✔️ REVIEWS News – Paris/France.
Market activity over the coming trading week will be focused on the earnings of some of the largest US companies, which will present their latest quarterly figures against the backdrop of rising commodity prices, the geopolitical crisis in prices and persistent supply bottlenecks.
According to Bloomberg, recent analyst revisions and trends in corporate forecasts suggest that the surprises and above-average returns seen during the pandemic period may be coming to an end.
Unlike during the pandemic, when analysts raised their estimates ahead of the next earnings season, most analysts revised down their expectations for the first quarter of 2022 ahead of the earnings season.
However, analysts still expect some companies to post higher profits, especially those that continue to have high pricing power. Earnings are expected to rise 6,1% in the first quarter from 8,9% in the fourth quarter. This is according to I/B/E/S data from Refinitiv.
Below, we've listed three stocks across all sectors that we're watching closely as we head into QXNUMX earnings season:
1. Netflix
The supplier of Streaming Netflix (NASDAQ 🙂 will report its first quarter 2022 results on Tuesday, April 19, after markets close. Analysts expect earnings of $2,95 per share on sales of $7,94 billion.
Netflix has been under huge pressure since November 11, when the title hit an all-time high. Many investors are concerned about growing competition and slow subscriber growth, which is hurting revenue and profit margins. Los Gatos-based Netflix stock has lost more than 40% of its value so far this year due to these headwinds. The stock closed at $341,13 on Thursday.
With the presentation of the last one in January, the fall in prices accelerated considerably. This was triggered by the realization that subscriber growth is not recovering as quickly as analysts had hoped. Netflix is expected to add just 2,5 million new customers in the first quarter, compared to four million new customers last year.
2 Tesla
The electric car manufacturer Tesla Inc. (NASDAQ 🙂 reports first quarter results Wednesday, April 20 after market close. Analysts expect earnings of $2,24 per share on sales of $17,63 billion.
The Austin, Texas-based electric car maker delivered 310 vehicles worldwide in the first quarter. Elon Musk spoke of an "extraordinarily" difficult first quarter, due to continued supply chain disruptions. Sales figures were slightly above market expectations.
And yet, this feat proves that the company has been able to manage existing supply chain issues much better than traditional automakers, which have had to shut down manufacturing facilities and reduce production.
Investors are eagerly awaiting the company's forecast for the rest of 2022 and the state of demand in China, where coronavirus lockdowns threaten to impact production.
Tesla stock, down about 7% this year, closed at $985 on Thursday.
3. Procter & Gamble
The consumer goods giant Procter & Gamble (NYSE 🙂 will report third quarter 2022 results on Wednesday before the market opens. The consensus is for earnings per share of $1,3 on sales of $18,7 billion.
The maker of Downy fabric softener, Puffs facial tissue and Luvs diapers is among the companies suffering from supply shortages in addition to higher inflation. However, the Cincinnati, Ohio-based company wants to take countermeasures with price increases.
In January, the company told investors it now expects annual growth of 4-5%, down from 2-4% previously forecast. The reason: consumers are now better able to absorb rising prices, which means P&G can better cope with rising raw material, freight and currency costs.
P&G stock ended Thursday's trading at $158,57. So far this year it has lost 3% in value. The stock has gained around 19% in 2021, benefiting from higher demand for household items during the pandemic.
Read also :
SOURCE: Reviews News
Do not hesitate to share our article on social networks to give us a solid boost. 🍕