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Next week marks the start of earnings season, with a number of major companies set to announce their quarterly financial results, providing insights into various sectors.
Among the most notable companies in the spotlight are Bank of America (BAC), Johnson & Johnson (JNJ), Netflix (NFLX), Taiwan Semiconductors (TSM), Procter & Gamble (PAGE), UnitedHealth (UNH), the Morgan children (KMI), ASML (ASML), Goldman Sachs (GS), Nokia (ENOUGH), Black Stone (BX), Abbott Labs (ABT), Morgan Stanley (SM), American Express (AXP), Schlumberger (SLB), Intuitive Surgical (ISRG), Crown Castle (CCI), United Airlines (UAL), US Bancorp (USB), Alcoa (aa) and Prologis (PLD).
Below is a summary of key quarterly updates scheduled for the week of April 15-19:
Monday 15 April
Goldman Sachs (GS)
Following a slew of bank earnings reported late last week, Goldman Sachs (GS) will release first-quarter results before the opening bell on Monday. Analysts expect a year-over-year decline in EPS and revenue growth of around 6%. Wall Street analysts maintain a Buy rating on the stock, while the Seeking Alpha Quant Rating system sees the stock as a Hold, indicating valuation and profitability issues.
In March, the CFRA upgraded Goldman to Buy, partly on the back of positive results in capital raising and mergers and acquisitions.
SA Investing Group leader Envision Research recently downgraded the stock to Hold from previous buy, citing several factors, driven by short-term risk/reward analysis, with the current valuation seen as elevated relative to historical averages. Furthermore, signs of pressure on profitability and weak technical indicators suggest a window of lateral consolidation in the near term. Based on these considerations, Envision Research believes that GS may not be able to deliver the level of returns seen in recent months.
Recently, proxy advisor Institutional Shareholder Services recommended that Goldman Sachs (GS) shareholders split the roles of chairman and CEO, both currently held by David Solomon.
- Consensus EPS Estimates: $8.64
- Consensus revenue estimates: $12.93 billion
- Earnings Analysis: Goldman Sachs has exceeded revenue expectations in 6 of the last 8 quarters, missing EPS estimates three times in that span.
Also reporting: The Charles Schwab Corporation (SCHW), M&T Bank Corporation (MTB), Safe & Green Holdings (SGBX), Skillsoft (SKIL), Park National Corporation (PRK), Inspired Entertainment (INSE), FB Financial Corporation (FBK), Unity Bancorp (UNTY) and more.
Tuesday 16 April
Bank of America (BAC)
Bank of America (BAC) is set to announce its first-quarter earnings before the market opens on Tuesday, along with Morgan Stanley (MS). The report comes just days after JP Morgan (JPM), Citigroup (C), Blackrock (BLK) and Wells Fargo (WFC) reported better-than-expected first-quarter results.
SA author The Alpha Sieve believes that while the “higher for longer period” narrative should benefit BAC due to its relatively high asset sensitivity, the stock’s future valuations are no longer attractive. The author also does not find the risk-reward ratio on long-term charts attractive and suggests that the stock may not benefit from rotational interest.
On the other hand, SA Noah analyst Arc Capital Management predicts that the first-quarter results will “cast a favorable light on Bank of America’s ability to sustain strong NII revenues with interest rates at or near their peak.”
Last week, UBS downgraded Bank of America (BAC) to Neutral from Buy, as analyst Erika Najarian now sees the stock at fair value after adjusting estimates to reflect three Fed rate cuts in 2024 and four cuts in 2025.
The bank gets a Hold rating from Seeking Alpha’s Quant Rating system, compared to the consensus Buy rating from Wall Street analysts.
- Consensus EPS Estimates: $0.77
- Consensus revenue estimates: $25.39 billion
- Earnings Analysis: The bank has exceeded EPS and revenue expectations in 6 of the last 8 quarters.
Also reporting: Johnson & Johnson (JNJ), UnitedHealth (UNH), Morgan Stanley (MS), United Airlines Holdings (UAL), Telefonaktiebolaget LM Ericsson (publ) (ERIC), The Bank of New York Mellon Corporation (BK), The PNC Financial Services Group (PNC), Omnicom Group (OMC), Interactive Brokers Group (IBKR), JB Hunt Transport Services (JBHT), Ontrak (OTRK) and more.
Wednesday 17 April
Abbott Laboratories (ABT)
Healthcare conglomerate Abbott Laboratories (ABT) will release its first-quarter financials before the bell Wednesday. The company recently received FDA approval for a device designed to treat tricuspid regurgitation and FDA clearance for its i-STAT TBI test cartridge, which provides lab-quality results for patients with suspected concussions brain within 15 minutes.
Abbott receives a Hold rating from Seeking Alpha’s Quant Rating System, in contrast to Wall Street analysts’ consensus Buy rating.
SA author Kody’s Dividend sees Abbott as an attractive investment opportunity thanks to its improving operating fundamentals, strong free cash flow that supports potential dividend growth, and an admirable balance sheet. The stock’s slight undervaluation reinforces Kody’s optimism about the stock.
- Consensus EPS Estimates: $0.95
- Consensus revenue estimates: $9.88 billion
- Earnings Analysis: The company has exceeded earnings and revenue expectations in 8 consecutive quarters.
Also reporting: Kinder Morgan (KMI), ASML Holding NV (ASML), Alcoa Corporation (AA), Crown Castle (CCI), Las Vegas Sands (LVS), US Bancorp (USB), CSX Corporation (CSX), Prologis (PLD), Discover Financial Services (DFS), The Travelers Companies (TRV), Citizens Financial Group (CFG) and more.
Thursday 18 April
Netflix (NFLX)
Streaming giant Netflix (NFLX) will report first-quarter financial results on Thursday, after the closing bell. The stock is up more than 86% in a 12-month period and is up nearly 30% year-over-year, driven by successful strategies such as cracking down on password sharing and introducing ad-enabled tiers.
The Seeking Alpha Quant Rating system maintains a Hold rating on the stock in contrast to the Buy rating from Wall Street analysts.
SA contributor The Beginner Investor downgraded Netflix from Strong Buy to Buy. The stock’s possible upside of 15.3% and fair price of $733.25 are no longer seen as justifying a “strong buy” rating, the analyst said. Despite this, the author remains optimistic about the opportunities presented by Netflix’s crackdown on password sharing and the potential for an advertising layer.
- Consensus EPS Estimates: $4.53
- Consensus revenue estimates: $9.28 billion
- Earnings Analysis: Netflix has surpassed EPS estimates in 6 of the last 8 quarters, exceeding revenue expectations in only 3 of those reports.
Also reporting: Nokia Oyj (NOK), Taiwan Semiconductor Manufacturing Company Limited (TSM), Intuitive Surgical (ISRG), Alaska Air Group (ALK), DR Horton (DHI), Genuine Parts Company (GPC), KeyCorp (KEY), Infosys Limited ( INFY), Ally Financial (ALLY), PPG Industries (PPG), T2 Biosystems (TTOO), Iridium Communications (IRDM), Snap-on (SNA), Marsh & McLennan Companies (MMC) and more.
Friday 19 April
Schlumberger Limited (SLB)
The world’s largest oilfield services company, Schlumberger (SLB), is expected to report first-quarter earnings data in premarket hours on Friday. In the previous quarter, the company beat expectations, driven by strong growth in its international business. For the first quarter, Schlumberger guided revenue growth in the low range year-over-year and EBITDA growth in the mid-range, with expectations for a seasonal rebound in business in the second quarter and a further acceleration of growth in the second half the year.
The company’s shares have earned a Strong Buy rating from Wall Street analysts, while Seeking Alpha’s Quant Rating system continues to take a cautious stance with a Hold rating.
Regarding the recent acquisition of ChampionX by Schlumberger (SLB) in an all-stock deal worth around $7.8 billion, SA writer The Energy Realist believes the majority of ChampionX’s acquired business is resistant to declines in capital expenditure. The author suggests that these assets may be in high demand several years from now, when currently developed upstream assets mature.
- Consensus EPS Estimates: $0.75
- Consensus revenue estimates: $8.70 billion
- Earnings Analysis: The company has beaten EPS estimates in 8 consecutive quarters and revenue estimates in 6 of these reports.
Also reporting: The Procter & Gamble Company (PG), Schlumberger Limited (SLB), American Express Company (AXP), ARMOR Residential REIT, Inc. (ARR), Huntington Bancshares Incorporated (HBAN), Regions Financial Corporation (RF), Fifth Third Bancorp (FITB), Wipro Limited (WIT) and more.