7 earnings reports for viewing in the week of January 17th

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Earnings season in the fourth quarter is underway and expectations are high. Data from FactSet shows that companies listed on S&P 500 the index is expected to generate an average 21.7% year-on-year increase in earnings per share in the fourth quarter of 2021. If accurate, growth would be the fourth consecutive quarter where corporate profits grew by more than 20%. A healthy amount of positive earnings reports will help keep the stock market alive even with looming interest rate hikes.

The earnings season kicked off today (January 14) with four major Americans financial institutions publishing earnings reports. In the coming week, the remaining U.S. banks will release their quarterly figures before ending the week with the start of big earnings in technology and airlines.

Here are seven influential stocks that are widely owned, with quarterly earnings reports for the week of January 17th.

  • Charles Schwab (NYSE:SCHW)
  • Goldman Sachs (NYSE:GS)
  • Bank of America (NYSE:BAC)
  • Morgan Stanley (NYSE:MRS)
  • USA Bancorp (NYSE:USB)
  • Netflix (NASDAQ:NFLX)
  • American Airlines (NASDAQ:AAL)

7 earnings reports to be seen in the week of January 17: Charles Schwab (SCHW)

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The week begins with figures for the fourth quarter of financial services giant Charles Schwab, whose share price has been burning recently.

SCHW shares have risen nearly 20% to $ 94 a share in the past month, and have now gained 31% in the last six months. The increase was driven by general growth in bank and financial stocks as higher interest rates approached, as well as strong earnings throughout 2021. For the third quarter, Charles Schwab forecast $ 4.6 billion in revenue and a record $ 1.5 billion in net profit, up 119% from a year earlier. Such figures attract attention.

Through the first nine months in 2021, Charles Schwab’s revenue was $ 13.8 billion, up 84% from the previous year, along with $ 4.3 billion in net profit, up 98% from the same period in 2020. According to the latest count, Charles Schwab managed $ 7.6 trillion in customer assets, up from $ 6.7 trillion at the beginning of last year. Can a Westlack, Texas-based company end such an extremely strong year?

Analysts think so. It’s Wall Street calling for the financial company reports earnings per share (EPS) of $ 0.87 on revenue of $ 4.77 billion for the fourth quarter. Anything better than that, and the launch of SCHW shares could be accelerated.

Goldman Sachs (GS)

The Goldman Sachs (GS) logo is displayed on the smartphone in front of a multicolored background.

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Leading investment bank Goldman Sachs comes from a record year for deals with the highest value of mergers and acquisitions (M&A) and initial public offerings (IPOs).

IPOs around the world were raised last year by a a record $ 594 billion, according to the Reuters. And Goldman Sachs once again topped the world rankings of business consultants. However, the success of Goldman Sachs was not reflected in the share price, which is not in step with peers. Over the past six months, GM shares have gained only 5%, including 2% progress in the last month. And just to lose all those modest profits at the start of today’s trading.

The stock of reputable Wall Street Bank is now trading at just under $ 376 per share, 12% below its 52-week high.

A strong indicator in the fourth quarter could be the catalyst needed to raise GS stocks above $ 400 a share, a level it has been trying to stay above since early November.

They are analysts Forecasting EPS in the fourth quarter of $ 11.77 and revenue of $ 12 billion, up 2.6% from a year earlier. Investors will rate positively at each step up. However, it should be noted that shares of Goldman Sachs it looks cheap currently with a price-to-earnings (P / E) ratio of 6.21, which is low compared to the average P / E ratio for shares listed on the S&P 500 index of 15.96. The average target share price is currently $ 462.50, an increase of 23% from current levels.

7 earnings reports to be seen in the week of January 17: Bank of America (BAC)

shares of a US bank

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Bank of America reports profits in the fourth quarter on Jan. 19, and investors will look for evidence that the second-largest financial institution in the U.S. is emerging from a global pandemic in a strong position.

So far, all indications are that Bank of America v a better place today as before the Covid-19 pandemic. The average current account balance with the lender is 40% higher than in 2019 before Covid-19; its digital sales, such as online loans, are 33% higher than before the pandemic; however, the market share of investment banking rose to 6.9%, which is more than before the pandemic.

Although its growth has been impressive, Bank of America is in a position to perform even better than the Federal Reserve raises interest rates during this year to cool inflation, which reached 7% in December, the highest in 40 years. The lender estimated that raising the interest rate yield curve by 100 basis points would provide it with $ 7.2 billion in additional net interest income annually. Higher rates and further growth could help raise BAC stocks. The stock price has gained 9% in the last month, as the Fed has made it clear that interest rates are rising. For its results in the fourth quarter, Wall Street expects Bank of America will report earnings per share of $ 0.76 on revenue of $ 22.31 billion.

Morgan Stanley (MS)

The Morgan Stanley logo is displayed on the side of the building.

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Another reputable investment bank, Morgan Stanley, is reporting profits next week and like Goldman Sachs is coming out of a strong year of global business. The company is nicely rewarding its staff for the results of 2021, as the media reports that Morgan Stanley intends to increase annual bonuses by 20% setting the tone on Wall Street.

MS shares have been relatively strong in the last six months, rising 5% to the current price of $ 98 per share. For the fourth quarter, analysts forecast Morgan Stanley to post earnings per share of $ 39.33 on revenue of $ 2.99 billion.

In the previous third quarter Morgan Stanley beat Wall Street ratings in all areas of strong stock trading and investment banking performance. The company continues to operate the world’s largest stock trading office. However, there were some concerns about Morgan Stanley’s bond trading unit, which performed worse in the third quarter, with revenue of $ 1.68 billion, which is below the expected $ 2 billion. Analysts will break down fourth-quarter results to determine how Morgan Stanley is doing asset management. A key priority for CEO James Gorman, Morgan Stanley has built his asset management offering into one of the largest in the world with a series of acquisitions over the past two years.

7 earnings reports to watch in the week of January 17: US Bancorp (USB)

The US Bancorp logo is displayed on the side of the building.

Source: Michael Vi / Shutterstock.com

The Minneapolis-based US Bancorp is the fifth largest banking institution in America with more than $ 550 billion in assets. Like other banks, USB shares have been on the rise recently, rising 12% to $ 63.43 per share over the past 30 days. USB stock has increased by 27% in the last 12 months.

The bank’s earnings over the past year are a two-story story. In the third quarter US Bancorp’s payment service it increased by 3% as consumers spend more as we emerge from the pandemic, while the general ledger banking page fell by 13% compared to the same quarter last year.

This year, US Bancorp should also be a beneficiary of higher interest rates.

Also this year, US Bancorp favors the integration of its payment and commercial banking operations, as 70% of the bank’s commercial banking customers do not currently have one of its payment products. In addition, the US Bancorp v extraction process US banking department Mitsubishi UFJ Financial Group (NYSE:MUFG), a deal that gives US Bancorp an additional 190,000 commercial banking clients and a greater presence in California, the most populous country in the union. As for analysts, they are looking for U.S. Bancorp to report earnings per share of $ 1.1 with revenue of $ 5.75 billion when it announces earnings on Jan. 19.

Netflix (NFLX)

Where does the Netflix streaming giant go from here?

This question is being asked by many analysts before the company releases its latest issues on January 20th. Many are upset about the slowdown in growth stemming from the pandemic, and when Netflix is ​​facing an onslaught of competition that is only intensifying. In fact, the number of subscribers is what moves NFLX shares more than any other metric.

Research firm MoffettNathanson recently lowered its Netflix price target by $ 5 to $ 460 per share and maintained a “neutral” share price rating. Concerns seem to be affecting the mood around Netflix, whose shares have fallen 15% to $ 516.55 a share over the past month.

Netflix will undoubtedly strive to show that popular movies like “Don’t Look Up” and international blockbusters like the “Squid Game” series attracted more subscribers in the fourth quarter.

Any sign of a slowdown in the company’s subscriptions is likely to lower the share price. And to be honest, Netflix is ​​facing some difficult to compare after adding 4.4 million new subscribers in the third quarter of 2021 for a total of 214 million paid global subscriptions, exceeding the company’s target of 3.5 million in the third quarter.

Wall Street is looking Let Netflix announce EPS of $ 0.82 with revenue of $ 7.71 billion when it reports next week.

7 earnings reports for viewing in the week of January 17: American Airlines (AAL)

American Airlines plane on ramp at Chicago Airport.

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Shares of the world’s largest airline are rising ahead of its January 20 gains.

As of this writing, AAL shares rose 5% in just one trading session to just under $ 20 per share.

Competitive airline news Delta (NYSE:DAL), reported better-than-expected earnings (the first airline to report figures in the fourth quarter) raised the sector as a whole. reports Delta that it earned $ 0.22 per share in the fourth quarter with revenue of $ 9.47 billion. This was much better than the unanimous estimate of $ 0.14 EPS in sales of $ 9.2 billion. Delta attributed better-than-expected results to strong bookings during the November and December holidays.

American Airlines is also expected to be able to produce strong press in the fourth quarter, especially given its international exposure (traveling to more foreign destinations than any other carrier) and as demand for travel continues to grow. Of course, the omicron version of Covid-19 could hamper American Airlines earnings, but investors seem willing to look beyond the pandemic when it comes to the aviation sector. In the last month, the AAL share has risen 9% higher. Analysts predict that American Airlines will report an EPS loss of $ -1.58 billion in revenue of $ 9.33 billion in the fourth quarter.

On the day of the publication of Joel Baglole held a long position in the MS. The opinions expressed in this article are the opinions of the writer who are the subject InvestorPlace.com Guidelines for publication.

Joel Baglole has been a business journalist for 20 years. He spent five years as a personal reporter for The Wall Street Journal, and also wrote for The Washington Post and Toronto Star, and for financial sites such as The Motley Fool and Investopedia.

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