’s impressive financial performance, marked by capacity and revenue growth, strong earnings, and record-breaking operations, positions it as an attractive investment opportunity, the analyst said.

  • Consensus EPS Estimates: $1.71
  • Consensus Revenue Estimates: $13.55B
  • Earnings Insight: United Airlines has beaten EPS and revenue estimates in 6 of the past 8 quarters.

Also reporting: Bank of Hawaii (BOH), Agilysys (AGYS), AGNC Investment (AGNC), Brown & Brown (BRO), Independent Bank Group (IBTX), TFI International (TFII), Zions Bancorp (ZION), and more.

Tuesday, January 23

Netflix (NFLX)

Streaming behemoth Netflix (NFLX) will report its Q4 financial results on Tuesday, after the bell. The stock has witnessed an upside of over 50% over a period of 12 months following the implementation of password-sharing rules and the execution of its growth strategy. The Seeking Alpha Quant Rating system maintains a Hold rating on the stock in contrast to Wall Street analysts’ Buy rating.

Feli Brum, CFA, a Seeking Alpha author, holds a bearish view on Netflix, expressing concerns about its market capitalization of $200B and the perceived challenges in its path to earning enough to justify its valuation.

  • Consensus EPS Estimates: $2.24
  • Consensus Revenue Estimates: $8.71B
  • Earnings Insight: Netflix has risen above EPS estimates in 7 of the past 8 quarters while exceeding revenue expectations in just 3 of those reports.

Also reporting: 3M (MMM), D.R. Horton (DHI), Ericsson (ERIC), GATX (GATX), General Electric (NYSE:GE), Halliburton (NYSE:HAL), Invesco (IVZ), Lockheed Martin (NYSE:LMT), Logitech International (LOGI), PACCAR (PCAR), Procter & Gamble (PG), RTX (RTX), Verizon (VZ), Baker Hughes (BKR), Texas Instruments (TXN) and more.

Wednesday, January 24

Tesla (TSLA)

In one of the most anticipated reports of the week, Tesla (TSLA) is slated to disclose its Q4 earnings after the closing bell on Wednesday. Analysts expect a Y/Y decline in EPS, attributed to the impact of the pricing war.

The market assesses the stock cautiously, with both the Seeking Alpha Quant Rating system and sell-side analysts assigning Hold ratings.

Seeking Alpha Investing Group Leader Victor Dergunov predicts that Tesla is poised to exceed low sales and earnings estimates, expecting a 20% year-over-year (Y/Y) revenue surge. Despite facing challenges, Dergunov believes that Tesla’s long-term outlook remains favorable, driven by the expanding EV market and the company’s advantages and economies of scale.

Earlier this month, the EV maker announced a record-breaking delivery figure of 484,507 vehicles in Q4, surpassing market predictions of 483K deliveries and reaching its annual target. However, it lost its position as the top electric car maker in terms of sales to China’s BYD.

  • Consensus EPS Estimates: $0.74
  • Consensus Revenue Estimates: $25.74B
  • Earnings Insight: Tesla has beaten revenue estimates in 4 of the past 8 quarters, missing EPS expectations only twice in that period.

Also reporting: Abbott (ABT), ASML (ASML), AT&T (T), Freeport-McMoRan (FCX), General Dynamics (GD), Kimberly-Clark (KMB), Monro Muffler (MNRO), SAP SE (SAP), Canadian Pacific (CP), IBM (IBM), Lam Research (LRCX), Las Vegas Sands (LVS), ServiceNow (NOW) and more.

Thursday, January 25

Intel (INTC)

Just a week after Taiwan Semiconductor’s robust Q4 earnings results and bullish forecast, tech bellwether Intel (INTC) is poised to unveil its Q4 quarterly results after the market closes on Thursday. Analysts anticipate significant year-over-year (Y/Y) growth in profits.

However, market experts cautiously assess the stock, which has experienced a notable 62% growth over the past 12 months. Both Wall Street analysts and Seeking Alpha’s Quant rating system currently designate the stock as a Hold.

SA contributor Oliver Rodzianko, adopting a bearish stance, acknowledges Intel’s AI revenue and cost-saving business applications in the AI market make it a strong investment for long-term growth. However, its financials and relative weakness compared to its peers raise concerns about future growth and make it a risky investment in the AI market.

Rodzianko added that Intel’s overvalued shares have potential due to the rising AI market and its strong positioning but has concerns about its financials and future growth. Despite admiring Intel’s history and continued impact on the technology industry, it is questionable if it is the best investment, despite its potential in the AI market.

  • Consensus EPS Estimates: $0.45
  • Consensus Revenue Estimates: $15.18B
  • Earnings Insight: The chip giant has outperformed revenue estimates in 6 out of the last 8 quarters, while exceeding EPS estimates only 50% of the time in that timeframe.

Also reporting: Alaska Air (ALK), American Airlines (AAL), Blackstone (BX), Comcast (CMCSA), Dow (DOW), Humana (HUM), Marsh McLennan (MMC), McCormick (MKC), Mobileye (MBLY), Nokia (NOK), Northrop Grumman (NOC), Southwest Airlines (LUV), Union Pacific (UNP), Xerox (XRX), Applied Materials (AIT), KLA (KLAC), T-Mobile (TMUS), Visa (V), L3Harris (LHX), Capital One (COF), and more.

Friday, January 26

American Express (AXP)

financial services provider American Express (AXP) is scheduled to release its Q4 results before the opening bell on Friday. In the previous week, the company reported that its U.S. consumer credit card delinquency rate remained steady at 1.4% in December. However, the net write-off rate saw an increase to 2.5%, attributed to the shift of some write-offs from November to December due to the timing of Thanksgiving last year.

Analysts hold diverse opinions on the stock, with the sell-side recommending it as a Buy. In contrast, Seeking Alpha’s quant rating system maintains a Hold rating, citing concerns related to valuation.

SA author PropNotes is optimistic about American Express, describing it as a “compounder,” a stock with the potential for sustained above-average growth over an extended period.

  • Consensus EPS Estimates: $2.65
  • Consensus Revenue Estimates: $15.95B
  • Earnings Insight: The company has beaten EPS estimates in 6 of the past 8 quarters and revenue estimates in 5 of those reports.

Also reporting: Autoliv (ALV), Booz Allen (BAH), Colgate-Palmolive (CL), Fortis (FTS), Imperial Oil (IMO), Gentex (GNTX), and more.

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