Your Guide to This Week’s Major Reports, Featuring Netflix

Your guide to this week's biggest reports, including Netflix

Market Movers: What to Watch This Week in Earnings Reports

As we approach a short week on Wall Street, all eyes are set on the upcoming earnings reports that could significantly impact the stock market. At Extreme Investor Network, we believe it’s crucial for investors to stay ahead of the game. This week features some heavyweight S&P 500 companies such as Netflix, Johnson & Johnson, and United Airlines, among the 35 companies releasing their quarterly results.

Recap of Last Week’s Earnings Surprises

Before diving into this week’s anticipated reports, let’s take a moment to reflect on the recent earnings releases from major financial institutions. JPMorgan Chase impressively posted a record-breaking fourth quarter, while both Goldman Sachs and Morgan Stanley exceeded analysts’ expectations thanks to their robust trading revenue. Overall, more than 40 S&P 500 companies have reported earnings thus far, and an impressive 76% have beaten their forecasts, according to FactSet.

Key Earnings to Watch

D.R. Horton (DHI)

  • Release Time: Tuesday, before the market opens, with a conference call at 8:30 a.m. ET.

D.R. Horton is one of the largest homebuilders in the U.S., and the outlook for this quarter appears challenging. Analysts predict a more than 15% decline in earnings compared to the previous year. Wells Fargo has also lowered its fiscal first-quarter estimates, suggesting that we may see disappointing delivery numbers. Historically, D.R. Horton has beaten expectations 75% of the time, but given its recent performance—down 8% this year—many investors will be watching this release closely.

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Netflix (NFLX)

  • Release Time: Tuesday, after the market close, with a call scheduled at 4:45 p.m. ET.

Netflix continues to be a hot topic in the investment community. Last quarter, the streaming giant reported a remarkable 35% increase in ad-tier subscribers. This quarter, expectations are sky-high with an anticipated doubling of earnings year-over-year. Analysts are particularly keen on management’s guidance regarding content quality and live events. Given Netflix’s history of volatile stock swings post-earnings—such as an 11.1% rally last October—investors are on the lookout for signals that justify its premium valuation.

United Airlines (UAL)

  • Release Time: Tuesday, after market close, with the management call the following day.

United Airlines has emerged as a leader in the airline sector, boasting impressive year-over-year earnings growth forecasts nearing 50%. As the best-performing U.S. airline stock over the past year, there is increasing anticipation that United will continue its positive trend. Investors will be closely monitoring demand and pricing power, especially in light of new adventurous routes aimed at capturing a broader customer base.

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Johnson & Johnson (JNJ)

  • Release Time: Wednesday, before the market opens, with a conference call at 8 a.m. ET.

Johnson & Johnson has consistently impressed the market with nearly 96% of its earnings beats historically. However, this quarter analysts are expecting a dip of over 10% in earnings year-over-year. Investors will be looking for insights into procedural volume trends in MedTech, as well as prescription volume for key drugs. Although Johnson & Johnson tends to perform well in earnings, the stock has seen only a small average gain of 0.3% on earnings days.

Procter & Gamble (PG)

  • Release Time: Wednesday, before the market opens, with a call at 8:30 a.m. ET.

Procter & Gamble’s previous earnings surpassed expectations, but the ongoing challenges from declining sales in China may temper this quarter’s figures. Analysts predict stable earnings year-over-year, but concerns about currency dynamics and recent operational setbacks could weigh heavily on this quarter’s report. With seven consecutive quarters of beating expectations, it will be interesting to see if P&G continues this trend.

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Conclusion: Stay Informed and Invest Strategically

As an investor, understanding earnings reports is crucial for making informed decisions. This week’s earnings can serve as a market barometer, providing insights into consumer behavior, economic health, and the direction of various sectors. At Extreme Investor Network, we prioritize providing our readers with timely and unique insights. Let’s keep a close watch on how these reports unfold, as they will undoubtedly shape investment strategies in the near future.

Stay informed and maximize your investment potential with us—because at Extreme Investor Network, your financial future is our priority.