Below we highlight the three most interesting earnings releases next week. JPMorgan Chase
reports Q4 earnings on Tuesday at 12:00 GMT with analysts expecting EPS $2.21 up 28% from last year as the effects of the tax reform are still in place. Revenue is expected to come in at $27bn, up 6% y/y. While the earnings release is likely not be a shocker as we expect JPMorgan to deliver another solid quarter without any hiccups, the earnings release is still an important beacon for the rest of the financial industry. Any details on credit quality in Europe could be of great importance. Netflix
reports Q4 earnings on Thursday after the close. Analysts are expecting EPS $0.37, down 22% y/y and revenue at $4.2bn, up 28% y/y. In Q3 Netflix delivered a solid quarter but the competition is heating up from Amazon and more importantly from Disney entering the video streaming business this year with what is probably the most valuable video content library in the world. Netflix has saturated the US market and the company is now focusing on its international expansion with intense activity in 2019 in Europe and an expected higher spend more on original content. China is already lost ground for Netflix and the company seems to also be losing the game already in India to Hotstar (has Star India / Fox / Disney as parents) due to pricing difference. The potential big problem for Netflix shareholders is that many emerging markets are not blue oceans for Netflix and thus global dominance may not after all be the eventual outcome for Netflix. TSMC
reports preliminary Q4 earnings on Thursday with analysts expecting revenue at TWD 288bn, up only 4% y/y. The company had a tough ending to 2018 due to weaker than estimated demand for Apple’s iPhone. Growth in 2019 will come from its 7nm product driven customers such as Apple, Hisilicon, Qualcomm and AMD. In products outside 7nm we expect weakness as the industry has slowed down, but if China can kick start a rebound in its economy then TSMC could see a surprisingly positive 2019.
The table below shows the most important earnings releases ranked on companies’ market value.