This week, the wage season will grow, giving investors a new set of business profitability data as they face higher inflationary pressures.
The two biggest names announced this week will include Netflix (NFLX) and Tesla (TSLA), giving an early look at how some of the mega-cap technology companies performed earlier this year.
Other names to be announced this week will cover a number of industries, expanding the bank-based results last week. Companies including United Airlines (UAL), American Express (AXP), Johnson & Johnson (JNJ) and Kimberly-Clark (KMB) each are in the stable to report in the coming days.
In the current revenue season, the results have been mixed, albeit significantly distorted from financial statements reported last week including JPMorgan Chase (JPM) and Goldman Sachs (GS). About 7% of the S&P 500 index components reported actual Q1 results so far, and 77% of these have exceeded Wall Street earnings per share (EPS), equivalent to a median percentage of five years, according to data from on FactSet. The index's average wage growth rate currently stands at 5.1%, which if continued throughout the season could indicate the lowest wage growth rate for the fourth quarter of 2020.
Netflix revenue
Netflix is expected to report the results on Tuesday, with investors looking closely to see further signs of a slowdown in the broadcasting giant following an increase in the number of subscribers during the epidemic.
Analysts' consensus estimates suggest that Netflix will add about 2.51 million subscribers in the first quarter, which is a small mark from the second quarter of 2021. This will bring the total number of Netflix subscribers to just under 225 million. In the same quarter last year, subscribers grew by about 4 million.
Although Netflix has already seen subscriber growth slow down from the peak of the epidemic, the giant exit from Russia in early March could also contribute to the decline. Company based in Los Gatos, Calif. suspended operations in Russia on March 6 due to an invasion of Ukraine, and since then, analysts have continued to reduce their ratings.
"We are now awaiting an additional payment of 1.45MM, which is less than the 2.5MM guideline when given the suspension of Russia (~ 1MM subs)," Cowen commentator John Blackledge wrote in a paper last week. The company also reduced its price on Netflix to $ 590 a share from $ 600 previously, due to a lower subscription growth rate.
Tesla revenue
At that time, another major company that will report results this week will be Tesla.
The electric car manufacturer is scheduled to submit its quarterly report on Wednesday after the market closed. Prior to the results, Tesla announced the delivery of more than 310,000 records during the first three months of this year. That was an increase of 68% over last year's delivery. Tesla wants to grow by 50% in annual car sales.
Earnings calendar
Monday
Before the market opens: Synchrony Financial (SYF), Bank of New York Mellon Corp. (BK), Bank of America (BAC), Charles Schwab (SCHW)
After the market closes: JB Hunt Transport Services (JBHT)
Tuesday
Before the opening of the market: Fifth Third Bancorp. (FITB), Johnson & Johnson (JNJ), Citizens Financial Group (CFG), Halliburton (HAL), Truist Financial Corp. (TFC), Hasbro (HAS), Lockheed Martin (LMT)
After the market closed: Netflix (NFLX), IBM (IBM), First Horizon Corp. (FHN)
Wednesday
Before the opening of the market: Anthem (ANTM), Nasdaq (NDAQ), Baker Hughes (BKR), Procter & Gamble (PG), Abbott Laboratories (ABT)
After the market closed: CSX Corp. (CSX), United Airlines (UAL), Crown Castle International (CCI), Alcoa Corp. (AA), Equifax (EFX), Steel Dynamics (STLD), Tesla (TSLA), Tenet Healthcare (THC), Kinder Morgan (KMI)
Thursday
Before the market opened: Xerox (XRX), AT&T (T), Dow Inc. (DOW), Las Vegas Sands (LVS), Spirit Airlines (SAVE), Blackstone (BX), Danaher (DHR), American Airlines (AAL), Pool Corp. (POOL), AutoNation (AN), Alaska Air Group (ALK), Tractor Supply Co. (TSCO), Philip Morris International (PM), Union Pacific (UNP),
After the market closes: Boston Beer Co. (SAM), Snap (SNAP)
Friday
Before the market opens: Verizon (VZ), Schlumberger (SLB), American Express (AXP), Kimberly-Clark (KMB)
