Even if uncertainty about the corona virus continues to weaken the markets, some of the largest US companies will start publishing Q1 2020 earnings in the coming week.
Several megacap technology and consumer companies will publish their latest reports at a time when the national conversation has shifted to the possibility of the pandemic. As a result, investors are increasingly hopeful that the economy will recover soon after the virus is contained.
It booked a second week of profit – the longest positive streak since mid-February – after the U.S. government issued guidelines for rebooting the economy. The benchmark index has now risen about 31% since it hit its lowest point this year on March 23.
In this environment, corporate earnings are a critical indicator that justify the ongoing rally, as well as provide future guidance from the US corporate sector, allowing investors to determine whether their expectations are in line with the company's future prospects.
In a week full of several important announcements, we focus on the following three stocks:
1. Netflix
The streaming entertainment giant Netflix (NASDAQ: ) will report Q1 earnings on Tuesday, April 21 after the market closes. Analysts expect a profit of $ 1.67 on a turnover of $ 5.74 billion.
Netflix shares are among the few that emerged unharmed from the COVID-19 sale on the market, in the hopes of investors that his company will continue to flourish because it is a perfect "" stock.
As of Friday's end, Netflix's shares had so far gained about 31% this year, while the S&P 500 index declined 11%. This unexpected resilience comes after Netflix's in 2019, when stocks fell way behind the wave that pushed so many other megacap tech stocks to new highs.
Next week's earnings report will be critical to support that rally. The Los Gatos, CA-based company must demonstrate that it is cementing its position as the dominant streaming service during the coronavirus pandemic.
2. Coca-Cola
The world's largest soft drink producer, Coca-Cola (NYSE :), announced its first quarter earnings before the market also Tuesday. opens. Analysts' consensus expects earnings of $ 0.44 per share on revenues of $ 8.37 billion.
KO Weekly TTM
The Atlanta-based beverage maker is rapidly expanding its product portfolio as consumers increasingly turn away from sugary soft drinks. New products, such as Coke Plus Coffee and the expansion of Coke Zero Sugar, last year.
But this year will probably be a difficult year for the multinational. The coronavirus pandemic is forcing restaurants and bars around the world to remain closed, even though consumers are urged to avoid large gatherings, locations where soft drinks are often served. Shares of Coca-Cola, which closed at $ 48.06 on Friday, have fallen 13% this year.
3. Intel
Chipmaker Intel (NASDAQ 🙂 will also be reviewed in the coming week, when it will be Thursday, April 23, after its shutdown reports quarterly earnings. According to analyst consensus, the semiconductor giant is expected to report $ 1.28 per share earnings on revenues of $ 18.63 billion.
INTC Weekly TTM
Intel, the largest chip manufacturer in the United States in terms of sales, took advantage of the high demand for chips used in data centers before the corona virus pandemic hit. But that gain was limited as Intel struggled to ramp up the production of chips using its latest 14-nanometer process node. The results showed that sales increased by 2%, although net income remained the same.
Investors will be eager to see if the colossus in Santa Clara, CA sees weak demand due to the pandemic and global economic slowdown. In particular, they will be eager to know if the company expects a positive outlook for 2020.
Intel shares, which closed at $ 60.36 on Friday, performed strongly in the current market recovery. The stock is up nearly 40% from its mid-March low of $ 42.86. This week's earnings results may further support that rally.
