Daily Digest:
w/c 4 March 2024: US stock averages higher again to end the week, prodding at record levels; upcoming week's focus on the Fed's Powell testimony before Congress and the US Employment report

23rd January US Earnings Preview

Intermediate

An earnings release, a critical financial document, is issued quarterly by publicly traded companies to disclose financial performance. Mandated by regulatory authorities like the SEC, it includes income statements, balance sheets, and cash flow statements. This report communicates a company’s financial health, operational achievements, and future outlook to investors and analysts. Investors analyse it closely for insights into a company’s profitability, expense management, and market adaptability, influencing stock prices and market sentiment.

This earnings preview focuses on the most influential companies set to unveil their reports on January 23rd 2024. We will zero in on key industry players, offering insights into the anticipated results of Johnson & Johnson (J&J), Procter & Gamble (P&G), Netflix, Verizon, Texas Instruments, and General Electric.

These corporate giants span diverse sectors, and their quarterly reports are poised to provide valuable indicators of economic trends, market sentiment, and the overall health of their respective industries. Join us as we delve into the expectations and potential market impact surrounding the earnings releases of these prominent entities on the 23rd of January.

Johnson & Johnson (J&J)

Johnson & Johnson (J&J), with a substantial market cap of $391.11 billion, is poised to release its upcoming earnings report for Q4. Analysts project an earnings per share (EPS) of $2.28 and revenue of $21 billion. In the previous quarter, J&J reported an EPS of $2.66, surpassing the forecasted EPS of $2.52, consistently exceeding expectations by more than 5.5% for each of the last four quarters. As a key player in the healthcare sector, J&J’s financial performance is closely monitored, and these projections suggest a continued positive trend in their earnings, highlighting the company’s resilience and financial strength.

Johnson & Johnson

Procter & Gamble (P&G)

Procter & Gamble (P&G), a major player in the consumer goods sector, is gearing up for its upcoming Q4 earnings report. With a current market cap of $347.71 billion, P&G is expected to announce an earnings per share (EPS) of $1.70 and revenue of $21.47 billion for the quarter. In the previous quarter, P&G reported an EPS of $1.83, slightly exceeding the forecasted EPS of $1.72. Additionally, the company’s revenue in the previous quarter amounted to $21.87 billion, surpassing the predicted revenue of $21.58 billion. These figures indicate P&G’s resilience and competitiveness in the consumer goods market, and investors will be closely watching for insights into the company’s financial performance and strategic outlook so they can attempt to trade the news.

Netflix

As we all know, Netflix is a prominent player in the streaming industry and it i set to release its Q4 earnings report. With a current market cap of $213.75 billion, the company anticipates an earnings per share (EPS) of $2.21 and a revenue of $8.72 billion for the quarter. In the previous quarter, Netflix reported a higher EPS of $3.73 and revenue of $8.54 billion. As the streaming landscape evolves and competition intensifies, investors will closely scrutinise Netflix’s financial performance, subscriber growth, and the effectiveness of its content strategy. The forthcoming earnings announcement will provide valuable insights into the company’s ability to navigate challenges and sustain its position in the ever-changing digital entertainment space.

Netflix

Verizon

Verizon, a major player in the telecommunications sector, is on the brink of announcing its Q4 earnings report. With a current market cap of $165.98 billion, the company projects an earnings per share (EPS) of $1.08 and a revenue of $34.56 billion for the quarter. In the preceding quarter, Verizon reported an EPS of $1.22 and revenue of $33.34 billion, slightly surpassing the forecasted EPS of $1.18 and narrowly exceeding the expected revenue of $33.31 billion. Investors will closely monitor Verizon’s financial results, paying particular attention to its subscriber growth, network investments, and strategic initiatives in the competitive telecommunications landscape. 

Texas Instruments

The semiconductor giant Texas Instruments boasts a current market capitalization of $158.16 billion. The company anticipates an earnings per share (EPS) of $1.47 and revenue of $4.12 billion for the fourth quarter. In the previous quarter, Texas Instruments reported an EPS of $1.85 and revenue of $4.53 billion, closely aligning with the forecasted EPS of $1.84 and slightly below the expected revenue of $4.59 billion. With the semiconductor industry navigating global supply chain challenges, investors will closely scrutinise Texas Instruments’ financial performance, looking for insights into its resilience, production capabilities, and strategies to address ongoing market dynamics. The forthcoming earnings release will play a pivotal role in shaping perceptions of Texas Instruments’ positioning in the ever-evolving semiconductor landscape.

Texas Instruments

General Electric

General Electric (GE), a conglomerate with a diverse portfolio spanning aviation, healthcare, renewable energy, and more, holds a current market capitalization of $143.10 billion. As a multinational powerhouse, GE’s earnings reports are closely monitored for insights into the broader economic landscape, given its involvement in critical sectors. Heading into the fourth quarter, GE forecasts an earnings per share (EPS) of $0.8914 and revenue of $17.16 billion. In the previous quarter, GE outperformed expectations, reporting an EPS of $0.82 compared to the forecasted $0.56. The revenue for the same period stood at $17.35 billion, surpassing the expected $15.69 billion. The upcoming earnings release will be instrumental in gauging GE’s ability to navigate challenges and capitalise on opportunities within its diverse business segments, offering stakeholders valuable perspectives on the conglomerate’s financial health and strategic direction.

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

Comments on this analysis

Your email address will not be published. Required fields are marked *