Earnings week ahead: Netflix, Goldman Sachs, United Airlines and more

Jan. 13, 2023 1:39 PM ETNetflix, Inc. (NFLX), GS, UAL, SLBKMI, SCHW, BA, PG, ERIC, AA, LUV, MS, RF, STT, PNC, JBHT, EDU, TFC, IBKR, DAL, PPG, DFS, PDT, BURBY, TAL, ALLY, AAL, CFG, SIBy: Kevin P. Curran, SA News Editor1 Comment

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A holiday shortened week is still jam-packed with earnings reports, with numerous big-name players ready to announce their quarterly figures.

The week is set to continue a busy time for financials, with results from Morgan Stanley (MS) and Goldman Sachs (NYSE:GS) coming out close on the heels of Friday’s flow of reports from other major banks. A number of regional banks are also set to post results, offering a fuller picture of the banking industry in the US heading into 2023.

Joining the slew of financial reports, results are slated to come from industrial names like Alcoa (AA), United Airlines (NASDAQ:UAL), and PPG industries (PPG), as well as energy giants Kinder Morgan (KMI) and Schlumberger (NYSE:SLB).

The week will also feature consumer-facing companies Procter & Gamble (PG) and Burberry Group (OTCPK:BURBY). Additionally, Netflix’s (NASDAQ:NFLX) report will likely be very closely watched following the stock’s nearly 100% rebound from its lowest levels last year.

Below is a curated list of reports due in the week of January 16 to 20:

Monday, January 16

US markets closed for Martin Luther King Day

Tuesday, January 17

Goldman Sachs (GS)

Following up on a string of bank earnings that were announced at the close of the previous week, Goldman Sachs (GS) joins Morgan Stanley (MS) in posting additional big bank earnings before the bell on Tuesday. GS has begun 2023 by tightening its belt, announcing thousands of job cuts amid the expectation of macroeconomic uncertainty this year. Indeed, Wolfe Research cited economic uncertainty as a reason to downgrade the stock to Hold ahead of the results.

That said, analysts remain broadly bullish, with a consensus Buy rating reflected in Seeking Alpha surveys. "I, like many others, believe there will be a recession, but I do not believe it will be severe," Odeon Capital analyst Dick Bove wrote ahead of the report. "The time has come to focus on the fact that there has been a cycle change and this change definitely benefits banking."

Consensus EPS Estimates: $5.77
Consensus Revenue Estimates: $10.91B
Earnings Insight: Goldman Sachs has beaten revenue expectations in 8 consecutive quarters, missing EPS estimates only once in that span.

United Airlines (UAL)

United Airlines (UAL) is next up for airline earnings after the bell on Tuesday, following a mixed report from key competitor Delta Air Lines (DAL) on Friday. Shares of the Chicago-based airline have risen over 50% since the start of Q4 2022.

The airline has told customers that it has been able to avoid the kinds of operation issues that have plagued its peer Southwest Airlines (LUV) and recently announced an agreement with a major union. In the week ahead of the results, a bullish pre-announcement from American Airlines (AAL) also aided optimism in the airline industry.

Elsewhere, UAL announced a record-setting purchase agreement with Boeing (BA) in December. Under the terms, the carrier could buy up to 200 787 Dreamliners as it expands its capacity and retires older jets.

Consensus EPS Estimates: $2.12
Consensus Revenue Estimates: $12.24B
Earnings Insight: United Airlines has beaten EPS estimates in 3 of the past 8 quarters, exceeding revenue expectations 5 times in that span.

Silvergate Capital (SI)

Beleaguered crypto lender Silvergate Capital (SI) is due to post its fourth quarter results before the bell on Tuesday. The company recently announced plans to cut its headcount by around 40% -- a move meant to reduce costs amid a bear market for crypto.

The company also noted that it took a $196M impairment charge as customers withdrew deposits in Q4, leading to a 40% drop for shares on January 4. The company said that FTX held sizable deposits prior to its collapse, an event that helped spark withdrawals, according to the company.

Consensus EPS Estimates: $0.72
Consensus Revenue Estimates: $ -778.04M
Earnings Insight: Silvergate has beaten EPS and revenue expectations in 6 of the past 8 quarters

Also reporting: Morgan Stanley (MS), New Oriental Education (EDU), Citizens Financial Group (CFG), TAL Education Group (TAL), and Interactive Brokers (IBKR)

Wednesday, January 18

Alcoa (AA)

Aluminum industry player Alcoa (AA) is due to post its fourth quarter results after the bell on Wednesday. Shares of the Pittsburgh-based company have surged over 50% since the close of the third quarter, aided by China’s reopening.

Despite the share-price run, EPS and revenue expectations for Q4 have been revised downward 9 and 6 times in the past 90 days, per Seeking Alpha surveys. Elsewhere, the company outlined an executive restructuring shortly before the expected earnings announcement.

Consensus EPS Estimates: $-0.58
Consensus Revenue Estimates: $2.67B
Earnings Insight: Alcoa has beaten EPS estimates in 7 of the past 8 quarters, missing revenue expectations twice in that span.

Also reporting: Charles Schwab (SCHW), JB Hunt Transport Services (JBHT), Prologis (PDT), PNC Financial (PNC), Burberry Group (OTCPK:BURBY), Kinder Morgan (KMI), and Discover (DFS)

Thursday, January 19

Procter & Gamble (PG)

Procter & Gamble (PG) is due to announce its fiscal Q2 earnings update prior to Thursday’s market open. Shares of the consumer staples leader outperformed in 2022, alongside much of its defensively minded consumer defensive peers. The stock was also cited as a favorite among hedge funds by Goldman Sachs. The consensus analyst rating on the stock remains a Buy into 2023, according to Seeking Alpha data.

Consensus EPS Estimates: $1.59
Consensus Revenue Estimates: $20.69B
Earnings Insight: Procter & Gamble has beaten revenue expectations in 8 consecutive quarters, missing EPS estimates only once in that span.

Netflix (NFLX)

Netflix (NFLX) is set to post its Q4 earnings update after the bell on Thursday. Shares of the streaming leader have leapt to a nearly 100% gain after a steep drop that followed its Q1 earnings results in late April. The analyst consensus recently turned back to a Buy in the fourth calendar quarter, according to Seeking Alpha surveys.

Wells Fargo was one such upgrade, with the bank’s analysts forecasting that the new advertising tier. The firm sees the altered pricing structure boosting revenue by $300M in 2023, $1.6B in 2024 and $3.4B in 2025. "Our conclusion is that 2022 reflected a dip in content share, a lack of original hits for a time and the digestion of the COVID sub [comparison], none of which should be read forward,” the team stated in December.

Elsewhere, the company stated plans to invest $850M in a New Jersey production hub and outlined executive compensation structures.

Consensus EPS Estimates: $0.55
Consensus Revenue Estimates: $7.84B
Earnings Insight: Netflix has beaten EPS and revenue estimates in 6 of the past 8 quarters.

Also reporting: Truist Financial (TFC) and PPG Industries (PPG)

Friday, January 20

Schlumberger (SLB)

The world’s largest oilfield service company, Schlumberger (SLB), is due to announce its earnings in premarket hours on Friday. Shares of the Texas-based company have surged about 60% in the past year, rising sharply alongside much of the energy sector.

Seeking Alpha surveys show that revenue and EPS estimates have been revised upward 19 and 15 times, respectively, in the past 90 days. The Wall Street consensus rating on the stock remains a Buy, but Seeking Alpha’s Quant team has held steady with a Hold rating due to valuation concerns.

Consensus EPS Estimates: $0.68
Consensus Revenue Estimates: $7.79B
Earnings Insight: Schlumberger has beaten EPS estimates in 6 of the past 8 quarters, missing revenue estimates only once in that span.

Also reporting: Ally Financial (ALLY), State Street (STT), Regions Financial (RF), and Ericsson (ERIC)