Why Netflix Stock Is Down By 4% Today

Netflix Stock Dives After Company Misses Earnings Estimates

Shares of Netflix are losing ground in premarket trading after the company released its second-quarter results.

Netflix reported revenue of $7.34 billion and GAAP earnings of $2.97 per share, beating analyst estimates on revenue and missing them on earnings.

Netflix stated that it finished the quarter with over 209 million paid memberships, which was above its own forecast. In total, the company added 1.5 million paid memberships in the second quarter.

The company also noted that average revenue per membership increased by 8% over the two-year period (last year’s numbers are not used for comparison as they were heavily impacted by coronavirus-related measures).

For the third quarter, the company projects revenue of $7.48 billion and earnings of $2.55 per share. The number of paid memberships is expected to increase from 209.18 million to 212.68 million.

What’s Next For Netflix Stock?

Netflix’ growth is slowing down, which is not surprising given the fact that people return to their normal lives after the blow dealt by coronavirus pandemic.

In addition, competition in the streaming space is increasing, and it looks that the market is worried that this segment becomes very competitive.

Netflix has recently stated that it wanted to expand its offerings into the gaming segment, but it remains to be seen whether this move will serve as an additional positive catalyst for the company’s stock.

Analysts expect that Netflix will report earnings of $12.96 per share in 2022, so the stock is trading at 39 forward P/E. This is a suitable valuation level for a company that grows fast, but Netflix’ growth has slowed down which makes the stock vulnerable to multiple compression.

It should be noted that the general market mood remains very bullish which should provide some support to pricey stocks, but it looks that Netflix stock will need additional catalysts to get out of the current wide trading range between $480 and $560.

For a look at all of today’s economic events, check out our economic calendar.

Netflix Misses Earnings Expectations Despite Beating Paid Subscriber Growth

The shares of Netflix are trading in the red zone in the early hours of Wednesday after the company reported its second-quarter 2021 earnings.

Netflix Subscribers Increase Massively in Q2

Entertainment giant Netflix presented its earnings report yesterday with some interesting data reported by the company. Analysts had estimated that Netflix would add 1.19 million new paid subscribers in the second half of the year. However, the company surpassed that mark after adding 1.54 million new users.

Netflix now has over 209 million paid subscribers globally. The growth has decreased over the past year. The roll-out of vaccines means that more people are resuming their daily activities, and some have no need for Netflix subscriptions for now.

For the third quarter of the year, Netflix expects to add 3.5 million new users. The optimism stems from the company’s slate of content, with most of its movies and TV shows expected to be released earlier this year were pushed back to the second half of 2021 and next year.

In the first half of 2021, Netflix spent $8 billion on content and expected to add another $4 billion in the second half of the year. Netflix stated that if it achieves its forecast, it would have added over 54 million paid subscribers in the past 24 months.

Netflix Misses Earnings Expectations, Stock Price Slips

Despite recording a better-than-expected addition of paid subscribers, Netflix missed its earnings expectations. The earnings per share (EPS) was $2.97 compared to the $3.16 expected by the Refinitiv survey of analysts.

NFLX stock chart. Source: FXEMPIRE

The company didn’t disappoint in terms of revenue. The Q2 revenue was $7.34 billion vs. $7.32 billion expected. Despite that, the shares of Netflix dropped following the earnings report. NFLX is down by 0.23% in the early hours of Wednesday and is trading at $531 per share.

Year-to-date, NFLX has underperformed. The stock began trading at $540 per share at the start of the year but has dropped after reaching a yearly high of $586 in January.

Today’s Market Wrap Up and a Glimpse Into Wednesday

Investors couldn’t stay away from stocks long after yesterday’s meltdown. All three major market indices finished the day in the green with gains of more than 1%. The Dow Jones Industrial Average tacked on nearly 550 points, while the S&P 500 and Nasdaq each gained 1.5% on the day. Travel-related stocks as well as the financial sector and industrials all took back lost ground.

Investors had fled stocks on Monday on fears of the Delta variant, but cooler heads prevailed today. Apple was among the stocks that redeemed itself after sharp losses on Monday. The tech giant advanced almost 3% on the day. Apple reportedly postponed employees’ return to the offices until the fall due to the spread of the COVID-19 variant.

 

The oil price similarly found its footing, with Brent crude climbing 1.1% higher on the heels of yesterday’s sell-off of nearly 7%. Investors appeared to have had lumped oil in with their Delta variant-related fears, but it was just a blip on the radar.

Stocks to Watch

Netflix shares were under pressure in extended-hours trading after the streaming giant fell short of subscriber growth expectations. The company added 1.5 million subscribers vs. estimates for 1.75 million, as per Factset. Netflix also missed on the bottom line while beating on the top line.

Netflix blamed the pandemic for its uneven subscriber growth, and management is eyeing 3.5 million new members in Q3, which is weaker than expected. Chief executive Reed Hastings also made it official — Netflix is making a push into gaming.

Restaurant stock Chipotle Mexican Grill had a strong Q2 as customers flocked back to its locations after last year’s lockdowns kept them away. Revenue and earnings beat Wall Street estimates, and Chipotle expects the momentum to continue into Q3, as evidenced by an outlook for same-store sales growth in the double-digit percentage range. Chipotle shares are up 4% in after-hours trading.

AMC Entertainment saw its value balloon by nearly 25% in the session, sending the stock back above USD 40 per share.

Look Ahead

Investors will be looking to see if the stock market can extend today’s rally. On the earnings front, Coca-Cola is set to report its quarterly results ahead of the opening bell, as is Johnson & Johnson. Energy company Kinder Morgan’s earnings come out after the closing bell.

Netflix Holds Its Own in Midst of Market Sell-Off

It’s hard to spot a winner in today’s session, as the bottom appears to have fallen out from beneath stocks. The Dow Jones Industrial Average is suffering what is shaping up to be its steepest drop of the year so far, and the other major indices are in freefall too.

Netflix, which is a component in both the S&P 500 and the Nasdaq, has been meandering between positive and negative territory. Most recently, it succumbed to the selling pressure but its declines are modest. Investors appear to be confident about the streaming giant’s upcoming earnings, which are planned for tomorrow after the bell.

Potential Gaming Gains

One of the catalysts for Netflix’s stock is a planned push into video games, for which the company has brought a seasoned gaming executive on board. Netflix tapped Mike Verdu, an alum of Electronic Arts and Facebook, to lead its gaming efforts.

ARK analyst Nicholas Grous suggests that Netflix could start its gaming push by “distributing third-party titles” and eventually build its own “in-house titles.” Games could reportedly make their way onto Netflix’s platform in the next 12 months. As Grous points out, the strategy certainly paid off for Netflix and investors with content streaming.

Incidentally, Netflix recently inked a multi-year contract with Sony in which the film giant’s movies will be available on the streaming platform starting next year. Speculation on social media suggests the relationship could potentially spill over into gaming.

Analyst Optimism

Wall Street analysts are expecting good things from Netflix’s second quarter. JPMorgan’s Doug Anmuth remains “positive into earnings” amid the streaming company’s content lineup for the balance of the year. Anmuth has a bullish USD 600 price target on the stock, which is currently hovering at USD 529.

Investors are focused on the number of new subscribers that Netflix managed to add in the quarter. Netflix is up against tough comparisons from the pandemic year when the company saw explosive numbers. Consumers were stuck at home due to the lockdowns and turned to streaming content for entertainment.

The JPMorgan expert is predicting 2 million added subscribers for Q2, which he upped from his former forecast of 1.6 million. He expects the momentum to continue for the final two quarters of the year.

Earnings vs Inflation – What Is The Right Bet?

As investment money will always be looking for a place to roost many stocks still look like the best opportunity for alpha, especially some of your bigger high-tech companies like Microsoft, Google, Facebook, etc… who don’t face the same headwinds created by supply chain dislocations, higher commodity prices, etc.

Fundamental analysis

Bulls are hoping to see more money lured into the market by strong Q2 earnings which have so far failed to ignite a meaningful rally. Analyst expectations for S&P 500 company earnings is still around +65%, something stock bears argue is lofty considering the extreme level of supply chain dislocations and labor shortages.

There is also a lot of debate about whether corporate profit gains are “peaking” in the face of slower growth in the quarters ahead as the reopening boom begins to fade. Remember, investors place bets on the future, not what happened last quarter.

The earnings pace really picks up next week with highlights including IBM on Monday; Chipotle and Netflix on Tuesday; ASML, CocaCola, Novartis, and Verizon on Wednesday; Abbott Labs, AT&T, Biogen, Capital One, Dow Inc., Intel, Snap, Southwest Airlines, Twitter, and Union Pacific on Thursday; and American Express, Honeywell, and Nextera on Friday.

Inflation

One of the biggest factors that seem to be weighing on investor sentiment continues to be inflation. The latest indication of rising costs was reflected last week in U.S. Import Prices, which climbed for an eighth straight month in June.

However, the year-on-year increase slid to +11.2%, down from +11.6% in May is an encouraging sign that some inflationary pressures might be starting to ease. Federal Reserve Chairman Jerome Powell, testifying before the Senate Banking Committee yesterday, repeated the script he’s stuck with for months, saying inflation will likely remain elevated in the coming weeks and months before moderating.

Powell also told lawmakers that the Fed is not in a hurry to start paring its monthly asset purchases but he stressed that the central bank is prepared to adjust policy if they see signs of inflation moving “materially and persistently beyond levels consistent with our goal.” Wall Street increasingly expects the Fed to start trimming asset purchases later this year and even start lifting rates as soon as Q4 2022.

The Fed meets next on July 27-28 but most analysts think Powell will wait to make any big policy change announcements at either the annual Jackson Hole symposium at the end of August or possibly the FOMC’s September policy meeting. Central banks in Canada and New Zealand this week scaled back their asset purchase schemes which some worry could start to put pressure on central bankers in other developed countries to also tighten.

The European Central Bank releases its latest policy decision next Thursday. Bulls still largely believe that U.S. growth will be able to outpace “transitory” inflation pressures but the outlook for some companies could dim if the Fed starts reining in its “easy money” policies sooner than investors have been anticipating.

sp500 analysis forecast 18 july 2020

SP500 technical analysis

SP500 pulled back last week after another attempt to break out. There is no surprise we see such choppiness in the middle of summer. Moreover, very likely this price activity will stay for a few more weeks. We are still in a bull market. However, the risk of deep pullback is rising. If that happens, SP500 will target to close the gap near 4000.

On the other hand, if the price sustains above Gann resistance 4400, bulls will target 4500 at least. Two of my favourite indicators are giving opposite signals now. So, I don’t have any strong bias at the moment. Advance Decline Line remains bearish. At the same time, Insider Accumulation is bullish. In general, swing traders have to focus on daily support and resistance. Likely it will take few more weeks to see a real direction. Short-term traders can use Gann levels and Cycles on 4h charts to find trading opportunities.

Earnings to Watch Next Week: IBM, Netflix, Coca-Cola, Twitter, Intel and American Express in Focus

Earnings Calendar For The Week Of July 19

Monday (July 19)

IN THE SPOTLIGHT: IBM

The Armonk, New York-based technology company is expected to report its second-quarter earnings of $2.32 per share, which represents year-over-year growth of over 6% from $2.18 per share seen in the same quarter a year ago.

The world’s largest computer firm would post revenue growth of about 1% to $18.24 billion. In the last four consecutive quarters, on average, the company has delivered earnings of over 5%.

The better-than-expected results, which will be announced on Monday, July 19, would help the stock recover its last year’s losses. IBM shares rose about 12% so far this year.

“We expect IBM to marginally beat the consensus estimates for revenues and earnings. The company has reported better than expected earnings figures in each of the last four quarters while revenue beat consensus in three of the last four quarters,” noted analysts at Trefis.

“In the past year the company has increased its investment in R&D and capex and since October has acquired seven companies focused on hybrid cloud and AI. As the pace of vaccination increases and countries are opening up, we expect the momentum to continue in the second-quarter FY2021 results as well. Our forecast indicates that IBM’s valuation is around $140 per share, which is in line with the current market price of $140.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 19

Ticker Company EPS Forecast
TSCO Tractor Supply $2.97
PPG PPG Industries $2.20
JBHT J B Hunt Transport Services $1.57
CCK Crown $1.78
STLD Steel Dynamics $3.38
PACW Pacwest Bancorp $0.99
WTFC Wintrust Financial $1.59
FNB FNB $0.28
SFBS ServisFirst Bancshares $0.93
IBM IBM $2.32
PLD ProLogis $0.45
ACI AltaGas Canada $0.68
ZION Zions Bancorporation $1.29
NVR NVR $72.35
ELS Equity Lifestyle Properties $0.28
AN AutoNation $2.67

Tuesday (July 20)

IN THE SPOTLIGHT: NETFLIX, UNITED AIRLINES HOLDINGS

NETFLIX: The California-based global internet entertainment service company is expected to report its second-quarter earnings of $3.18 per share, which represents year-over-year growth of 100% from $1.59 per share seen in the same quarter a year ago.

The streaming video pioneer would post revenue growth of about 19% to around $7.3 billion. In the last four consecutive quarters, on average, the company has delivered earnings of over 5%.

“Areopening consumer and the lingering effects of 2020’s production delays suggest risk to consensus 2Q/3Q estimates. However, more content is on the way, supporting an increase in net additions in 4Q21/’22. In this cross-asset report, we reiterate OW on shares and reiterate our recommendation to buy 10Y bonds in credit,” noted Benjamin Swinburne, equity analyst at Morgan Stanley.

“We believe share performance is highly dependent on increasing global membership scale. Proven success in the US and initial international markets provides a roadmap to success in emerging markets, and scale should allow NFLX to leverage content investments and drive margins. Higher global broadband penetration should increase the NFLX addressable market, driving member growth and providing further opportunity given NFLX’s global presence. Longer-term, we see the ability to drive ARPU growth, particularly given increased original programming traction.”

UNITED AIRLINES HOLDINGS: One of the largest airlines in the world is expected to report a loss for the sixth consecutive time of $4.21 in the second quarter of 2021 on July 20 as the aviation service provider continues to be negatively impacted by the ongoing COVID-19 pandemic and renewed travel restrictions.

However, that would represent a year-over-year improvement of about 55% from -$9.31 per share seen in the same quarter a year ago.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 20

Ticker Company EPS Forecast
DOV Dover $1.82
OMC Omnicom $1.38
SBNY Signature Bank $3.14
PM Philip Morris International $1.54
HCA HCA $3.16
SYF Synchrony Financial $1.38
KEY KEY $0.54
ALLY Ally Financial $1.50
MAN ManpowerGroup $1.41
GATX GATX Corp $1.03
BMI Badger Meter $0.46
ONB Old National Bancorp $0.40
FMBI First Midwest Bancorp $0.38
NFLX Netflix $3.18
CNI Canadian National Railway USA $1.49
CMG Chipotle Mexican Grill $6.50
IBKR Interactive Brokers $1.03
UAL United Airlines Holdings -$4.21
PNFP Pinnacle Financial Partners $1.44
RXN Rexnord $0.50
UCBI United Community Banks $0.62
SNBR Scs Group Plc $1.07
FULT Fulton Financial $0.33
RUSHA Rush Enterprises $0.79
ISRG Intuitive Surgical $3.07
UBS UBS Group $0.42
TRV Travelers Companies $2.38
HAL Halliburton $0.22
CFG Citizens Financial $1.10
SNV Synovus Financial $1.03
IRDM Iridium Communications -$0.06
NEOG Neogen $0.14
EXPO Exponent $0.42
RNST Renasant $0.77

Wednesday (July 21)

IN THE SPOTLIGHT: COCA-COLA

The world’s largest soft drink manufacturer is expected to report its second-quarter earnings of $0.56 per share, which represents year-over-year growth of over 30% from $0.42 per share seen in the same quarter a year ago. The company’s revenue would grow over 30% to $9.4 billion.

“We are Overweight Coca-Cola (KO) after significant stock underperformance given COVID impacts on KO’s on-premise eating / drinking out business (~40% of sales) and gas & convenience (~10%) with gov’t mandated restaurant closures and reduced foot traffic. COVID impacts drove a large -9% organic sales decline in 2020, but we forecast a recovery to ~8% organic growth in 2021/2022 with a post-COVID recovery in away-from-home,” noted Dara Mohsenian, equity analyst at Morgan Stanley.

“We believe Coke’s LT topline growth outlook is above peers, with strong pricing power, and favorable strategy tweaks under Coke’s CEO, including increased innovation and a cultural shift towards a total beverage company.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 21

Ticker Company EPS Forecast
JNJ Johnson & Johnson $2.29
ASML ASML $2.98
KO Coca-Cola $0.56
ANTM Anthem $6.34
NDAQ Nasdaq Omx $1.72
RCI Rogers Communications USA $0.62
NTRS Northern $1.71
BKR Baker Hughes Co $0.16
MTB M&T Bank $3.65
MKTX MarketAxess $1.72
LAD Lithia Motors $6.01
HOG Harley Davidson $1.21
BOKF BOK Financial $1.83
STX Seagate Technology $1.84
KNX Knight Transportation $0.88
CCI Crown Castle International $0.68
CSX CSX $0.37
DFS Discover Financial Services $4.01
EFX Equifax $1.71
GL Globe Life Inc $1.83
LVS Las Vegas Sands -$0.15
SEIC SEI Investments $0.91
WHR Whirlpool $5.95
GGG Graco $0.61
REXR Rexford Industrial Realty $0.09
OMF OneMain Holdings $2.12
THC Tenet Healthcare $1.07
FR First Industrial Realty $0.22
SLM SLM $0.37
LSTR Landstar System $2.33
SLG SL Green Realty $0.17
VMI Valmont Industries $2.50
RLI RLI $0.75
UFPI Universal Forest Products $1.56
STL Sterling Bancorp $0.50
UMPQ Umpqua $0.45
FTI FMC Technologies -$0.01
CNS Cohen & Steers $0.82
MC Moelis & Company $0.83
TCBI Texas Capital Bancshares $1.24
BXS BancorpSouth $0.67
PLXS Plexus $0.91
NVS Novartis $1.54
SAP SAP $1.44
TXN Texas Instruments $1.83
EBAY eBay $0.95
KMI Kinder Morgan $0.19
URI United Rentals $4.90
IPG Interpublic Of Companies $0.43
FNF Fidelity National Financial $1.41
CMA Comerica $1.60
MTG MGIC Investment $0.42
FCFS FirstCash $0.60
CVBF CVB Financial $0.35
PTC PTC $0.63
PPERY PT Bank Mandiri Persero TBK $0.18

Thursday (July 22)

IN THE SPOTLIGHT: TWITTER, INTEL

TWITTER: The online social media company that enables users to send and read short 140-character messages called “tweets”, is expected to report its second-quarter earnings of $0.07 per share, which represents year-over-year growth of over 105% from a loss of -$0.16 per share seen in the same quarter a year ago.

The San Francisco, California-based company would post revenue growth of about 55% to $1.06 billion.

“Lack of Negative Revisions and Relative Valuation: Valuation continues to be expensive, but we think investors are likely to continue to pay a premium for TWTR given 1) continued turnaround progress and 2) platform scarcity,” noted Brian Nowak, equity analyst at Morgan Stanley.

“Execution Risk Remains Around Driving Advertiser ROI: Advertiser ROI has clearly improved on Twitter, but the company needs to improve ad targeting and measurability to compete with the larger players. To do that it will have to further personalize the content that users see and use its data more effectively, both of which remain key strategic challenges (and priorities) for management.”

INTEL: The California-based multinational corporation and technology company is expected to report its second-quarter earnings of $1.07 per share, which represents a year-over-year decline of about 14% from $1.23 per share seen in the same quarter a year ago. The company’s revenue would fall over 10% to $17.73 billion.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 22

Ticker Company EPS Forecast
ULVR Unilever £1.29
PSON Pearson £8.40
ABB ABB $0.36
CBSH Commerce Bancshares $1.02
DOW Dow Chemical $2.36
DHR Danaher $2.05
FITB Fifth Third Bancorp $0.81
FAF First American Financial $1.70
RS Reliance Steel & Aluminum $4.73
T AT&T $0.79
WBS Webster Financial $0.99
UNP Union Pacific $2.54
BKU BankUnited $0.86
SNA Snap-On $3.21
ABT Abbott $1.02
NEM Newmont Mining $0.81
MMC Marsh & McLennan Companies $1.42
BIIB Biogen $4.60
TRN Trinity Industries $0.09
DGX Quest Diagnostics $2.86
ALLE Allegion $1.30
CLF Cliffs Natural Resources $1.52
TPH Tri Pointe Homes $0.81
VLY Valley National Bancorp $0.29
EWBC East West Bancorp $1.39
DHI DR Horton $2.82
SON Sonoco Products $0.86
POOL Pool $5.49
WSO Watsco $3.01
SAFE 3 Sixty Risk $0.33
CSL Carlisle Companies $2.22
WRB W.R. Berkley $0.98
SAM Boston Beer $6.69
SIVB SVB Financial $6.42
CE Celanese $4.34
RNR Renaissancere $4.62
TWTR Twitter $0.07
INTC Intel $1.07
WSFS Wsfs Financial $0.90
GBCI Glacier Bancorp $0.72
ABCB Ameris Bancorp $1.20
OZK Bank Ozk $0.92
ASB Associated Banc $0.47
FFBC First Financial Bancorp $0.52
VICR Vicor $0.33
VRSN Verisign $1.36
COF Capital One Financial $4.57
INDB Independent Bank $1.08
ASR Grupo Aeroportuario Del Sureste $36.49
SKX Skechers USA $0.51
RHI Robert Half International $1.05
FE FirstEnergy $0.57
SNAP Snap -$0.18
AEP American Electric Power $1.12
LUV Southwest Airlines -$0.27
AAL American Airlines -$2.12
DPZ Dominos Pizza $2.86
ALK Alaska Air -$0.62
NUE Nucor $4.76
BX Blackstone $0.78
FCX Freeport-McMoran $0.75
SASR Sandy Spring Bancorp $1.20
GPC Genuine Parts $1.52
ORI Old Republic International $0.53
HTH Hilltop $1.03
CROX Crocs $1.54
BCO Brinks $0.98
FFIN First Financial Bankshares $0.38
CNA Centrica £1.80

Friday (July 23)

Ticker Company EPS Forecast
HON Honeywell International $1.94
SLB Schlumberger $0.26
AXP American Express $1.63
KMB Kimberly Clark $1.74
NEP Nextera Energy Partners $0.61
ROP Roper Industries $3.67
RF Regions Financial $0.53
NEE NextEra Energy $0.69
AIMC Altra Industrial Motion $0.81
GNTX Gentex $0.44
FBP First Bancorp FBP $0.22
VTR Ventas -$0.08
GT Goodyear Tire & Rubber $0.16
ACKAY Arcelik ADR $0.48
MGLN Magellan Health $0.60
SXT Sensient Technologies $0.78

 

Today’s Market Wrap Up and a Glimpse Into Thursday

Stocks finished the day mixed as comments out of Federal Reserve Chairman Jerome Powell resonated with investors. The Dow Jones Industrial Average and the S&P 500 finishing with gains while the Nasdaq extended its recent declines. Powell told lawmakers he expects inflation will calm down while monetary policy should remain intact.

Bank of America flexed its muscle with a more than doubling of profits in the second quarter. Investors, however, focused on falling revenue and punished the stock, sending shares lower by 2.5%.

Stock index futures are treading lightly on Wednesday evening as investors brace for another round of jobs data coupled with the continuation of the Q2 earnings parade.

Stocks to Watch

Netflix is trading 2% higher in the after-hours market. The company has snagged a seasoned video game executive for its gaming venture. Netflix hired Facebook’s VP of augmented reality, Mike Verdu, as it looks to take share in the gaming space. Verdu also held stints at Electronic Arts and Zynga.

Meme stocks were under pressure today, with shares of AMC Entertainment tumbling 15% in the regular session. The declines continued in extended-hours trading. The selling pressure also spilled over into GameStop, which could be feeling the heat from Netflix’s gaming push.

There could be some M&A news coming up. Cybersafety company NortonLifeLock announced it could be combining with British cybersecurity play Avast. Shares of NortonLifeLock came under pressure on the development and are down more than 2% in extended-hours trading.

Look Ahead

Investors will be looking to see if stocks return to their record levels on Thursday or continue to trade cautiously amid an uncertain inflationary outlook. On the earnings front, banks will continue to report their results including Morgan Stanley.

Economic data could also influence the direction of stocks. Industrial production for June is expected at 9:15 a.m. ET. Wells Fargo economists described manufacturing demand as “robust.” While input costs are high and supply chain constraints are an issue, the economists are predicting a 0.8% increase for June.

In addition, unemployment claims come out on Thursday. Consensus estimates call for a decline in the number of claims to levels not seen since before the pandemic reared its head.

Has Walt Disney Topped Out?

Dow component Walt Disney Co. (DIS) topped out just above 200 in March following a historic 257% advance off March 2020’s 6-year low. The stock has lost altitude since that time, despite the reopening of California Disneyland, moviegoers flocking back to multiplexes, and the success of highly-touted Disney+ entries “Loki” and “WandaVision”. Q2 2021 earnings in May failed to stop the slide, missing revenue expectations with a 13.4% year-over-year decline.

Slowing Disney+ Subscriber Growth

The entertainment giant’s cruise ships remain landlocked until at least Aug. 6 despite relaunching by Floridian rivals, further impacting 2021 income. “Black Widow” and other Disney films should do relatively well, as evidenced by the solid “F9” box office in the last two weeks. However, the slate of entries includes the next generation of Marvel films that could fall flat with an audience seeking raw entertainment, rather than Hollywood’s usual dose of heavy-handed political messaging.

Worse yet, The Information reported last week that Disney+ U.S. growth slowed sharply in the first half of 2021, following a similar shortfall at Netflix Inc. (NFLX). Its common knowledge the pandemic pulled future demand forward due to endless lockdowns, reducing 2021’s pool of available subscribers. As that publication notes “The slowdown in growth at Disney+ reinforces long-standing questions about Disney’s ability to expand the streaming service to its target of 230 million to 260 million subscribers globally by the end of the 2024 fiscal year.”

Wall Street and Technical Outlook

Wall Street consensus now stands at an ‘Overweight’ rating based upon 21 ‘Buy’, 2 ‘Overweight’, 6 ‘Hold’, and 1 ‘Underweight’ recommendation. Price targets currently range from a low of $147 to a Street-high $230 while the stock closed Friday’s session more than $30 below the median $212 target. This humble placement supports higher prices if recently-reported metrics are inaccurate and the company reports higher-than-expected subscriber growth in the Aug. 12 release.

Disney failed a breakout above the 2015 high at 122 during the pandemic decline and rallied to a new high in December. The subsequent uptick stalled after mounting 200 in March, giving way to a persistent slide that broke 50-day moving average support in April. The failure to remount that barrier in the last three months raises a red flag, highlighting continued weakness. In addition, the pullback has flipped long-term relative strength readings into an active sell cycle that project continued weakness into the fourth quarter.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in the aforementioned securities at the time of publication. 

Netflix Surges Higher After Upgrade

Netflix Inc. (NFLX) rallied more than 5% last week, hitting a two-month high after a tier one upgrade and Spielberg deal lifted the stock above the psychological 500 level. The rally has partially filled the big Apr. 21st gap, printed when the streaming giant missed Q1 2021 subscriber estimates and lowered Q2 guidance. This marks the fourth time that price action has shaken off selloffs through that trading floor, predicting that support is growing stronger.

Pandemic Hangover

The company benefited from the pandemic, adding millions of subscribers who were stuck in their homes due to lockdowns. However, two negative forces have intervened in the last year, reducing the 12-month rolling return to zero. First, the pandemic pulled future subscriptions forward, reducing the population of potential customers. Second, the onslaught of new streaming services reached a saturation point, forcing customers to pick and choose between subscriptions.

Credit Suisse analyst Douglas Mitchelson upgraded the stock to ‘Outperform’ on Friday, noting, “Our tracking of Netflix releases, in addition to management commentary for the past year, suggests a strong August-December content slate with numerous potential top-of-funnel titles – and we expect a stronger full year slate in 2022 than 2021, led by Stranger Things Season 5 and Bridgerton Season 2. This follows a much lighter-than-normal first five months of the year, along with price increase churn and pandemic pull forward hangover”.

Wall Street and Technical Outlook

Wall Street consensus stands at an ‘Overweight’ rating based upon 28 ‘Buy’, 5 ‘Overweight’, 6 ‘Hold’, and 1 ‘Underweight’ recommendation. In addition, four analysts are telling shareholders to close positions and move to the sidelines. Price targets range from a low of $340 to a Street-high $1,154 while the stock ended the week about $90 below the median $617 target. Taken together with last week’s positive action, the current uptick could easily stretch toward $600.

Netflix broke out above the 2018 high at 423 in April 2020 and took off in a rally that topped out at 575 in July. A January breakout failed after posting an all-time high at 593 while price action in the last year has endured multiple tests at the 500 level. The slight upward tilt of the pattern has now evolved into a shallow rising channel, with heavy resistance centered at 610. Swing trades make more sense in this mixed configuration than long-term investments.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication.

Apple, Facebook Drive Nasdaq Futures Higher as Earnings Roll In

By Shivani Kumaresan

Apple Inc gained 2.7% in premarket trading after posting sales and profits ahead of Wall Street estimates, led by much stronger-than-expected iPhone and Mac sales.

Facebook Inc jumped 7.3% on beating analysts’ expectations for both quarterly revenue and profit, helped by a surge in digital ad spending during the pandemic, along with higher ad prices.

Other megacap companies, including Microsoft Corp, Alphabet Inc and Netflix Inc, rose between 0.2% and 1.1%.

Official data is likely to show that the number of Americans filing new claims for jobless benefits rose last week, while the Commerce Department is expected to report a 6.1% rise in first-quarter GDP.

More earnings reports from Dow components rolled in, with Caterpillar Inc rising 2.8% after the heavy equipment maker reported a rise in adjusted first-quarter profit. Drugmaker Merck & Co Inc, however, slid 3.2% on posting a 1.2% fall in quarterly profit.

Global shares extended gains after the Federal Reserve said it was too early to consider rolling back emergency support for the economy, and U.S. President Joe Biden proposed a $1.8 trillion stimulus package.

At the conclusion of the U.S. central bank’s latest policy meeting on Wednesday, Fed Chair Jerome Powell acknowledged the economy’s growth, but said there was not yet enough evidence of “substantial further progress” toward recovery to warrant a change in policy.

At 6:44 a.m. ET, Dow e-minis were up 177 points, or 0.52%, S&P 500 e-minis were up 30.25 points, or 0.72%, and Nasdaq 100 e-minis were up 138.75 points, or 1%.

Shares of electric vehicles companies, including Tesla Inc, Nikola Corp, rose 1.1% and 2.6%, respectively, as sales picked up speed in the first quarter, according to the International Energy Agency.

Amazon.com Inc, Twitter Inc, Mastercard Inc and Gilead Sciences Inc are also expected to report first-quarter earnings later in the day.

(Reporting by Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty)

Why Shares Of Netflix Are Down By 8% Today?

Netflix Video 21.04.21.

Netflix Stock Falls As Subscriber Growth Slows

Shares of Netflix found themselves under strong pressure after the company released its quarterly results. Netflix reported revenue of $7.2 billion and GAAP earnings of $3.75 per share, beating analyst estimates on both earnings and revenue.

While financial results exceeded expectations, the market was very disappointed with the pace of subscriber growth. The company added 3.98 million global streaming paid memberships in the first quarter compared to its previous guidance of 6 million. In addition, Netflix expects to add just 1 million global streaming paid memberships in the second quarter of this year.

The company stated that “paid membership growth slowed due to the big Covid-19 pull foward in 2020 and a lighter content slate in the first half of this year, due to Covid-19 production delays”.

Netflix added that it anticipated a strong second half of this year as new seasons of its leading shows returned to the screen. The company also noted that streaming continued to gain market share from linear TV which was a long-term trend in entertainment.

What’s Next For Netflix?

Analysts expect that Netflix will report earnings of $9.89 per share this year and $12.99 per share in 2022 so the stock is trading at roughly 40 forward P/E even after the current sell-off. At such valuation levels, companies must meet growth targets, or their shares may quickly find themselves under pressure as it happened in the case of Netflix.

Some analysts have already upgraded the stock as they mentioned the opportunity to buy shares of Netflix at a discount to recent prices. However, Netflix will still have to show a clear path to robust growth amid serious competition in the domestic market and growing competition in the international market.

Netflix stated that it was less than 10% of TV screen time in the U.S. and even smaller in other regions which provided an opportunity to gain more market share. However, the company will have to convince the market that it will be able to return to higher growth or its shares will trade at a lower valuation.

For a look at all of today’s economic events, check out our economic calendar.

Netflix Shares Slump About 9% as Paid Membership Growth Slows

The California-based global internet entertainment service company Netflix’s shares slumped about 9% in extended trading on Tuesday after the company flagged that growth in paid memberships slowed due to COVID-19 production delays.

However, the streaming video pioneer reported adjusted earnings per share of $3.75 per share in the first quarter, far exceeding analysts’ expectations of $2.97 per share. Revenue jumped 24% to $7.16 billion in the quarter ended on March 31, beating Wall Street consensus estimates of $7.13 billion.

Netflix said it ended Q1 with 208 million paid memberships, up 14% year over year, but below the guidance forecast of 210 million paid memberships. That was largely due to slower production during the ongoing COVID-19 pandemic.

The company forecasts paid net additions of 1 million in the second quarter, below the market expectations of 4.8 million.

Netflix shares slumped about 9% to $501.89 in extended trading on Tuesday.

Analyst Comments

“Bracing for a challenging 1H21 due to tough YoY compares, the results appear to be softer than expected. With 1Q21 done, Netflix expects 1H21 net additions of +5mm vs. our prior estimate of +9.5mm. This appears primarily a gross additions issue, as churn is down YoY and engagement up YoY. In other words, after 2020’s pull forward of growth, gross activations are down meaningfully in 1H21. This appears to be exacerbated by a 2H21-heavy content slate as a result of production delays tied to COVID-19,” noted Benjamin Swinburne, equity analyst at Morgan Stanley.

“We lower our 2021E paid net adds to roughly 19mm (vs. prior 25mm), with an expectation for re-acceleration in 2022E as COVID-related comps and the content slate normalize. We continue to forecast roughly 20% EBIT margins in ’21E, with roughly +300bp of annual margin expansion thereafter. Our consolidated EBIT forecast comes down 2% in ’21E and down 3-4% in ’22E, driven by the lower subscriber outlook. Our $650 price target (vs. prior $700) is based on our DCF-driven valuation and implies ~9x our ’22E revenues. Refer to Exhibit 7 for additional details on changes to our estimates.”

Netflix Stock Price Forecast

Thirty-one analysts who offered stock ratings for Netflix in the last three months forecast the average price in 12 months of $618.41 with a high forecast of $750.00 and a low forecast of $340.00.

The average price target represents a 12.53% increase from the last price of $549.57. Of those 31 analysts, 22 rated “Buy”, five rated “Hold” while four rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $650 with a high of $850 under a bull scenario and $400 under the worst-case scenario. The firm gave an “Overweight” rating on the internet television network’s stock.

Several other analysts have also updated their stock outlook. Piper Sandler lowered the target price to $600 from $605. Evercore ISI slashed the price target to $655 from $665. Credit Suisse Group set a $586 target price on Netflix and gave a neutral rating.

Moreover, Canaccord Genuity upped their price objective to $670 from $630 and gave the company a buy rating. Benchmark reduced their price objective to $472 from $485 and set a sell rating.

Check out FX Empire’s earnings calendar

How Might NFLX Share Price React to Q1 Earnings?

Recall that the pandemic prompted a massive front-loading of Netflix subscriptions, as households starved for entertainment amid lockdowns drove the company’s global customer base past the 200 million mark by the end of last year.

For Q1 2021, Netflix has guided for an additional 6 million subscribers, while Wall Street expects that tally to be closer to 6.3 million. That’s still a pretty healthy figure, even though it pales in comparison to the 15.77 million new paying members who signed on during the same period a year ago.

Sauntering subscriber and share price growth

Looking ahead, shareholders appear cognizant that Netflix would find it tough to replicate the growth spurts it experienced last year. The same can be said for its share price.

After surging by 67.1% in 2020, Netflix has only managed a gain of 2.54% so far this year. That’s slower in comparison to the year-to-date performances of:

Netflix has clearly been a laggard within the famed FAANG group, with the streaming company now languishing 5.44% below its record high, set on 20 January 2021, which was also the day after its last quarterly earnings announcement.

From a technical perspective, Netflix’s share prices found support at its 200-day simple moving average (SMA) in March, using it as a platform to launch back above its 50-SMA this month. However, with the bullish momentum in the stock plateauing, while a close above the $555 mark having proved hard to come by since mid-February, Netflix could do with a positive catalyst to catch up with the rest of its peers.

Perhaps that catalyst may arrive at the company’s earnings release later today.

What are markets expecting for Netflix’s Q1 financial results?

Three words: record setting quarter.

Wall Street expects Netflix to post its highest-ever revenue and net profit for a single financial quarter. The top line is expected to breach the $7 billion mark for the first time in the company’s history, thanks to price hikes in the US, Germany, UK and Ireland. Meanwhile, the company’s adjusted net profit is slated to come in at $1.45 billion, and that should translate into an adjusted earnings per share of $3.18.

However, look beyond the historic numbers and the broader industry harbors troubling signs for Netflix.

Streaming wars eroding Netflix’s advantage

According to a report by Parrot Analytics, just over half (50.2%) of the original series that viewers worldwide wanted to watch online over the past three months were by Netflix. While that figure still dwarves second-placed Amazon Prime’s share of 12.2% for the same period (January-March 2021), Netflix’s market share has clearly dropped from the near-65% share it enjoyed some two years ago.

Within the US alone, the decline in Netflix’s market share is even more obvious. According to Bloomberg Intelligence data, Netflix’s share of the US streaming pie has gone from near-total dominance of 96.04% in Q1 2018 to just 44.43% as of Q4 2020.

As the competition for eyeballs intensifies, Netflix is set to find it harder to gain more subscribers.

Netflix not taking things lying down

That doesn’t spell the end of Netflix. This year alone, the world’s largest streaming platform aims to release over 70 movies. The streaming giant earlier this month also announced a deal with Sony, which is reportedly worth over $1 billion. The agreement gives Netflix the rights to exclusively show Sony movies released from 2022 onwards after they’ve completed their theatrical runs.

That should keep their 210 million subscribers (estimated as of end-March) and counting, entertained with popular franchises such as “Jumanji” and “Spider Man” over the coming years, even with the potential prices hikes looming.

Armed with customer loyalty while flexing its pricing power, Netflix still has a lot within its arsenal to withstand the heightened competition for viewers’ attention.

How might Netflix’s share price react after Tuesday’s earnings?

Markets are pricing in a 7.2% move for Netflix’s share price when markets reopen on Wednesday. Although NFLX could go either way, it’s notable that shareholders typically sought to use these announcements as selling opportunities. The stock declined the day after 8 of the past 11 earnings.

Still, a 7.2% move to the upside would set a new record high for Netflix’s share price, while a similar-sized move to the downside could see the stock looking for support around its 200-SMA once more.

How exactly will this NFLX stock react this week? We’ll just have to stay tuned and watch the drama unfold.

Written on 20/04/2021 02:00 GMT by Han Tan, Market Analyst at FXTM

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

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Earnings to Watch Next Week: Coca-Cola, United Airlines, NetFlix and SVB Financial in Focus

Earnings Calendar For The Week Of April 19

Monday (April 19)

IN THE SPOTLIGHT: COCA-COLA, UNITED AIRLINES

COCA-COLA: The world’s largest soft drink manufacturer is expected to report its first-quarter earnings of $0.50 per share, which represents a year-over-year decline of about 2% from $0.51 per share seen in the same quarter a year ago.

The company’s revenue growth to be flat at $8.6 billion. However, in the last two years, on average, Coca-Cola has beaten revenue estimates over 70% and earnings estimates of nearly 90%.

Coca-Cola, which has still not seen a full recovery to its pre-COVID-19 level, may be a decent investment opportunity at the moment. The stock traded around $60 pre-COVID in February 2020 and is 11% below that level. However, the stock has gained 40% since its March lows of $37, following the Fed’s stimulus package and measures announced by other economies. The gradual lifting of lockdowns and successful vaccine rollout has further enthused markets in anticipation of faster economic recovery,” noted analysts at TREFIS.

“However, the stock is unlikely to surpass its pre-Covid level anytime soon, as most of its business depends on demand from people going to entertainment venues, sporting events, etc. These locations are not yet fully operational in most parts of the world. With the recent spike in Covid cases, there are some forms of lockdowns imposed again in certain economies, thus slowing the recovery in demand. Therefore, in the absence of another complete lockdown (as was seen in 2020) and implementation of the vaccination program the stock is likely to rise, but full recovery to February 2020 levels looks unlikely in the near term. KO stock has a potential upside of about 10%.”

UNITED AIRLINES: One of the largest airlines in the world is expected to report a loss for the fifth consecutive time of $6.91 in the first quarter of 2021 on April 19 as the aviation service provider continues to be negatively impacted by the ongoing COVID-19 pandemic and renewed travel restrictions.

That would represent a year-over-year decline of over 168% from -$2.57 per share seen in the same quarter a year ago. The Chicago-based airline’s revenue would decline about 60% to around $3.3 billion.

“Most of the US airlines will report 1Q21 earnings the week of April 19 and 26. We expect the focus to be on higher fuel costs, the nascent traffic recovery, and improving the balance sheet. Our focus remains on domestic leisure airlines while watching borders reopening to determine recovery for international traffic. We also expect airlines to talk about repairing their balance sheet,” said Helane Becker, equity analyst at Cowen and Company.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 19

Ticker Company EPS Forecast
KO Coca-Cola $0.50
PLD ProLogis $0.37
MTB M&T Bank $3.00
ONB Old National Bancorp $0.41
UAL United Airlines Holdings -$6.98
CCK Crown $1.37
STLD Steel Dynamics $1.84
ZION Zions Bancorporation $1.18
PNFP Pinnacle Financial Partners $1.43
ACC American Campus Communities $0.15
HXL Hexcel -$0.16
WTFC Wintrust Financial $1.40
FNB FNB $0.25
SFBS ServisFirst Bancshares $0.95
HDS HD Supply Holdings $0.39
IBM IBM $1.68
EIDX Eidos Therapeutics Inc -$0.80
LII Lennox International $1.25
CDNS Cadence Design Systems $0.74

 

Tuesday (April 20)

IN THE SPOTLIGHT: NETFLIX

The California-based global internet entertainment service company is expected to report its first-quarter earnings of $2.97 per share, which represents year-over-year growth of over 90% from $1.57 per share seen in the same quarter a year ago. The streaming video pioneer would post revenue growth of over 23% to around $7.15 billion.

“We expect paid net adds to be in line with guide, helped in part by ongoing COVID shutdowns in some markets. Our view is supported by our positive 1Q survey data, which implies NFLX continues to lead living room TV apps. We also view the 45% of survey respondents who share passwords as a LT opp’ty for incremental subs. Reiterate Outperform & $675 Price Target,” noted John Blackledge, equity analyst at Cowen and Company.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 20

Ticker Company EPS Forecast
ABF Associated British Foods £17.31
XRX Xerox $0.29
AN AutoNation $1.85
DOV Dover $1.45
JNJ Johnson & Johnson $2.33
PG Procter & Gamble $1.19
ABT Abbott $1.27
PM Philip Morris International $1.40
LMT Lockheed Martin $6.31
DANOY Danone PK $0.46
TRV Travelers Companies $2.38
FITB Fifth Third Bancorp $0.69
EDU New Oriental Education Tech $0.06
NTRS Northern $1.49
KEY KEY $0.47
OMC Omnicom $1.13
CMA Comerica $1.38
SNV Synovus Financial $0.93
HOG Harley Davidson $0.90
IRDM Iridium Communications -$0.05
MAN ManpowerGroup $0.67
WBS Webster Financial $0.90
GATX GATX Corp $0.89
SFNC Simmons First National $0.52
BMI Badger Meter $0.42
NFLX Netflix $2.97
ISRG Intuitive Surgical $2.64
CSX CSX $0.96
EW Edwards Lifesciences $0.47
WRB W.R. Berkley $0.83
IBKR Interactive Brokers $0.87
THC Tenet Healthcare $0.73
HWC Hancock Whitney Corp $0.97
UCBI United Community Banks $0.64
FULT Fulton Financial $0.35
FMBI First Midwest Bancorp $0.37
EMR Emerson Electric $0.89
PCAR PACCAR $1.29
TER Teradyne $1.04
ENTG Entegris $0.72
CIT CIT $0.98
AVNT Avient Corp $0.71
ELS Equity Lifestyle Properties $0.35
PACW Pacwest Bancorp $0.91
BECN Beacon Roofing Supply $0.08

 

Wednesday (April 21)

IN THE SPOTLIGHT: SIGNATURE BANK

The New York-based full-service commercial bank is expected to report its first-quarter earnings of $2.85 per share, which represents year-over-year growth of over 50% from $1.88 per share seen in the same quarter a year ago. The bank would post revenue growth of about 18% to around $428 million.

SBNY has a unique business model, with its single-point-of-contact bankers, excellent credit culture, and a highly efficient operating structure. Its loan growth continues to outpace peers, given its relatively new focus on growing its PE/VC capital call lending business, while strategically de-emphasizing its NYC MF portfolio,” Ken Zerbe, equity analyst at Morgan Stanley.

“While we do expect losses in SBNY’s CRE portfolio, we believe the market is overly discounting this in the stock price, particularly given its strong underwriting history and conservative lending.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 21

Ticker Company EPS Forecast
HCSG Healthcare Services $0.27
ERIC Ericsson $0.11
TEL TE Connectivity $1.48
NDAQ Nasdaq Omx $1.72
RCI Rogers Communications USA $0.53
BKR Baker Hughes Co $0.11
HAL Halliburton $0.17
RANJY Randstad Holdings $0.46
SBNY Signature Bank $2.85
FHN First Horizon National $0.35
KNX Knight Transportation $0.70
BOKF BOK Financial $1.92
NEP Nextera Energy Partners $0.33
FCFS FirstCash $0.70
ASML ASML $3.06
NEE NextEra Energy $0.58
ANTM Anthem $6.38
LAD Lithia Motors $4.74
CP Canadian Pacific Railway USA $4.35
CACI Caci International $3.68
CMG Chipotle Mexican Grill $4.89
KMI Kinder Morgan $0.24
DFS Discover Financial Services $2.81
WHR Whirlpool $5.04
GGG Graco $0.50
GL Globe Life Inc $1.63
SLM SLM $1.05
REXR Rexford Industrial Realty $0.06
LSTR Landstar System $1.63
FR First Industrial Realty $0.24
RLI RLI $0.66
VMI Valmont Industries $1.92
SLG SL Green Realty -$0.14
UFPI Universal Forest Products $0.87
UMPQ Umpqua $0.44
TCBI Texas Capital Bancshares $1.09
BXS BancorpSouth $0.63
SNBR Scs Group Plc $1.85
CNS Cohen & Steers $0.76
RUSHA Rush Enterprises $0.52
PLXS Plexus $1.25
TBK Triumph Bancorp $0.91
BDN Brandywine Realty $0.02
EFX Equifax $1.53
LRCX Lam Research $6.60
CCI Crown Castle International $0.53
STL Sterling Bancorp $0.46
CHDN Churchill Downs $0.64
NWE Northwestern $1.12
RHI Robert Half International $0.80
SEIC SEI Investments $0.88
CVBF CVB Financial $0.37
LVS Las Vegas Sands -$0.27
PKX Posco $2.22
URI United Rentals $3.08
BZLFY Bunzl plc $0.15
ELISA Elisa Oyj €0.51

 

Thursday (April 22)

IN THE SPOTLIGHT: SVB FINANCIAL

The parent of Silicon Valley Bank is expected to report its first-quarter earnings of $6.47 per share, which represents year-over-year growth of about 153% from $2.55 per share seen in the same quarter a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 45%. The Santa Clara, California-based company would post revenue growth of over 50% to about $1.24 billion.

SIVB is one of the fastest-growing banks in our coverage universe, with an average of 20%+ loan and deposit growth annually since 2010, with the growth driven by its unique niche of lending to the technology and life sciences industries, including PE and VC capital call lines. While we expect growth to slow, we still see low-teens loan growth (well above peers) for the next several years,” noted Ken Zerbe, equity analyst at Morgan Stanley.

“We are Equal-weight the shares due to valuation. SIVB is trading at just over 20x forward earnings and more than 10 P/E points above its peers (versus a 4-6x multiple premium that we believe it deserves). SIVB‘s earnings are highly sensitive to changes in Fed funds. Rate increases would drive higher EPS.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE APRIL 22

Ticker Company EPS Forecast
WSO Watsco $0.88
LUV Southwest Airlines -$1.88
VLO Valero Energy -$1.56
AAL American Airlines -$4.18
HCA HCA $3.31
SAP SAP $1.21
GPC Genuine Parts $1.14
FRME First Merchants $0.78
NUE Nucor $3.07
FCX Freeport-McMoran $0.51
PNR Pentair Ordinary Share $0.61
ALK Alaska Air -$3.68
SASR Sandy Spring Bancorp $1.02
ORI Old Republic International $0.46
DOW Dow Chemical $1.10
DHR Danaher $1.74
WNS Wns Holdings $0.69
FAF First American Financial $1.31
RS Reliance Steel & Aluminum $3.55
T AT&T $0.78
UNP Union Pacific $2.08
TPH Tri Pointe Homes $0.47
TAL TAL International -$0.23
HBAN Huntington Bancshares $0.32
AEP American Electric Power $1.18
BIIB Biogen $5.02
DHI DR Horton $2.18
EWBC East West Bancorp $1.25
BX Blackstone $0.75
DGX Quest Diagnostics $3.74
POOL Pool $1.14
ALLE Allegion $1.02
CLF Cliffs Natural Resources $0.35
TSCO Tractor Supply $0.97
TRN Trinity Industries $0.06
MKTX MarketAxess $2.12
BKU BankUnited $0.74
SNA Snap-On $3.03
IQV IQVIA Holdings Inc $1.85
SON Sonoco Products $0.86
ODFL Old Dominion Freight Line $1.58
SKX Skechers USA $0.49
INDB Independent Bank $1.09
HTH Hilltop $1.01
CE Celanese $2.98
OZK Bank Ozk $0.86
FFBC First Financial Bancorp $0.47
CSL Carlisle Companies $0.68
SAM Boston Beer $2.60
STX Seagate Technology $1.33
VICR Vicor $0.19
WWE World Wrestling Entertainment $0.20
ABCB Ameris Bancorp $1.13
ARI Apollo Commercial Real Est Finance $0.33
GBCI Glacier Bancorp $0.75
SBCF Seacoast Banking Of Florida $0.48
VRSN Verisign $1.34
MAT Mattel -$0.34
WSFS Wsfs Financial $0.86
SNAP Snap -$0.21
SIVB SVB Financial $6.47
ASB Associated Banc $0.43
FE FirstEnergy $0.69
ADS Alliance Data Systems $3.21
CTXS Citrix Systems $1.42
PBCT People’s United Financial $0.34
CAJ Canon $0.27
WST West Pharmaceutical Services $1.42
NVR NVR $61.90
FFIN First Financial Bankshares $0.37
VVV Valvoline Inc $0.37
SAFE 3 Sixty Risk $0.33
ASR Grupo Aeroportuario Del Sureste $23.55
ORAN Orange $0.24
INTC Intel $1.14
KPELY Keppel Corporation $0.14
SAVE Spirit Airlines -$2.55
CS Credit Suisse -$0.40

 

Friday (April 23)

Ticker Company EPS Forecast
SXT Sensient Technologies $0.75
ALV Autoliv $1.43
SLB Schlumberger $0.18
AXP American Express $1.60
KMB Kimberly Clark $1.93
HON Honeywell International $1.80
RF Regions Financial $0.47
GNTX Gentex $0.49
E ENI $0.42

 

Has Netflix Topped Out?

Netflix Inc. (NFLX) is trading higher by about 1% in Tuesday’s pre-market session after boutique firm Argus upgraded the stock from ‘Hold’ to ‘Buy’.  Even so, the streaming giant has struggled since failing a January breakout near 600, dropping into the 200-day moving average for the first time since the March 2020 decline.  Worse yet, It’s now back to the same level first traded in July 2020, not adding a single point in the last eight months.

Higher Risk Ahead

Some analysts have raised concerns that 2021 will signal high subscriber turnover, a.k.a. ‘churn’, across the streaming video on demand (SVOD) universe as millions of consumers get out of their homes to engage in more activities in the physical world. Churn rose ‘materially’ in Q4 2020 according to Needham analyst Laura Martin and Netflix has a lot to lose if that continues, with no cheaper ad-driven tier to bolster revenue.

But not everyone is bearish on the long-term outlook. Argus analyst Joseph Bonner upgraded Netflix to ‘Buy’ from ‘Hold’ on Tuesday with a $650 price target, noting the company continues to expand globally and add new subscribers, strengthening its SVOD leadership with popular and original content. He thinks the stock “offers a sustainable structural competitive advantage in the streaming video space and the recent selloff represents an appropriate entry point”.

Wall Street and Technical Outlook

Wall Street consensus now stands at an ‘Overweight’ rating’, based upon 23 ‘Buy’, 5 ‘Overweight’, 9 ‘Hold’, and 1 ‘Underweight’ recommendation. Four analysts recommend that shareholders close positions and move to the sidelines. Price targets currently range from a low of $340 to a Street-high $840 while the stock is set to open Tuesday’s session more than $80 below the median $650 target.  This low placement indicates a sharp disconnect with less bullish investor opinion.

The stock broke out above 2018 resistance above 420 in April 2020 and carved an impressive uptrend into the July peak at 575.37. It failed September, October, and January breakout attempts, carving a persistent trading range with support near 490.  Higher lows in November, January, and March highlight modest buying interest but the 200-day moving average at 494 needs to hold in this mixed configuration, with a breakdown favoring a decline into April breakout support near 425.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication.

U.S. Market Wrap and Forecast for Wednesday

Major indices oscillated near the flatline in a lazy Tuesday session, with small caps attracting the most buying interest. Gold, bonds, equities, and VIX traded in lockstep while the WTI Crude Oil contract continued its bullish assault, lifting to the highest high since January 2020. Long-time laggard SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rallied to a 52-week high, outperforming the broad-based SPDR Select Sector Energy ETF (XLE).

Netflix Testing Resistance

Netflix Inc. (NFLX) gained 2%, continuing a recovery wave after filling the post-earnings gap on Jan. 27. The stock posted an all-time high after the release and promptly sold off, failing the breakout when it traded through 575. The stock closed about 16 points below that level, setting up an interesting test in coming days. Alphabet Inc. (GOOG) is the only member of the FAANG quintet currently in breakout mode after Apple Inc. (AAPL) reversed on Jan 26.

Former Reddit favorites took another big hit, dropping Gamestop Inc. (GME) below 50 for the first time in nearly three weeks. A true believer messaged me on Monday morning, convinced the stock must rally between 500 and 800 soon because that’s where the biggest open interest was located. Numerous attempts to instruct these folks on the history of broken bubbles is invariably met with derision.

Looking Ahead to Wednesday

Keep an eye on Zoom Video Communications Inc. (ZM) in coming sessions. The stock rose 4% to a two-month high on Tuesday after Dow component Salesforce.com Inc. (CRM) said its employees would continue to work remotely part-time or full-time after the pandemic runs its course. Twitter Inc. (TWTR) earnings this evening could also impact Wednesday’s market, with the stock sitting near resistance ahead of the release.  Even so, the company is not big enough yet to leave a deep footprint on the ticker tape.

The second impeachment trial is sapping market interest, killing momentum from stimulus legislation that is needed to keep bulls on the offensive. Americans on both sides of the aisle are exhausted after the election conflict and reliving the sad tale isn’t the best way to encourage higher equity prices. Meanwhile, the slow drift higher continues unabated while bears wait patiently for a more reliable selling opportunity.

For a look at all of this week’s economic events, check out our economic calendar.

 

Netflix Rockets After New Subscribers Fuel Blockbuster Q4 Sales

Netflix, Inc. (NFLX) shares surged over 12% in extended-hours trade Tuesday after the streaming content provider reported better than expected fourth-quarter sales on the back of robust subscriber growth. The company also said it is considering returning free cash flow to shareholders through buybacks.

Revenues for the fourth quarter (Q4) came in at $6.64 billion, slightly above the $6.63 billion consensus mark analysts had forecast. Moreover, the top line grew 20% from a year earlier, thanks to a boost of 8.5 million paid subscribers during the period. The company disclosed quarterly earnings per share (EPS) of $1.19, with the figure falling shy of Wall Street estimates of $1.30 a share and contracting 8% on a year-over-year (YoY) basis.

As of Jan. 20, 2021, Netflix stock has a market value of $221.68 billion and trades 7.21% lower on the year. However, the shares have gained nearly 50% over the past 12 months as investors piled into names that benefited from consumers spending more time at home during the pandemic.

Returning Free Cash Flow to Investors

CFO Spencer Neumann raised the prospect of returning excess free cash flow to investors while remaining on the lookout for strategic investments. “We put a premium on balance sheet flexibility, so we’re going to continue to invest aggressively into the growth opportunities that we see, and that’s always going to come first,” he said, per CNBC. “But beyond that, if we have excess cash, we’ll return it to shareholders through a share buyback program,” Neumann added. He also told investors that the company would no longer need to raise external financing for its daily operations.

Wall Street View

Citi’s Jason Bazinet maintained his ‘Neutral’ rating on Netflix shares earlier this month but raised his price target to $580 from $450. The analyst cautioned price hikes might limit new subscribers in coming quarters, resulting in a loss of market share to Disney’s streaming service, Disney+.

Elsewhere, the Street sentiment remains mostly bullish. The shares receive 21 ‘Buy’ ratings, 4 ‘Overweight’ ratings, and 12 ‘Hold’ ratings. Just one sell-side firm currently recommends selling the shares. Price targets range from as high as $700 to as low as $235, with the median pegged at $580.60. Watch for a flurry of additional upgrades over the next few weeks after yesterday’s upbeat quarterly update.

Technical Outlook and Trading Tactics

Since climbing to a new all-time high in mid-July, Netflix shares have remained stuck in a 110-point trading range. Premarket data indicates the stock will open around $565 today, placing the price toward the range’s upper trendline.

Those looking to play a breakout should plan entries above key resistance at $575 while managing risk with a stop-loss order placed around $20 below the execution price. Consider using a measured move to set a profit target. For example, add the trading range distance, as measured in points, to the breakout level. ($105 + $575 = $680 profit target)

For a look at today’s earnings schedule, check out our earnings calendar.

How Might Netflix’s Q4 Earnings Affect its Share Price?

While we await the confirmation of such numbers from Netflix, which is set to announce its Q4 results after US markets close on Tuesday, a lot of tailwinds for this pandemic darling has already been baked into its share prices.

NFLX Daily

How have Netflix’s share prices performed so far in 2021?

In fact, its stock prices have dropped by nearly 8 percent so far this year, and is still keeping to the same range since July. With its 50-day and 100-day simple moving averages (SMA) now flat, Netflix’s shares are clearly in need of a new major catalyst to break out of its sideways trend.

Though to be fair to the bulls, Netflix’s shares had a remarkable year in 2020, registering an annual advance of 67.1 percent.

Are the best days over for Netflix’s growth?

The forward-looking nature of the markets mean that Netflix shareholders have already trained their sights on this year’s prospects and beyond. Some market estimates see Netflix boasting 300 million subscribers by 2024, but will have to first overcome near-term challenges.

Netflix is likely to post subdued year-on-year comparisons in 2021, given that the pandemic had front-loaded much of the company’s growth in the first half of 2020. It’s difficult to imagine Netflix repeating or beating such a feat during this current quarter and next.

For example, the streaming giant added 15.8 million subscribers in Q1 2020. According to the Bloomberg consensus estimates, Netflix is expected to add “only” 7.3 million more subscribers in the current quarter, which would be less than half of the total added in the first three months of 2020.

More price hikes to come?

Besides being tested on its ability to lure even more subscribers, Netflix will also be tested on its ability to retain existing customers. The streaming giant began a new price hike cycle in September, with the US seeing an 8-13% price hike in Q4, while prices in the UK and Ireland were raised in December. Subscribers in Germany had to start paying more last week. More price hikes are expected in other markets soon.

As long as Netflix can limit the subscriber churn amid these price hikes, that should bode well for its top line, with revenue set to come in at $6.6 billion in Q4 2020, which would mark an increase of over 20 percent compared to the same period in 2019.

Still, such prices hikes should raise the ARPU (average revenue per user) – which means Netflix is becoming more efficient in generating more income per subscriber – even as the top line revenue sees slowing year-on-year growth for a 5th consecutive quarter.

What are Netflix’s plans for this year?

Amid the price hikes, Netflix has ambitious plans to keep its ever-demanding customers satiated.

The streaming giant is set to release 70 original films in 2021 (that’s more than one new title for every week), and that doesn’t include documentaries.

It remains to be seen how much this lineup of new titles can add to Netflix’s subscribers tally, given the tempting offerings by the likes of Disney+, HBO Max, Peacock and the like, all of whom are vying for a larger share of the streaming pie.

How do Netflix shares tend to react after earnings day?

Markets are already pricing in a 6.8 percent one-day move when Netflix shares resume trading after its earnings release. Also note that shareholders have seized the opportunity to book profits after the last four consecutive earnings announcements, while single-day declines have been registered in 8 out of the past 12 earnings announcements.

Netflix bulls are going to need an outsized positive surprise on Tuesday or a very bullish outlook from the company’s top brass that markets can buy into. Such rhetoric may put Netflix shares on a path towards breaking past the upper limits of its 7-month long-range and potentially set a new record high.

Written on 19/01/2021 08:30 GMT by Han Tan, Market Analyst at FXTM

For more information, please visit: FXTM


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Netflix Under Pressure Ahead of Tuesday Report

Netflix Inc. (NFLX) reports Q4 2020 earnings after Tuesday’s closing bell, with analysts looking for a profit of $1.41 per-share on $6.62 billion in revenue. If met, earnings-per-share (EPS) will mark a modest 8.4% profit increase, compared to the same quarter in 2020. Of course, all hell broke loose after that report, with a worldwide pandemic boosting subscriptions, especially in more resistant older demographics.

Netflix Growth Concerns

The stock posted an impressive 67% return in 2020 but hasn’t added a penny in the last six months and has lost 8% so far in 2021.  Rivals Walt Disney Co. (DIS) and Roku Inc. (ROKU) have ascended the leader board between then and now, with their rapidly-growing services attracting waves of Wall Street upgrades. On the flip side, growth concerns have plagued Netflix since July, with some analysts expecting 2021 to reveal all sorts of structural weaknesses.

That sentiment is far from universal, as evidenced by BMO Capital Market’s call to sell Disney. Analyst Daniel Salmon downgraded the stock to ‘Outperform’ in December, stating that Netflix “retakes the Top Pick mantle”. However, Needham’s Laura Martin is telling clients to sell NFLX and buy ROKU in a pairs trade that highlights a popular opposing view. She also expects DIS to have more subscribers within 18 to 24 months, given the service’s incredible ingrowth trajectory.

Wall Street and Technical Outlook

Wall Street consensus remains at a ‘Moderate Buy’ ahead of Tuesday’s confessional, based upon 19 ‘Buy’ and 7 ‘Hold’ recommendations. However, three analysts now recommend that subscribers close positions and move to the sidelines. Price targets currently range from a low of $235 to a Street-high $700 while the stock ended last week about $85 below the median $583 target. This humble placement raises the potential for a ‘buy-the-news’ reaction.

Netflix entered a broad rectangle pattern after posting the all-time high last summer and has now reversed at range resistance three times. However, it’s also held four tests at range support near 465, establishing a standoff that will end with one side getting trapped by an adverse trend. Monthly and weekly relative strength indicators are now entrenched in sell cycles, raising odds that committed sellers eventually take control of the tape.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication.

Earnings to Watch Next Week: Logitech, Goldman Sachs, NetFlix and IBM in Focus

Next week’s earnings are of much significance for major market movements as 2021 is believed to be a year of recovery on hopes of successful roll-out of the COVID-19 vaccine.

Earnings Calendar For The Week Of January 18

Monday (January 18)

IN THE SPOTLIGHT: LOGITECH INTERNATIONAL

Logitech International S.A., a Swiss-American manufacturer of computer peripherals and software, is expected to report a profit of $1.08 in the fiscal third quarter, which represents year-over-year growth of about 29% from the same quarter last year when the company reported 84 cents per share.

The Lausanne-based company’s revenue to grow over 35% year-over-year to $1.23 billion from $902.69 million in the same period last year.

“We are bullish into Logitech‘s F3Q21 earnings report next week as our December quarter checks point to a better than the expected market environment, most notably for PC peripherals. We’d be buyers into the print and raise our PT to $113 (from $106) to account for recent peer multiple expansion,” noted Erik Woodring, equity analyst at Morgan Stanley.

Tuesday (January 19)

IN THE SPOTLIGHT: GOLDMAN SACHS, NETFLIX

GOLDMAN SACHS: New York-based leading global investment bank is expected to report a profit of $7.33 in the fourth quarter, which represents year-over-year growth of about 56% from the same quarter last year when the company reported $4.69 per share. The bank’s revenue is expected to dip 4.9% from the year-ago quarter to $9.47 billion.

“As market volatility and the urgency around capital raising activity (both equity and debt) subside in 2021, we expect total revenues decline 11% y/y from a strong 2020. We are valuing the group on normalized 2023 EPS. While we still see 15%+ upside to Goldman Sachs (GS) based on this methodology, we see even more upside elsewhere in the group, particularly in consumer finance stocks which have been under more pressure,” said Betsy Graseck, equity analyst at Morgan Stanley.

“This drives our Underweight rating. Over time, we expect GS can drive some multiple expansion as management executes on its multi-year strategic shift towards higher recurring revenues.”

NETFLIX: California-based global internet entertainment service company is expected to report a profit of $1.35 in the fourth quarter, which represents year-over-year growth of about 4% from the same quarter last year when the company reported $1.30 per share. The streaming video pioneer’s revenue is expected to surge over 20% from the year-ago quarter to $6.60 billion.

“We expect paid net adds to come in the above guide, helped by ongoing shutdowns & seasonal strength. Our view is supported by our positive proprietary 4Q20 survey data, which implies rising pricing power into year-end. We tweaked estimate’s & introduced ’21 quarters; in turn, our DCF-based price target rises to $650 from $625 prior; reiterate ‘Outperform’ rating,” said John Blackledge, equity analyst at Cowen and company.

NetFlix (NFLX) shares were +67% in ’20 alongside a pandemic surge, following massive sub beats in 1Q / 2Q respectively and 28.1MM total paid net adds in 1Q-3Q ’20, up 47% y/y. With consumers staying home amid colder weather & limited social activities, we expect Netflix engagement to remain high; meanwhile, to the extent, there is any NT pressure on UCAN paid subs from the 4Q US price increase, we would consider this a buying opportunity for NFLX shares as the co. grows the value prop alongside rising ARPU.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JANUARY 19

Ticker Company EPS Forecast
PACW Pacwest Bancorp $0.67
CMA Comerica $1.18
ONB Old National Bancorp $0.38
SCHW Charles Schwab $0.65
GS Goldman Sachs $7.33
STT State Street $1.57
HAL Halliburton $0.15
FULT Fulton Financial $0.27
JBHT J B Hunt Transport Services $1.30
ZION Zions Bancorporation $1.01
PNFP Pinnacle Financial Partners $1.36
FNB FNB $0.24
UCBI United Community Banks $0.60
NFLX Netflix $1.35
IBKR Interactive Brokers $0.58
RNST Renasant $0.59
SBNY Signature Bank $2.91

Wednesday (January 20)

IN THE SPOTLIGHT: UNITEDHEALTH

UNITEDHEALTH: Minnesota-based health insurance and health care data analysis giant is expected to report a profit of $2.41 in the fourth quarter, which represents a year-over-year decline of about 40% from the same quarter last year when the company reported $3.90 per share.

The largest insurance company by Net Premiums is witnessing a slowdown in its international business as increased joblessness due to the COVID-19 pandemic has dented demand for commercial membership.

UnitedHealth Group is the number one Medicare Advantage player with 28% market share, the number two Medicare PDP player with 20% market share, and the number two commercial player with 15% market share. United’s model is enhanced via vertical integration with its OptumRx PBM platform, which is one of the three largest PBMs in the country,” wrote Ricky Goldwasser, equity analyst at Morgan Stanley.

“With a large lead in the breadth of services offerings and considerable exposure to government businesses, UnitedHealth is well-positioned for any potential changes in the US healthcare system. A strong balance sheet and continued solid cash generation give flexibility for continued M&A.”

United Airlines is expected to report a deep loss in the fourth quarter due to the COIVD-19 pandemic, which harmed demand for travel.

Ohio-based Tide detergent and Pampers diaper manufacturer Procter & Gamble is expected to report an increase in profits on rising demand for home care and laundry products amid the COIVD-19 pandemic.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JANUARY 20

Ticker Company EPS Forecast
UNH UnitedHealth $2.41
PG Procter & Gamble $1.51
ASML Asml $2.96
MS Morgan Stanley $1.30
USB US Bancorp $0.95
BK Bank Of New York Mellon $0.88
FAST Fastenal $0.33
CFG Citizens Financial $0.91
CBSH Commerce Bancshares $0.92
BOKF BOK Financial $1.92
FCEL Fuelcell Energy -$0.07
KMI Kinder Morgan $0.24
DFS Discover Financial Services $2.36
UAL United Airlines Holdings -$6.56
AA Alcoa $0.09
WTFC Wintrust Financial $1.41
UMPQ Umpqua $0.48
HWC Hancock Whitney Corp $0.90
PLXS Plexus $1.10
STL Sterling Bancorp $0.46
PTC PTC $0.65

Thursday (January 21)

IN THE SPOTLIGHT: IBM

IBM: Armonk, New York-based technology and consulting company is expected to report a profit of $1.81 in the fourth quarter, which represents a year-over-year decline of over 60% from the same quarter last year when the company reported $4.71 per share.

“For 2020, IBM refrained from providing any guidance, citing business uncertainty. Nevertheless, management stated that the fourth quarter is a seasonally strong quarter. The company is witnessing robust pipelines across hybrid cloud and data platform, AI solutions, in Cognitive Apps business driven by strength in Cloud Paks and Security, cloud-based transformation services in GBS segment, and App modernization offerings,” noted analysts at ZACKS Research.

“Also, management is banking on advancement in Red Hat “actual backlog growth.” Moreover, gains from the rapid uptake of IBM z15 is anticipated to be a tailwind. The company also anticipates to end 2020 with reduced debt levels.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JANUARY 21

Ticker Company EPS Forecast
UNP Union Pacific $2.24
TFC Truist Financial Corp $0.85
TAL TAL International $0.04
TRV Travelers Companies $3.16
BKR Baker Hughes Co $0.17
FITB Fifth Third Bancorp $0.68
NTRS Northern $1.49
MTB M&T Bank $3.02
KEY KEY $0.43
CTXS Citrix Systems $1.34
HOMB Home Bancshares $0.39
INDB Independent Bank $1.02
FBC Flagstar Bancorp $2.36
WBS Webster Financial $0.75
BKU BankUnited $0.71
WNS Wns Holdings $0.59
INTC Intel $1.10
IBM IBM $1.81
ISRG Intuitive Surgical $3.09
CSX CSX $1.01
PPG PPG Industries $1.58
SIVB SVB Financial $3.79
TCBI Texas Capital Bancshares $1.13
ASB Associated Banc $0.30
PBCT People’s United Financial $0.32
OZK Bank Ozk $0.78
WAL Western Alliance Bancorporation $1.33
BKRKY Bank Rakyat $0.17
MTCH Match Group $0.50
MTG MGIC Investment $0.37
STX Seagate Technology $1.13

Friday (January 22)

Ticker Company EPS Forecast
EDU New Oriental Education Tech $0.26
ABBV AbbVie $2.86
HON Honeywell International $2.00
SLB Schlumberger $0.17
KSU Kansas City Southern $1.93
RF Regions Financial $0.42
HBAN Huntington Bancshares $0.29
ALLY Ally Financial $1.05
FHN First Horizon National $0.28
HRC Hill-Rom $1.05
NEP Nextera Energy Partners $0.39
IBN Icici $0.14
TOP Topdanmark A/S kr3.63