Netflix earnings, Trump speaks at Davos, IBM reports: 3 things to watch for on Tuesday

CEO Of Netflix, Reed Hastings, attends the red carpet during the Netflix presentation party at the Invernadero del Palacio de Cristal de la Arganzuela on April 4, 2019 in Madrid, Spain. Here are the most important things to know about Tuesday before you hit the door. Netflix is set to report its fourth-quarter results on Tuesday after the bell. Investors will pay attention to Netflix’s subscriber growth in light of the increased competition in the streaming space. Shares of Netflix have rallied


CEO Of Netflix, Reed Hastings, attends the red carpet during the Netflix presentation party at the Invernadero del Palacio de Cristal de la Arganzuela on April 4, 2019 in Madrid, Spain.
Here are the most important things to know about Tuesday before you hit the door.
Netflix is set to report its fourth-quarter results on Tuesday after the bell.
Investors will pay attention to Netflix’s subscriber growth in light of the increased competition in the streaming space.
Shares of Netflix have rallied
Netflix earnings, Trump speaks at Davos, IBM reports: 3 things to watch for on Tuesday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: yun li
Keywords: news, cnbc, companies, fourth, guidance, ibm, share, netflix, earned, davos, things, trump, streaming, reports, quarter, cents, thornton, earnings, speaks, watch


Netflix earnings, Trump speaks at Davos, IBM reports: 3 things to watch for on Tuesday

CEO Of Netflix, Reed Hastings, attends the red carpet during the Netflix presentation party at the Invernadero del Palacio de Cristal de la Arganzuela on April 4, 2019 in Madrid, Spain.

Here are the most important things to know about Tuesday before you hit the door.

Netflix is set to report its fourth-quarter results on Tuesday after the bell.

Wall Street analysts are expecting the streaming media company to have earned 52 cents per share in the fourth quarter, more than the 30 cents per share it earned in the same quarter a year ago, according to FactSet.

Investors will pay attention to Netflix’s subscriber growth in light of the increased competition in the streaming space. SunTrust analyst Matthew Thornton said he expects international paid subscription to grow by 7 million in the fourth quarter, in line with guidance, while domestic membership is expected to come in slightly ahead of the guidance of 0.6 million.

Shares of Netflix have rallied 15% in the past three months, despite the launch of Disney+ in mid-November.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: yun li
Keywords: news, cnbc, companies, fourth, guidance, ibm, share, netflix, earned, davos, things, trump, streaming, reports, quarter, cents, thornton, earnings, speaks, watch


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Stocks making the biggest moves premarket: Morgan Stanley, Southwest, Tesla, Netflix & more

Southwest Airlines (LUV) – Southwest took Boeing’s (BA) grounded 737 Max jet off its flight schedule through June 6. XPO Logistics (XPO) – XPO is considering a sale of the company or a spin-off of one or more business units. Tesla (TSLA) – Tesla saw vehicle registrations in California cut nearly in half during the fourth quarter of 2019 compared to a year earlier. Netflix (NFLX) – Netflix is collaborating with Ben & Jerry’s on a new ice cream flavor called “Netflix & Chilll’d.” PPG Industries (P


Southwest Airlines (LUV) – Southwest took Boeing’s (BA) grounded 737 Max jet off its flight schedule through June 6.
XPO Logistics (XPO) – XPO is considering a sale of the company or a spin-off of one or more business units.
Tesla (TSLA) – Tesla saw vehicle registrations in California cut nearly in half during the fourth quarter of 2019 compared to a year earlier.
Netflix (NFLX) – Netflix is collaborating with Ben & Jerry’s on a new ice cream flavor called “Netflix & Chilll’d.”
PPG Industries (P
Stocks making the biggest moves premarket: Morgan Stanley, Southwest, Tesla, Netflix & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: peter schacknow
Keywords: news, cnbc, companies, revenue, netflix, premarket, making, moves, tesla, fourth, southwest, stanley, morgan, xpo, recent, company, vaporfly, vehicle, share, cents, decline, biggest, stocks


Stocks making the biggest moves premarket: Morgan Stanley, Southwest, Tesla, Netflix & more

Check out the companies making headlines before the bell:

Morgan Stanley (MS) – The investment bank reported quarterly earnings of $1.30 per share, beating the consensus estimate of 99 cents a share. The $1.30 including a 10 cent discrete tax benefit. Revenue was well above Wall Street forecasts, with firmwide revenue exceeding $10 billion for the fourth consecutive quarter.

Southwest Airlines (LUV) – Southwest took Boeing’s (BA) grounded 737 Max jet off its flight schedule through June 6.

XPO Logistics (XPO) – XPO is considering a sale of the company or a spin-off of one or more business units. Such a move would reverse recent strategy for the provider of warehousing and delivery services, which made 17 acquisitions from 2011 to 2015.

Tesla (TSLA) – Tesla saw vehicle registrations in California cut nearly in half during the fourth quarter of 2019 compared to a year earlier. That decline comes amid a significant drop in federal tax credits for electric vehicle buyers during 2019. Separately, Tesla was downgraded to “underweight” from “equal-weight” at Morgan Stanley, which pointed to the recent stock run-up as well as long term risks to the automaker’s China business.

Taiwan Semiconductor (TSM) – Taiwan Semi said its current-quarter revenue should show a 45% jump compared to a year ago. The world’s largest contract chipmaker also raised its capital spending plan for the year on expectations of strong demand for 5G smartphones.

American Outdoor Brands (AOBC) – The company said CEO James Debney left the Smith & Wesson parent after he was found to have engaged in behavior “inconsistent with a non-financial company policy.” The company did not provide more details.

Alcoa (AA) – Alcoa lost 31 cents per share for the fourth quarter, wider than the 22 cents a share loss that analysts had been expecting. The aluminum producer’s revenue also came in below estimates, due in large part to lower prices. Alcoa said it expected aluminum demand to pick up this year.

Netflix (NFLX) – Netflix is collaborating with Ben & Jerry’s on a new ice cream flavor called “Netflix & Chilll’d.” The new flavor mixes pretzel swirls and fudge brownies in peanut butter ice cream.

Nike (NKE) – Nike’s Vaporfly shoe reportedly is set to be banned by World Athletics, amid allegations that it gives an unfair advantage to runners. The Daily Mail reports that the shoe’s design is under review, with findings to be revealed later this month. The Vaporfly has been worn by both men and women in recent record-breaking marathon races.

GlaxoSmithKline (GSK) – A Glaxo executive told Bloomberg that the drugmaker has not given much thought to an initial public offering of its consumer health care joint venture with Pfizer (PFE). The comments come after Pfizer CEO Albert Bourla said such a move could happen within three to four years.

Spirit Airlines (SAVE) – The airline updated its fourth-quarter guidance, saying a decline in total operating revenue per available seat mile would decline less than previously expected.

PPG Industries (PPG) – The paint maker missed estimates by 3 cents a share, with quarterly profit of $1.31 per share. Revenue also came in slightly below Street forecasts. with PPG noting weak conditions in the industrial markets that it serves.


Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: peter schacknow
Keywords: news, cnbc, companies, revenue, netflix, premarket, making, moves, tesla, fourth, southwest, stanley, morgan, xpo, recent, company, vaporfly, vehicle, share, cents, decline, biggest, stocks


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WeWork’s leasing activity plunged 93% in the fourth quarter after failed IPO attempt

After pulling its much-hyped IPO late last year and raising emergency funding from SoftBank, WeWork’s leasing activity in the fourth quarter slowed to a crawl. The industry-wide numbers from CBRE show how much WeWork had come to dominate the co-working space market, fueled by billions of dollars in equity funding from SoftBank. Newly leased space in the flexible office leasing market plummeted 75% in the fourth quarter to just under 1 million square feet from 3.95 million in the prior period, an


After pulling its much-hyped IPO late last year and raising emergency funding from SoftBank, WeWork’s leasing activity in the fourth quarter slowed to a crawl.
The industry-wide numbers from CBRE show how much WeWork had come to dominate the co-working space market, fueled by billions of dollars in equity funding from SoftBank.
Newly leased space in the flexible office leasing market plummeted 75% in the fourth quarter to just under 1 million square feet from 3.95 million in the prior period, an
WeWork’s leasing activity plunged 93% in the fourth quarter after failed IPO attempt Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: ari levy
Keywords: news, cnbc, companies, weworks, activity, leasing, quarter, fourth, wework, attempt, ipo, space, square, feet, million, cbre, market, plunged, failed


WeWork's leasing activity plunged 93% in the fourth quarter after failed IPO attempt

After pulling its much-hyped IPO late last year and raising emergency funding from SoftBank, WeWork’s leasing activity in the fourth quarter slowed to a crawl.

The company signed only four leases covering 184,022 square feet of space in the last three months of 2019, marking a 93% drop from an average of 2.54 million square feet over the previous four quarters, according to data that real estate firm CBRE shared with CNBC and will release publicly this week.

With such a dramatic slowdown, WeWork ceded the top spot in the flexible office leasing market to Spaces, owned by Regus parent IWG, which increased its new lease footprint by 11% to 284,916 square feet in the period from its four-quarter average, CBRE said.

WeWork’s pullback reflects a downsizing of the business after SoftBank took over 80% control in October with a $5 billion financing package that kept the company afloat. The next month, WeWork announced 2,400 job cuts, or about 19% of its total workforce, as part of an effort to “create a more efficient organization.” The company has divested noncore businesses and shut its WeGrow private school while telling employees that it will focus on serving large businesses rather than small and mid-sized clients.

The industry-wide numbers from CBRE show how much WeWork had come to dominate the co-working space market, fueled by billions of dollars in equity funding from SoftBank.

Newly leased space in the flexible office leasing market plummeted 75% in the fourth quarter to just under 1 million square feet from 3.95 million in the prior period, and WeWork’s share dropped to 18% from 69%. Manhattan was still the largest market, even as new space leased dropped 82% to 187,078 square feet from over 1 million, on average, the prior four quarters. Activity in Chicago fell 89%, while Boston and Los Angeles saw declines of 84% and 75%, respectively.

“We had seen this coming right after the IPO news,” said Julie Whelan, senior director of research at CBRE, in an interview.

Two of WeWork’s projects in the quarter were in Manhattan (one new lease and one expansion), one was in San Francisco and the fourth was in Philadelphia.

Whelan said that demand for flexible work space remains plentiful, particularly as companies question how long this decade-plus of “unprecedented economic expansion” can continue. The flex model allows companies to operate on shorter leases, leaving them with more options in case market conditions change.


Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: ari levy
Keywords: news, cnbc, companies, weworks, activity, leasing, quarter, fourth, wework, attempt, ipo, space, square, feet, million, cbre, market, plunged, failed


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New Tesla registrations in California nearly halved in the fourth quarter

A Tesla logo is pictured during the Brussels Motor Show on January 9, 2020 in Brussels . (Photo by Kenzo TRIBOUILLARD / AFP) (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)Tesla’s overall vehicle registrations nearly halved in the U.S. state of California during the fourth quarter, according to a Dominion Cross-Sell report, which collates data from state motor vehicle records. The massive drop comes as tax credit for Tesla buyers ended in 2019. It had fallen to $3,750 at the start of the year


A Tesla logo is pictured during the Brussels Motor Show on January 9, 2020 in Brussels .
(Photo by Kenzo TRIBOUILLARD / AFP) (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)Tesla’s overall vehicle registrations nearly halved in the U.S. state of California during the fourth quarter, according to a Dominion Cross-Sell report, which collates data from state motor vehicle records.
The massive drop comes as tax credit for Tesla buyers ended in 2019.
It had fallen to $3,750 at the start of the year
New Tesla registrations in California nearly halved in the fourth quarter Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-16
Keywords: news, cnbc, companies, nearly, tax, quarter, tesla, motor, halved, registrations, vehicle, state, california, fourth, report


New Tesla registrations in California nearly halved in the fourth quarter

A Tesla logo is pictured during the Brussels Motor Show on January 9, 2020 in Brussels . (Photo by Kenzo TRIBOUILLARD / AFP) (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)

Tesla’s overall vehicle registrations nearly halved in the U.S. state of California during the fourth quarter, according to a Dominion Cross-Sell report, which collates data from state motor vehicle records.

The massive drop comes as tax credit for Tesla buyers ended in 2019. It had fallen to $3,750 at the start of the year and had halved to $1,875 in July.

An existing $7,500 U.S. tax credit for electric vehicles (EVs), which allows taxpayers to deduct a part of the cost of buying an electric car, phases out over 15 months once an automaker hits 200,000 cumulative EV sales, which Tesla hit in July 2018.

The report released on Wednesday showed registrations in California, a bellwether market for the electric-car maker, plummeted 46.5% to 13,584 in the quarter ended December 2019, from 25,402 in the same period a year earlier.

Model 3 registrations, which accounted for about three-fourth of the total, halved to 10,694.

Tesla did not immediately respond to a Reuters request for comment.

“One can assume that Tesla has hit peak performance in the U.S. because they have not exceeded their 2018 results for five months now,” said Shane Marcum, vice-president of Cross-Sell.

The new data comes nearly two weeks after Tesla beat Wall Street estimates for annual vehicle deliveries and met the low-end of its own target, sending shares to a record high in a vindication for Chief Executive Officer Elon Musk after a few turbulent years.


Company: cnbc, Activity: cnbc, Date: 2020-01-16
Keywords: news, cnbc, companies, nearly, tax, quarter, tesla, motor, halved, registrations, vehicle, state, california, fourth, report


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Morgan Stanley earnings, retail sales, manufacturing gauge: 3 things to watch for in the markets Thursday

Morgan Stanley set to reportThe nation’s fourth-largest bank reports fourth quarter earnings before the bell on Thursday. Barclays is expecting Morgan Stanley to report earnings of $1.08 per share, compared to the 80 cents per share earned in the same quarter last year. Shares of Morgan Stanley have risen more than 24% in the last three months. Retail salesWe’ll get a read on the health of the U.S. consumer on Thursday when the Commerce Department releases December retail sales. Excluding autos,


Morgan Stanley set to reportThe nation’s fourth-largest bank reports fourth quarter earnings before the bell on Thursday.
Barclays is expecting Morgan Stanley to report earnings of $1.08 per share, compared to the 80 cents per share earned in the same quarter last year.
Shares of Morgan Stanley have risen more than 24% in the last three months.
Retail salesWe’ll get a read on the health of the U.S. consumer on Thursday when the Commerce Department releases December retail sales.
Excluding autos,
Morgan Stanley earnings, retail sales, manufacturing gauge: 3 things to watch for in the markets Thursday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, manufacturing, stanley, retail, watch, quarter, expecting, economists, morgan, markets, trading, rise, gauge, sales, fourth, things, earnings


Morgan Stanley earnings, retail sales, manufacturing gauge: 3 things to watch for in the markets Thursday

Morgan Stanley headquarters in Times Square, New York. Source: Morgan Stanley

Here are the most important things to know about Thursday before you hit the door.

1. Morgan Stanley set to report

The nation’s fourth-largest bank reports fourth quarter earnings before the bell on Thursday. Barclays is expecting Morgan Stanley to report earnings of $1.08 per share, compared to the 80 cents per share earned in the same quarter last year. The firm expects Morgan Stanley’s total revenue to come in at $40.287 billion, compared to the $40.107 billion earned in the fourth quarter of 2018. Bank trading revenues have mostly surprised to the upside this earnings season as Wall Street’s sales and trading divisions see a pickup in activity. Barclays expects Morgan Stanley’s trading revenues to decrease from last quarter, but increase year-over-year. Shares of Morgan Stanley have risen more than 24% in the last three months.

2. Retail sales

We’ll get a read on the health of the U.S. consumer on Thursday when the Commerce Department releases December retail sales. December is one of the busiest months of the year for retail with the holiday shopping season, but retailer Target’s stock fell 7% on Wednesday after reporting disappointing holiday sales results. The big box retailer showed weakness in the toy and electronics categories. Economists are estimating a 0.3% rise in retail sales in December, according to data surveyed by Dow Jones. Retail sales increased less than expected in November as Americans cut back on discretionary spending because of bleaker economic growth forecasts for the fourth quarter. Retail sales rose 0.2% in November, while economists polled by Dow Jones were expecting a rise of 0.5%. Excluding autos, economists are expecting a 0.5% rise in retail sales in December, after a 0.1% rise in November.

3. Manufacturing gauge


Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, manufacturing, stanley, retail, watch, quarter, expecting, economists, morgan, markets, trading, rise, gauge, sales, fourth, things, earnings


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JP Morgan beats analysts’ estimate for fourth-quarter profit on record Wall Street revenue

J.P. Morgan Chase posted profit and revenue that exceeded analysts’ expectations on a surge in trading revenue at the end of 2019. The bank said Tuesday that fourth-quarter profit rose 21% to $8.52 billion, or $2.57 a share, compared to the $2.35 estimate of analysts surveyed by Refinitiv. CEO Jamie Dimon noted that his investment bank produced record revenue for a fourth quarter, aided by a rebound in trading revenue. CFO Jennifer Piepszak said last month that trading revenue was “meaningfully”


J.P. Morgan Chase posted profit and revenue that exceeded analysts’ expectations on a surge in trading revenue at the end of 2019.
The bank said Tuesday that fourth-quarter profit rose 21% to $8.52 billion, or $2.57 a share, compared to the $2.35 estimate of analysts surveyed by Refinitiv.
CEO Jamie Dimon noted that his investment bank produced record revenue for a fourth quarter, aided by a rebound in trading revenue.
CFO Jennifer Piepszak said last month that trading revenue was “meaningfully”
JP Morgan beats analysts’ estimate for fourth-quarter profit on record Wall Street revenue Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: hugh son
Keywords: news, cnbc, companies, estimate, quarter, income, fourthquarter, billion, revenue, profit, trading, interest, bank, street, beats, fourth, morgan, wall, record


JP Morgan beats analysts' estimate for fourth-quarter profit on record Wall Street revenue

J.P. Morgan Chase posted profit and revenue that exceeded analysts’ expectations on a surge in trading revenue at the end of 2019.

The bank said Tuesday that fourth-quarter profit rose 21% to $8.52 billion, or $2.57 a share, compared to the $2.35 estimate of analysts surveyed by Refinitiv. Managed revenue climbed 9% to $29.2 billion, compared with the $27.94 billion estimate. Shares of the bank gained 1.9% in early trading Tuesday.

CEO Jamie Dimon noted that his investment bank produced record revenue for a fourth quarter, aided by a rebound in trading revenue. For the full year, profit of $36.4 billion was a record as well.

“JPMorgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the firm where we achieved many records, including record revenue and net income,” Dimon said in the release. “While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year.”

CFO Jennifer Piepszak said last month that trading revenue was “meaningfully” higher in the fourth quarter versus a year ago. The rebound comes from the industry’s’ fixed-income trading operations, projected to rise 25% on average, versus a 3% bump in stock trading revenue, KBW analyst Brian Kleinhanzl wrote last month.

Bank stocks finished 2019 on a tear, outpacing the broader stock indices in the fourth quarter as investors rushed into an under-owned sector. J.P. Morgan, in particular, surged last year, climbing about 40%, a sharp move higher than prompted some analysts to cut their recommendations based on valuation.

But banks may face pressure this year as interest rates stay low or are even slashed further. The Federal Reserve cut its benchmark rates for the third time in October, and that pressures net interest income, or the revenue that banks garner from collecting loan payments, minus the interest it pays to depositors.

Here’s what Wall Street expected:

Earnings: $2.35 a share, a 19% increase from a year earlier, according to Refinitiv.

Revenue: $27.94 billion, a 4.2% increase from a year earlier.

Net Interest Margin: 2.37%, according to FactSet

Trading Revenue: Fixed income $2.61 billion, Equities $1.37 billion

This story is developing. Please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: hugh son
Keywords: news, cnbc, companies, estimate, quarter, income, fourthquarter, billion, revenue, profit, trading, interest, bank, street, beats, fourth, morgan, wall, record


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Delta’s fourth-quarter profit beats estimates thanks to cheaper fuel and strong travel demand

Delta Air Lines’ fourth quarter profits topped Wall Street’s expectations, as lower fuel prices and strong travel — particularly for high-priced premium tickets — demanded lifted the Atlanta-based carrier’s results. Delta reported net income of $1.1 billion, up 8% from the fourth quarter of 2018. Here’s how Delta did in the fourth quarter of 2019 compared with what Wall Street expected:Adjusted earnings per share: $1.70 versus $1.40 expected. Revenue: $11.44 billion versus $11.35 billion expecte


Delta Air Lines’ fourth quarter profits topped Wall Street’s expectations, as lower fuel prices and strong travel — particularly for high-priced premium tickets — demanded lifted the Atlanta-based carrier’s results.
Delta reported net income of $1.1 billion, up 8% from the fourth quarter of 2018.
Here’s how Delta did in the fourth quarter of 2019 compared with what Wall Street expected:Adjusted earnings per share: $1.70 versus $1.40 expected.
Revenue: $11.44 billion versus $11.35 billion expecte
Delta’s fourth-quarter profit beats estimates thanks to cheaper fuel and strong travel demand Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: leslie josephs
Keywords: news, cnbc, companies, fuel, versus, share, thanks, reported, strong, delta, fourthquarter, billion, deltas, profit, demand, earnings, stake, estimates, cheaper, fourth, travel, wall, quarter


Delta's fourth-quarter profit beats estimates thanks to cheaper fuel and strong travel demand

Delta Air Lines’ fourth quarter profits topped Wall Street’s expectations, as lower fuel prices and strong travel — particularly for high-priced premium tickets — demanded lifted the Atlanta-based carrier’s results.

Before the market opened on Tuesday, Delta reported per-share adjusted earnings of $1.70, compared with analysts’ expectations of $1.40 a share and a more than 30% increase from a year earlier.

Delta doesn’t have the beleaguered Boeing 737 Max in its fleet, the plane that has been grounded since March after two fatal crashes in Indonesia and Ethiopia killed 346 people. Competitors American, Southwest and United do have the Max in their fleets and have had to scale back growth planes without the fuel-efficient jets cleared by regulators to return to service.

Delta shares were up close to 2% in premarket trading after it reported results.

Delta reported net income of $1.1 billion, up 8% from the fourth quarter of 2018. Revenues in the three months ended Dec. 31 rose 6% from a year earlier to $11.44 billion, slightly above analysts’ estimates.

Delta benefited from cheaper fuel and the unwinding of its minority stake in Brazilian carrier Gol, the result of Delta’s new stake in Gol’s larger South American competitor Latam.

Here’s how Delta did in the fourth quarter of 2019 compared with what Wall Street expected:

Adjusted earnings per share: $1.70 versus $1.40 expected.

Revenue: $11.44 billion versus $11.35 billion expected.

Delta said it expects unit revenues to be flat to up 2% in the first quarter of 2020, and flat margins. The airline reiterated its 2020 guidance of earnings per share of $6.75 to $7.75.


Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: leslie josephs
Keywords: news, cnbc, companies, fuel, versus, share, thanks, reported, strong, delta, fourthquarter, billion, deltas, profit, demand, earnings, stake, estimates, cheaper, fourth, travel, wall, quarter


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Earnings beats will give the record rally credibility, market bull Sam Stovall predicts

CFRA Research’s Sam Stovall expects the market’s record rally to earn its street cred. According to Stovall, the process should begin this week as the nation’s biggest companies report 2019 fourth quarter results. “The bar for the fourth quarter is actually set relatively low,” said Stovall. Stovall’s year-end S&P 500 target implies stocks will move deeper into record territory. “By year-end, we’re looking for 3,435 which implies about a mid-7% price appreciation from where we closed 2019,” Stov


CFRA Research’s Sam Stovall expects the market’s record rally to earn its street cred.
According to Stovall, the process should begin this week as the nation’s biggest companies report 2019 fourth quarter results.
“The bar for the fourth quarter is actually set relatively low,” said Stovall.
Stovall’s year-end S&P 500 target implies stocks will move deeper into record territory.
“By year-end, we’re looking for 3,435 which implies about a mid-7% price appreciation from where we closed 2019,” Stov
Earnings beats will give the record rally credibility, market bull Sam Stovall predicts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: stephanie landsman
Keywords: news, cnbc, companies, earnings, street, rally, credibility, quarter, bull, stovall, yearend, market, sam, beats, fourth, 2019, eps, record, predicts


Earnings beats will give the record rally credibility, market bull Sam Stovall predicts

CFRA Research’s Sam Stovall expects the market’s record rally to earn its street cred.

According to Stovall, the process should begin this week as the nation’s biggest companies report 2019 fourth quarter results.

“We need to actually see a positive jump for the fourth quarter of 2019 and then start to see some optimistic guidance for the coming quarters,” the firm’s chief investment strategist told CNBC’s “Trading Nation” on Monday.

He believes the probability of that scenario is high.

“The bar for the fourth quarter is actually set relatively low,” said Stovall. “I always like to that say it’s very hard to injure yourself falling out of a basement window.”

Earnings estimates are still depressed, and it appears they’re getting worse. Refinitiv reports Wall Street expects Q4 earnings per share to fall 0.7% from year-ago levels. They were down 0.3% on Jan. 1.

However, Stovall suggests investors shouldn’t get too worried.

“Q3 was the 31st consecutive quarter in which the reported EPS change exceeded the estimated EPS change. In addition, in those prior 31 quarters, actual results outpaced forecasts by an average 3.8 percentage points,” Stovall wrote in his earnings outlook research note. “So should history repeat itself in Q4, and there’s no guarantee it will, EPS growth may come in closer to a 2.0% advance than a 2.0% shortfall.”

Stovall speculates the strongest growth will come from financials, health care and utilities while consumer discretionary, energy and materials cope with record double-digit declines. Indeed, J.P. Morgan Chase on Tuesday kicked on earnings season for financials with a huge earnings beat.

Stovall’s year-end S&P 500 target implies stocks will move deeper into record territory.

“By year-end, we’re looking for 3,435 which implies about a mid-7% price appreciation from where we closed 2019,” Stovall said. “Add a couple of percentage points for total return, and we’re approaching the 10% level.”

The S&P 500 on Monday closed 4.5% below his target.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: stephanie landsman
Keywords: news, cnbc, companies, earnings, street, rally, credibility, quarter, bull, stovall, yearend, market, sam, beats, fourth, 2019, eps, record, predicts


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Stock prices keep going up, but earnings are failing to keep pace

The bad news is that stock prices keep going up, but earnings estimates keep coming down over the last several months. S&P 500 earnings estimates Fourth quarter: Down 0.6% First quarter: Up 6.0% Second Quarter: Up 7.2% Source: RefinitivOf course, it is typical for analysts to overestimate earnings gains and see them come in lower as we get closer to the quarter that is being examined. What is not typical is to have this happen with the markets at historic highs: The S&P rallied 12% in the fourth


The bad news is that stock prices keep going up, but earnings estimates keep coming down over the last several months.
S&P 500 earnings estimates Fourth quarter: Down 0.6% First quarter: Up 6.0% Second Quarter: Up 7.2% Source: RefinitivOf course, it is typical for analysts to overestimate earnings gains and see them come in lower as we get closer to the quarter that is being examined.
What is not typical is to have this happen with the markets at historic highs: The S&P rallied 12% in the fourth
Stock prices keep going up, but earnings are failing to keep pace Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: bob pisani
Keywords: news, cnbc, companies, failing, quarter, 500, earnings, market, going, pace, prices, stock, 2019, jan, 2020, higher, estimates, fourth


Stock prices keep going up, but earnings are failing to keep pace

The good news is that stocks are continuing to rally because the market is assuming the magic combination of continuing job growth, a trade truce, a friendly Federal Reserve, and a bottom on declining global growth will produce an expansion of earnings in 2020.

The bad news is that stock prices keep going up, but earnings estimates keep coming down over the last several months. Estimates for the fourth quarter of 2019 are now slightly negative, and while estimates are still up for the first and second quarters of 2020, they have been coming down fast.

S&P 500 earnings estimates Fourth quarter: Down 0.6% First quarter: Up 6.0% Second Quarter: Up 7.2% Source: Refinitiv

Of course, it is typical for analysts to overestimate earnings gains and see them come in lower as we get closer to the quarter that is being examined.

What is not typical is to have this happen with the markets at historic highs: The S&P rallied 12% in the fourth quarter on expectations earnings would be higher in 2020.

The trend for the companies reporting early for the fourth quarter — which includes notable disappointments from Federal Express, Micron, and Bed Bath & Beyond — is somewhat worrisome, said Nick Raich of the Earnings Scout.

“Given the EPS estimate revision trends of the early 4Q 2019 reporters, it is likely a vast majority of S&P 500 companies will be lowering their 2020 EPS estimates,” he said.

Prices up and earnings down means the multiple at which the market trades is climbing fast.

On Jan. 1, 2019, stocks were cheap at 13.9 times forward earnings for the S&P 500, well below the historic norm of roughly 16. On Jan. 1, 2020, it was at 18.0, and today it is at 18.4, the higher end of its range in the last 20 years.

S&P 500: Forward PEs getting pricey Jan. 1 2019: 13.9 Jan. 1 2020: 18.0 Jan. 9 2020: 18.4 Source: Earnings Scout/Refinitiv

The obvious conclusion is that future stock gains will require the multiple to go even higher. “How much are you willing to pay?” Raich asks.

“It may not be euphoric pricing, but we are getting there,” he said. “Any negative factor that re-emerges is going to drop the market fast.”

What could that be? The Fed retreating from its neutral position, some signs the U.S. consumer is getting exhausted, or a return to tariff wars, Raich said.

The opposite problem — how to keep the market advancing with declining earnings — is just as urgent.

“The biggest problem is high expectations,” said Alec Young, Managing Director, Global Markets Research at FTSE Russell.

Young is not even sure that a strong December jobs report out Friday would be enough, given that this is already largely priced into the market. The current expectation is for a gain of 160,000 jobs.

“The bulls need a strong, clean jobs number, close to 200,000, wage growth 3% or a little higher,” to keep up the narrative of a strong consumer.


Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: bob pisani
Keywords: news, cnbc, companies, failing, quarter, 500, earnings, market, going, pace, prices, stock, 2019, jan, 2020, higher, estimates, fourth


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Stocks making the biggest moves after the bell: KB Home, Intuitive Surgical, NortonLifeLock and more

Shares of KB Home fell more than 1.5% in extended trading after the company reported lighter-than-expected revenue for its fourth quarter. Shares of Intuitive Surgical rose 2.4% in extended trading after releasing preliminary results for its fourth quarter. NortonLifeLock’s stock rose 2.5% in extended trading after the company announced a special dividend. Portola Pharmaceutical saw its stock drop 39% in extended trading after releasing preliminary revenue numbers. This was more than the fourth


Shares of KB Home fell more than 1.5% in extended trading after the company reported lighter-than-expected revenue for its fourth quarter.
Shares of Intuitive Surgical rose 2.4% in extended trading after releasing preliminary results for its fourth quarter.
NortonLifeLock’s stock rose 2.5% in extended trading after the company announced a special dividend.
Portola Pharmaceutical saw its stock drop 39% in extended trading after releasing preliminary revenue numbers.
This was more than the fourth
Stocks making the biggest moves after the bell: KB Home, Intuitive Surgical, NortonLifeLock and more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-09  Authors: jesse pound
Keywords: news, cnbc, companies, bell, surgical, nortonlifelock, stocks, company, earnings, share, making, biggest, extended, intuitive, results, revenue, billion, trading, quarter, fourth, moves


Stocks making the biggest moves after the bell: KB Home, Intuitive Surgical, NortonLifeLock and more

Take a look at the companies making headlines after the bell.

Shares of KB Home fell more than 1.5% in extended trading after the company reported lighter-than-expected revenue for its fourth quarter. The homebuilder posted $1.31 in earnings per share and $1.56 billion in revenue. Analysts expected $1.29 in earnings per share but $1.61 billion in revenue, according to Refinitiv. KB Home also reported more orders than analysts expected, but the average sale price dipped slightly.

Shares of Intuitive Surgical rose 2.4% in extended trading after releasing preliminary results for its fourth quarter. The medical device company said it expects to report $1.278 billion in revenue for the fourth quarter and $4.479 billion for the full year. Both are at least 20% above 2018 results, according to the company. Intuitive is slated to release its final earnings report on Jan. 23.

NortonLifeLock’s stock rose 2.5% in extended trading after the company announced a special dividend. The company is paying $12 per share, for a total of roughly $8 billion. NortonLifeLock will report its earnings for the fiscal third quarter next month.

Portola Pharmaceutical saw its stock drop 39% in extended trading after releasing preliminary revenue numbers. The company said that net revenue from its Andexxa drug in the United States was roughly $24 million for the fourth quarter. This was more than the fourth quarter the year prior, but a $9 million decrease from its results in the third quarter. The company said declining demand due to changes in hospital utilization was one reason for shrinking revenue.

Shares of Moderna spiked more than 15% after hours following the release of data that show positive safety results for a vaccine the company is developing. Moderna has already begun phase two of testing for the vaccine, which is supposed to prevent cytomegalovirus. The company said phase three of testing could begin next year.


Company: cnbc, Activity: cnbc, Date: 2020-01-09  Authors: jesse pound
Keywords: news, cnbc, companies, bell, surgical, nortonlifelock, stocks, company, earnings, share, making, biggest, extended, intuitive, results, revenue, billion, trading, quarter, fourth, moves


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