With the trade war between the US and China out of the way, following the signing of the phase 1 part of the deal last week, the coming week will be all about income. Several mega cap American technology and consumer companies are scheduled to release their fourth quarter numbers.
Closed on Friday on a new record. The reference index has now risen by around 3% since the beginning of the year. At a time when American markets are reaching new highs almost every week, corporate earnings are a crucial indicator that justifies the ongoing rally, but also provides future guidelines for US business, which allow investors to determine whether their expectations are in line with the company. outlook.
In a week full of various important announcements, we focus on the following three shares:
1. Netflix
Global streaming entertainment giant, Netflix (NASDAQ :), will report Q4 earnings on Tuesday, January 21, after the market closes. Analysts expect on average $ 0.52 earnings per share with sales of $ 5.45 billion.
The real test for Netflix, however, is to show that its explosive growth in adding more subscribers continues. This is especially critical at a time when a number of rivals with deep pockets – including Apple (NASDAQ 🙂 and Disney (NYSE 🙂 – have launched their own streaming services and have challenged the near-monopoly of Netflix in the segment.
Amid this uncertainty, investors will focus on subscriber additions in both the company's domestic and global markets. Wall Street predicts profits of 1.83 million domestically and 7.38 million internationally for Q4, according to data collected by Bloomberg.
NFLX Weekly TTM
Netflix shares have underperformed other major tech stocks in the past year due to concerns that the company will find it when many other competitors enter this arena.
Nevertheless, shares have become increasingly high lately. The share has now risen by around 50% compared to the low of December 2018, suggesting that investors are expecting another outburst quarter. Netflix closed on Friday at $ 339.67.
2. Procter & Gamble
Global Consumer Staple Giant Procter & Gamble (NYSE 🙂 will report second-quarter 2020 earnings on Thursday, January 23, before the market opens. Analysts expect an average profit of $ 1.37 on sales of $ 18.41 billion.
PG Weekly TTM
Investors sent P&G shares to a record high on Friday, based on the expectation that the company's growth momentum is still strong, even after it has already seen growth grow. Shares closed $ 126.41 on Friday, an increase of around 40% in the past 12 months.
Over the past two years, the maker of Dawn dishwashing detergent, Bounty paper towels and Crest toothpaste, along with a number of other household brands, has been steadily increasing sales, helped by his innovation, marketing and a simplified organizational structure.
In October, P&G reported that organic sales – excluding acquisitions and currency fluctuations – increased by 7% in the fiscal first quarter. This shows that the company is holding on to momentum following the fastest organic revenue growth of the previous quarter in more than a decade.
3. Intel
Chipmaker Intel (NASDAQ :), will also be closely monitored when it reports earnings for the fourth quarter on Thursday, January 23 after the close. According to the analysts' consensus, the technology giant will report a $ 1.25 equity gain of $ 19.2 billion.
In it, Intel was able to exceed both sales and earnings expectations and to offer an optimistic Q4 forecast, which eased investors' concerns about production bottlenecks and a broader slowdown in demand.
INTC Weekly TTM
Intel, the largest chip manufacturer in the US in terms of revenue, benefits from the strong demand for chips used in data centers. Investors will wonder if the semiconductor colossus based in Santa Clara, CA was able to sustain that increase in demand in the fourth quarter. They will also like to know if the company expects a positive outlook for 2020.
Intel shares, which closed at $ 59.60 on Friday, have returned in the last three months to the expectation that last year's slowdown in the semiconductor industry was short-term. This week's income can further support that rally.
