Netflix Highlights US Earnings
US 4th quarter earnings season steps up this week with more than 80 S&P 500 companies due to unveil their updates.
But the partial shutdown of the US government on Friday night will overshadow the reporting season until it is sorted out.
Netflix tomorrow morning, our time will be one of the most eagerly watched because of its importance as a banner leader for new tech and media with its growing video streaming business.
It’s projections on subscriber growth forthis year will be important for maintaining investor confidence in the sector, as will figures from cable giant, Comcast.
Results from manufacturers such as Caterpillar, Raytheon and Honeywell will be closely watched to see if export demand is still doing as well as it seemed a few months ago.
General Electric’s quarterly report will be a flood of red ink and one of the messiest of the reporting season as the stuttering giant tries to change course.
Among those due to unveil results are Verizon, Netflix, United Technologies, General Electric, Ford, Caterpillar, Starbucks, Wynn Resorts, Comcast, 3M, Colgate Palmolive, Freeport McMoRan,Intel, General Dynamics, Johnson & Johnson, Baker Hughes GE, Texas Instruments, Procter and Gamble, Abbott Labs, American Airlines, Raytheon and Honeywell.
Thus far this earnings season, fewer companies — roughly 68% — are reporting earnings ahead of analysts’ estimates, compared to the five-year average, according to FactSet.
The US tax reform enacted late last year has muddied results.
"In aggregate, companies are reporting earnings that are 53.0% below the estimates, which is well below the five-year average. In terms of sales, more companies (85%) are reporting actual sales above estimates compared to the five-year average.
“In aggregate, companies are reporting sales that are 0.9% above estimates, which is also above the five-year average,” FactSet reported.
In Australia the week’s major result expected comes today when investment giant, Australian Foundation Investment Co releases its interim figures.
Mining companies will continue to unveil their quarterly updates - led by Santos.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.