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The upcoming week marks the beginning of earnings season, with a lineup of major companies set to announce their quarterly financial results, providing insights across various sectors.
Among the notable firms stepping into the spotlight are Bank of America (BAC), Johnson & Johnson (JNJ), Netflix (NFLX), Taiwan Semiconductor (TSM), Procter & Gamble (PG), UnitedHealth (UNH), Kinder Morgan (KMI), ASML (ASML), Goldman Sachs (GS), Nokia (NOK), Blackstone (BX), Abbott Labs (ABT), Morgan Stanley (MS), American Express (AXP), Schlumberger (SLB), Intuitive Surgical (ISRG), Crown Castle (CCI), United Airlines (UAL), U.S. Bancorp (USB), Alcoa (AA) and Prologis (PLD).
Below is a rundown of major quarterly updates anticipated in the week of April 15–19:
Monday, April 15
Goldman Sachs (GS)
Following a series of bank earnings reported at the end of last week, Goldman Sachs (GS) is set to release its Q1 results before the opening bell on Monday. Analysts expect a year-over-year decline in EPS and around 6% growth in revenue. Wall Street analysts maintain a Buy rating on the stock, while the Seeking Alpha Quant Rating system sees the stock as a Hold, pointing to valuation and profitability concerns.
In the month of March, CFRA upgraded Goldman to Buy, partly on green shoots in capital raising and M&A.
SA Investing Group Leader Envision Research recently downgraded the stock to Hold from previous Buy, citing several factors, driven by a near-term risk/reward analysis, with the current valuation seen as stretched compared to historical averages. Additionally, signs of profitability pressure and weak technical indicators suggest a sideways consolidation window in the near term. Based on these considerations, Envision Research believes that GS may not be able to provide the level of returns seen in the past few months.
Recently, proxy adviser Institutional Shareholder Services recommended to Goldman Sachs (GS) shareholders that the firm should split its chairman and CEO roles, which are currently both held by David Solomon.
- Consensus EPS Estimates: $8.64
- Consensus Revenue Estimates: $12.93B
- Earnings Insight: Goldman Sachs has beaten revenue expectations in 6 of the past 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, April 16
Bank of America (BAC)
Bank of America (BAC) is all set to announce its Q1 earnings before the market opens on Tuesday, alongside Morgan Stanley (MS). The report comes only days after J.P. Morgan (JPM), Citigroup (C), Blackrock (BLK) and Wells Fargo (WFC) reported better-than-expected Q1 results.
SA author The Alpha Sieve believes that while the higher-for-longer narrative should benefit BAC due to its relatively high asset sensitivity, the stock’s forward valuations are no longer attractive. The author also does not find the risk-reward on the long-term charts appealing and suggests that the stock may not benefit from rotational interest.
On the other hand, SA Analyst Noah’s Arc Capital Management expects that Q1 results “will shed a favorable light on Bank of America’s ability to sustain strong NII revenue 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, as compared to the consensus Buy rating from Wall Street analysts.
- Consensus EPS Estimates: $0.77
- Consensus Revenue Estimates: $25.39B
- Earnings Insight: The bank has exceeded EPS and revenue expectations in 6 of the past 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), J.B. Hunt Transport Services (JBHT), Ontrak (OTRK), and more.
Wednesday, April 17
Abbott Laboratories (ABT)
Healthcare conglomerate Abbott Laboratories (ABT) is set to release its Q1 financial data on Wednesday before the bell. The company recently obtained 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 within 15 minutes.
Abbott receives a Hold rating from Seeking Alpha’s Quant Rating System, in contrast to the consensus Buy rating from Wall Street analysts.
SA author Kody’s Dividend views Abbott as a compelling investment opportunity due to its improving operating fundamentals, strong free cash flow supporting potential dividend growth, and an admirable balance sheet. The stock’s slight undervaluation enhances Kody’s optimism about the stock.
- Consensus EPS Estimates: $0.95
- Consensus Revenue Estimates: $9.88B
- Earnings Insight: The company has exceeded EPS and revenue expectations in straight 8 quarters.
Also reporting: Kinder Morgan (KMI), ASML Holding N.V. (ASML), Alcoa Corporation (AA), Crown Castle (CCI), Las Vegas Sands (LVS), U.S. Bancorp (USB), CSX Corporation (CSX), Prologis (PLD), Discover Financial Services (DFS), The Travelers Companies (TRV), Citizens Financial Group (CFG) and more.
Thursday, April 18
Netflix (NFLX)
Streaming giant Netflix (NFLX) is scheduled to report its Q1 financial results on Thursday, after the closing bell. The stock has surged more than 86% over a period of 12 months and is up almost 30% on a YTD basis, driven by successful strategies like password-sharing crackdowns and the introduction of ad-enabled tiers.
The Seeking Alpha Quant Rating system maintains a Hold rating on the stock in contrast to Wall Street analysts’ Buy rating.
SA contributor The Beginner Investor has downgraded Netflix from a Strong buy to a Buy rating. 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 password-sharing crackdown and the potential for an ad tier.
- Consensus EPS Estimates: $4.53
- Consensus Revenue Estimates: $9.28B
- Earnings Insight: Netflix has risen above EPS estimates in 6 of the past 8 quarters while exceeding revenue expectations in just 3 of those reports.
Also reporting: Nokia Oyj (NOK), Taiwan Semiconductor Manufacturing Company Limited (TSM), Intuitive Surgical (ISRG), Alaska Air Group (ALK), D.R. 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, April 19
Schlumberger Limited (SLB)
The world’s largest oilfield service company, Schlumberger (SLB), is slated to deliver its Q1 earnings print in the premarket hours on Friday. In the previous quarter, the company exceeded expectations, driven by strong growth in its international business. For Q1, Schlumberger has guided revenue growth in the low teens year-over-year and EBITDA growth in the mid-teens, with expectations of a seasonal activity bounce in Q2 and further acceleration of growth in the second half of the year.
The company’s shares have attracted 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.
With regards to Schlumberger’s (SLB) recent acquisition of ChampionX in an all-stock deal valued at approximately $7.8B, SA author The Energy Realist believes that most of the acquired ChampionX business is robust to capital expenditure downturns. 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: $8.70B
- Earnings Insight: The company has beaten EPS estimates in 8 straight quarters and revenue estimates in 6 of those reports.
Also reporting: The Procter & Gamble Company (PG), Schlumberger Limited (SLB), American Express Company (AXP), ARMOUR Residential REIT, Inc. (ARR), Huntington Bancshares Incorporated (HBAN), Regions Financial Corporation (RF), Fifth Third Bancorp (FITB), Wipro Limited (WIT) and more.