Earnings

Q4 company earnings season: will Netflix, Burberry and IBM’s share prices gain?

Q4 company earnings season kicks off this week with some big names reporting. Netflix [NFLX], Burberry [BRBY] and IBM’s [IBM] share prices could see movement when they update the market, and they’re not the only ones who could see volatility.

Johnson & Johnson’s [JNJ] share price could gain off the back of increased sales when it updates the market. And closing out the week, American Express’s [AXP] share price could soar if the credit card company beats analysts’ expectations.


Netflix share price

When they're reporting

21 January

Why investors should care

Netflix's share price jumped 10% after it beat analysts’ earnings expectations last quarter. But with new-found competition from Disney Plus and Apple TV, Netflix could see its subscriber numbers hit in Q4.

Key metric

Subscriber numbers

Analyst expectations/outlook

Analysts reckon Netflix will post earnings of $0.52 a share, down from the $1.47 seen last quarter. Revenue is expected to come in at $5.45 billion, while new subscribers is pegged at 7.9 million. Goldman Sachs analyst Heath Terry upped his price target on Netflix’s share price to $450 from $400 last week. While Terry expects earnings broadly in line with Wall Street forecasts, his target would be a huge 32% upside on the current share price.

See our full Netflix earnings preview >>

 

 

IBM share price

When they're reporting

21 January

Why investors should care

IBM's share price was choppy last week as two analysts cut their outlooks on the tech giant. Morgan Stanley’s Katy Huberty downgraded her outlook on the stock citing a decline in IT spending in 2020. Huberty trimmed her target to $155 from $170. This followed Evercore ISI analyst Amit Daryanani, who cut his target to $145 from $160 earlier in the week.

Key metric

EPS

Analyst expectations/outlook

Forecasts are for IBM to post $4.69 earnings per share, against $21.63 billion in revenue. That's a significant increase in the $2.68 eps seen in Q3. If these are, as Daryanani argues overly optimistic, then there could be some post-results volatility. Over the long-term, IBM has an average price target of $147.68 - a 6.5% increase on the current share price.

 

 

 

Johnson & Johnson share price

When they're reporting

22 January

Why investors should care

Johnson & Johnson's share price has delivered a healthy 14% return over the past 12 months. Q3 saw Johnson & Johnson beat Wall Street earnings expectations following strong cancer and prescription drug sales. Can they do it again?

Key metric

Revenue

Analyst expectations/outlook

Analysts are expecting Johnson & Johnson to post earnings per share of $1.87, against $20.78 billion revenues. That's a year on year decline of -0.51%. Yet according to Zacks Johnson & Johnson is "a compelling earnings-beat candidate". If another beat is in store, then Johnson & Johnson's share price could be worth a bet. A 12 month price target of $156.63 would see a 5.1% upside on the current price.

 

 

 

 

Burberry share price

When they're reporting

22 January

Why investors should care

Burberry's share price has climbed 32% over the past 12 months, and has been in the ascension since October. Last quarter, problems with margins and a decline in Hong Kong sales weighed on earnings. At the time Burberry warned that profits could continue to slip if anti-government protests in Hong Kong continued.

Key metric

Full year guidance

Analyst expectations/outlook

With disruption continuing in Hong Kong, Burberry's share price could be in for a drop on Wednesday. Still, the management team at Burberry have kept full-year guidance unchanged indicating there is optimism at the fashion brand. If guidance changes, expect Burberry’s share price to move.

See our full Burberry earnings preview >>

 

 

 

 

Intel share price

When they're reporting

23 January

Why investors should care

Intel's [INTC] share price is up more than 21% over the past 12 months. Last quarter's results saw the chipmaker beat Wall Street forecasts, with the stock rocketing as a result. All this against the background of the US-China trade war. PC sales have been improving, but data centre sales remain Intel's bread and butter. Any loss of ground to rivals will hurt Intel’s share price.

Key metric

Data centre sales

Analyst expectations/outlook

Expectations are for Intel to post $1.25 earnings per share, against $19.22 billion in revenue. That would be a slight improvement on the $1.24 seen last quarter. Nomura analyst David Wong thinks that 'improving data center business environment and firmness in the PC end market' should help the results. Wong has a $65 12 month price target - a 9% upside on the current share price.

 

 

 

 

American Express share price

When they’re reporting

24 January

Why investors should care

American Express's [AXP] share price has risen over 30% in the past 12 months, with an increase in momentum since December. Last quarter, the credit card company delivered a 2.50% earnings surprise - the third quarter in a row it had beaten analysts’ expectations. Can it make it a fourth?

Key metric

Gross profit

Analyst expectations/outlook

Analysts are expecting a quarter-on-quarter earnings dip when American Express updates the market on Friday. The consensus figure comes in at $2.01 earnings per share. While this is down from the $2.03 seen last quarter, it's 15.5% higher than the same quarter last year. Expectations are for $11.38 billion in revenues, up 8.6% from last year.

 

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