😍 2022-07-18 12:35:19 – Paris/France.
- Some of America's biggest companies are filing their reports this week.
- Netflix (NASDAQ 🙂) subscriber growth is in the spotlight after its shares fell 70% this year.
- Tesla (NASDAQ:), which is struggling with a loss of production due to the shutdown in China, reports its results on Wednesday.
The results will be in the spotlight this week as some of America's biggest companies begin releasing their latest quarterly figures amid fears that the inflation rate, which has hit a four-decade high, rising interest rates and ongoing supply chain issues are not holding back. growth.
In addition to hard numbers, investors will be looking closely at earnings calls and management's comments on forward-looking statements for signs of slowing demand, cost-cutting measures or changes in spending plans. capital.
The highest inflation in decades is forcing the US Federal Reserve to tighten monetary policy aggressively, a move that has hurt businesses and households and made consumers more pessimistic about the economy.
However, analysts continue to expect some companies to post higher earnings, especially those that retain pricing power. Earnings for S&P 500 companies are expected to rise 5,6%, based on actual reports and estimates, according to data from Refinitiv I/B/E/S. As of Friday, 35 S&P companies had filed their reports, and 80% of them had released lemons that beat forecasts, according to Refinitiv.
Here is a short list of three stocks from different sectors that we are watching closely as the second quarter earnings season kicks into high gear:
1.IBM (NYSE :)
IBM will present its latest quarterly figures on Monday, July 18, after the market closes. The analyst consensus for IBM is $2,27 a share, with revenue of $15,09 billion for the quarter ended June 30.
Big Blue, which is in the midst of a major restructuring, is showing signs of getting more sales from its cloud business. In its latest earnings report, the New York-based company announced sales that beat analysts' expectations. The results showed strong demand for hybrid cloud offerings, indicating continued momentum in its transition to a cloud-based, software-focused consulting business.
Arvind Krishna, who replaced Ginni Rometty as CEO in 2021, is focusing on AI and the cloud to jump-start growth. Krishna has reorganized the company's business around a hybrid cloud strategy, which allows customers to store data on private servers and in multiple public clouds.
IBM shares, which closed at $139,92 on Friday, are up about 5% this year, outperforming the Nasdaq-100 index, down 27% over the same period.
Description: IBM Fair Value by InvestingPro+
Source: InvestingPro+
2. Netflix
The entertainment giant Streaming Netflix presents its results for the second quarter of 2022 this Tuesday, July 19, after the market close. Analysts expect earnings of $2,96 per share on sales of $8,03 billion.
Netflix is among the worst-performing mega-cap tech stocks in the current market meltdown, as the Los Gatos-based company lost its growth momentum after its pandemic-era subscriber spree waned. Shares of Netflix, which closed Friday at $189,11, are down nearly 70% this year.
After losing 200 customers in the first quarter, Netflix predicted in April that its subscriber base would shrink by another 000 million customers in the second quarter, a huge setback for a company that has steadily grown by 2 million subscribers or more per year. . Netflix also plans to cut spending on movies and TV shows in response to losing customers.
Description: NFLX Fair Value by InvestingPro+
Source: InvestingPro+
3. Tesla
Electric vehicle maker Tesla will report its second-quarter results on Wednesday, July 20, after market close. Analysts expect earnings of $1,86 per share on sales of $16,52 billion.
The Austin, Texas-based electric vehicle maker announced this month that vehicle deliveries fell in the second quarter for the first time in more than two years, hurt by the closure of its factory in China and problems. supply chain supply.
However, deliveries were up around 27% from the second quarter of last year, showing that Elon Musk's company has been able to handle supply chain issues much better than builders. traditional cars, which had to close factories and reduce production.
In addition to the near-term production challenges facing automakers, increasing macroeconomic headwinds are further clouding their growth prospects.
In a note this month, JPMorgan (NYSE 🙂 lowered its forecast for Tesla's second-quarter earnings per share from $2,26 to $1,70 and the estimate for the full year from $11,50 at $10,80 dollars, warning that high inflation in battery metals could weigh on Tesla profits.Tesla shares, after falling 31% this year, closed Friday at $720,20.
Description: TSLA Fair Value by InvestingPro+
Source: InvestingPro+
Disclaimer: The author has long positions on Netflix.
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SOURCE: Reviews News
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