Earnings playbook: Your guide to this week’s biggest reports, including Netflix
It’s a short week on Wall Street, but there are major earnings reports on deck that could move the stock market. Netflix, Johnson & Johnson and United Airlines are among the 35 S & P 500 companies slated to post their latest quarterly figures. Those come after a week in which big banks reported blockbuster numbers. JPMorgan Chase had a record fourth quarter, while Goldman Sachs and Morgan Stanley cleared analyst expectations through strong trading revenue. Overall, just over 40 S & P 500 companies have reported thus far. Of those, 76% have beaten analyst expectations, according to FactSet. Take a look at CNBC Pro’s breakdown of what’s expected from this week’s key reports. All times are ET. Tuesday D.R. Horton is set to report earnings before the bell , followed by a conference call at 8:30 a.m. Last quarter: DHI reported fiscal fourth-quarter numbers that missed analyst expectations. This quarter: The homebuilder’s earnings are expected to have fallen more than 15% from the year-earlier period, according to LSEG. What to watch: The outlook heading into D.R. Horton’s earnings release appears dim, according to Wells Fargo. The bank earlier this month lowered its fiscal first-quarter estimates and said it expects “FQ2 guide to contemplate below Street numbers on deliveries (closer to 20K) & [gross margin]% (likely down q/q, sub-22.5%).” The stock is also coming off a losing year, falling 8% in 2024. What history shows: D.R. Horton beats earnings expectations 75% of the time, with the stock averaging a 1.5% advance on earnings days, according to Bespoke Investment Group. Netflix is set to report earnings after the bell. A call with management is set to take place at 4:45 p.m. Last quarter: NFLX reported a 35% jump in ad-tier subscribers . This quarter: The streaming giant’s bottom line is expected to have doubled year over year, based on an LSEG consensus estimate. What to watch: Key to Netflix investors will be any guidance the company provides on how it can continue releasing highly regarded content and bolstering its live events slate. “Netflix’s increasing share of highly-rated content (Squid Game season 2 opened to 68MM views in 92 countries), award-winning original films and series (NFLX had the most Golden Globe nominations of any media company, #1 in film 13 nods and #1 in TV with 23), buzz-worthy special events, and streaming/connected TV advertising revenue have all justified the premium valuations of NFLX shares,” Seaport Research Partners said in an upgrade earlier this month . What history shows: Netflix has seen big stock swings after two of the last three earnings days, including an 11.1% rally in October. United Airlines is set to report earnings after the close. Management will hold a call the following day. Last quarter: UAL issued a strong forecast for the fourth quarter, leading to shares reaching pre-pandemic highs . This quarter: The airline is expected to report year-over-year earnings growth of nearly 50%, according to LSEG. What CNBC airline reporter Leslie Josephs is watching: “Hopes are high that United Airlines, whose stock is the best-performing airline stock of the past year, can continue growing earnings and revenue. Its main rival, Delta Air Lines, was upbeat when it kicked off the sector’s earning season, with CEO Ed Bastian predicting 2025 will be the carrier’s best financial year ever. Investors will look to United for signals on demand and pricing power as the pent-up demand in the years after Covid fully realized. United has been launching adventurous new routes including to Greenland, Mongolia and northern Spain in hopes of catering to customers who already hit major destinations. As usual, United executives will also give a reading on Boeing’s chances of increasing production this year.” What history shows: United has beaten earnings expectations for nine straight quarters, per Bespoke. Wednesday Johnson & Johnson is set to report earnings in the premarket. A conference call between analysts and management is also scheduled for 8 a.m . Last quarter: JNJ earnings and revenue for the third quarter beat analyst expectations. This quarter: Analysts polled by LSEG forecast a year-on-year earnings drop of more than 10%. What to watch: Goldman Sachs analyst Chris Shibutani thinks expectations for the pharma giant are “reasonable” following his “review of events through the quarter – including procedure volume trends across end-markets for the company’s MedTech business, and prescription volume trends for key pharmaceutical products for the Innovative Medicine business.” What history shows: Johnson & Johnson earnings have beaten expectations a whopping 96% of the time, per Bespoke. However, the stock only averages a 0.3% gain on earnings days. Procter & Gamble is set to report earnings before the open, with a call slated for 8:30 a.m . Last quarter: PG earnings exceeded expectations, but weakness out of China put pressure on sales . This quarter: Analysts expect earnings to have remained flat year on year, LSEG data shows. What to watch: There are several factors that could muddle Procter’s earnings report, according to Barclays. “Commentary on the near-term … is less constructive and gives us comfort remaining on the sidelines for now. Specifically, in December, management highlighted worsening currency dynamics (particularly calling out weakness in the Brazilian real, Mexican peso and Russian ruble) as well as a negative impact from a cyber security incident at Blue Yonder, its transportation management service provider,” analyst Lauren Lieberman, who rates the stock as neutral, said in a note. What history shows: Procter & Gamble earnings have topped earnings expectations for seven straight quarters, Bespoke data shows.
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1349092555-eea82ad3c496454682859540d7709bb4.jpg "How Banking Is Adapting Blockchain Technology")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1483251775-fc4e2465da414b9ebc9344113de8a590.jpg "How Healthcare Is Applying Blockchain Technology")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1326083371-caad32fd82e44af3a06b4531ad18ef06.jpg "As an Investor, Do You Really Have To Listen to Quarterly Earnings Calls?")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1407759247-decece684d5b45ba86137c874742166b.jpg "Secrets to Slashing Your Shopping Bill—5 Expert-Approved Tips")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1310676218-935dfc0a44db4ba9a051099c36b8bd3d.jpg "Home Equity Loan With No Mortgage")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2155142467-857c47021e5d48d9ba414eb33d6c9596.jpg "10 Budget-Friendly Tips You’ll Wish You Knew Sooner")
:max_bytes(150000):strip_icc():format(jpeg)/Couplemeetingwithrealestateagentinfrontofhome-c0d4632a72284bb2af1e78b1661fbc5e.jpg "How Long Does Buying a Home Take?")