JPM, NFLX kick off the reporting season
The earnings season kicks into high gear this week, at a time when investors may be starving for corporate guidance. There are 27 S & P 500 companies set to report, including banking giant such as JPMorgan Chase and Goldman Sachs, as well as Netflix and Johnson & Johnson. These reports come in the middle of a two-week ceasefire between the U.S. and Iran, as the two countries try to reach an end to the war in the Middle East. Despite the conflict, analysts still expect the earnings season to be strong. FactSet data shows S & P 500 first-quarter profits are expected to have grown 13% from the year-earlier period. That would mark the sixth straight quarter of double-digit profit expansion for the benchmark. To be sure, Wall Street will also watch for clues and guidance on how companies are navigating headwinds stemming from the war, such as higher energy prices. All times ET. Monday Goldman Sachs is set to report earnings in the premarket. A conference call is also scheduled for 9:30 a.m. Last quarter: GS topped earnings estimates thanks to strong output from its equites trading, asset and wealth management units. This quarter: The investment bank is forecast to report double-digit earnings and revenue growth from the year-earlier period, LSEG data shows. What CNBC is watching: Banking reporter Hugh Son will zero in on whether expected standout equities trading and a still-healthy M & A rebound can offset a likely war-driven late-quarter slowdown in dealmaking. What history shows: Goldman Sachs’ bottom line beats profit expectations 87% of the time, according to Bespoke Investment Group. Shares have also risen after four of the last five releases. Tuesday Johnson & Johnson is set to report earnings before the bell, followed by a conference call at 8:30 a.m. Last quarter: JNJ earnings topped expectations along with the company’s 2026 guidance . This quarter: The pharma giant’s earnings per share are expected to have fallen slightly year over year, according to LSEG. What to watch: Johnson & Johnson comes into this week’s report with momentum on its side. Year to date, shares are up 15 % , while the S & P 500 is about flat. Can these numbers give the stock another boost? Or will investors pare positions following the release? What history shows: J & J tops earnings expectations a whopping 95% of the time, per Bespoke. To be sure, the stock averages just a 0.3% advance on earnings days. JPMorgan Chase is set to report earnings before the open. A call with management will then take place at 8:30 a.m. Last quarter: JPM earnings topped estimates thanks to strong trading revenue . This quarter: Analysts polled by LSEG expect earnings and revenue growth of around 7%. What CNBC is watching: Hugh Son will focus on the bank’s ability to pair broad-based strength in trading, investment banking and net interest income with stable credit, while watching out for any early signs of consumer softening or increased loan loss provisioning as Jamie Dimon tends to be more cautious than other CEOs. What history shows: JPMorgan Chase earnings beat expectations 82% of the time, according to Bespoke. However, the stock fell after the last three releases. Wells Fargo is set to report earnings in the premarket, with a call slated for 10 a.m. Last quarter: WFC reported mixed fourth-quarter results, sending shares down more than 4% on the day. This quarter: Wells Fargo is expected to post earnings growth of more than 10% from the year-earlier period, per LSEG. What to watch: Bank of America analyst Ebrahim Poonawala thinks this report could give Wells Fargo a much-needed boost. “The stock appears washed out,” he wrote in a note April 6. “At current valuations, risk/reward screens particularly compelling as fewer rate cuts could boost [net interest income], significant self-help potential on expenses leverage (consumer bank) and capital return.” Shares are down around 8% year to date. What history shows: Wells Fargo shares have struggled on earnings days recently, falling after three of the last four releases. Citigroup is set to report earnings ahead of the opening bell. Management will also hold a call at 11 a.m. Last quarter: C earnings beat estimates thanks to strong net interest income and a smaller loan loss provision. This quarter: Citigroup’s bottom line is forecast to have popped more than 30%, according to LSEG. What to watch: Barclays analyst Jason Goldberg raised his first-quarter earnings estimates for Citigroup earlier this month, noting the company’s investment banking and trading divisions should be strong catalysts for the bank. What history shows: Citigroup shares have risen in four of the past five earnings days. Wednesday Bank of America is set to report earnings before the bell. A call with analysts and management is also scheduled for 8:30 a.m. Last quarter: Strong net interest income and equities trading drove BAC to an earnings beat . This quarter: Analysts expect the bank to report about 10% earnings growth from the year-earlier period, per LSEG. What to watch: HSBC upgraded Bank of America shares to buy in late March, with analyst Saul Martinez noting: “fixed asset repricing, better-than-peer balance sheet growth, and capital optimization should allow for mid-teen EPS growth and 320bp of [return on tangible common equity] expansion from 2025-2028, assuming the economic backdrop doesn’t worsen materially.” ROTCE is a measure used to evaluate a company’s profitability. What history shows: Data from Bespoke shows Bank of America earnings beat expectations 81% of the time. To be sure, the stock on average falls slightly on earnings days. Morgan Stanley is set to report earnings in the premarket. Corporate leadership will then hold a call at 9:30 a.m. Last quarter: MS topped earnings expectations thanks to its wealth management division . This quarter: The banking giant’s bottom line is forecast to have grown roughly 15% year on year, per LSEG. What CNBC is watching: Hugh Son will be watching for strong trading and wealth activity to carry results, while gauging how market volatility and geopolitical shocks are stretching deal timelines and fee growth. What history shows: Bespoke data shows Morgan Stanley earnings have beaten expectations in every quarter since early 2023. Thursday Netflix is set to report earnings after the close. A call with management is also scheduled for 4:45 p.m. Last quarter: NFLX posted a narrow earnings beat and reported global subscribers totaling 325 million . This quarter: Analysts polled by LSEG expect the streaming giant to post year-on-year earnings growth of around 15%. What to watch: Goldman is bullish on Netflix heading into the report, upgrading the stock to buy from neutral. “We see NFLX focused on a strategic roadmap around allocating capital toward both a) continuing to lead the broader media industry in content acquisition & development (with an increasing mix allocated to live entertainment, creator/user economy content and gaming) and b) the scope for outsized multi-year capital returns to shareholders (including the ~$2.8b merger termination fee received from PSKY),” analyst Eric Sheridan wrote. What history shows: Netflix shares fell after the company’s last three earnings releases, including a 10% drop on the back of its third-quarter figures.
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