The 2024 Q2 earnings season is in full swing, with today’s results from the big banks kicking the period into a higher gear. Another period of positivity is expected, with the S&P 500 anticipated to post positive earnings growth once again.
Looking ahead to next week, investors should have their sights set on several key earnings reports, including those from Netflix NFLX, Taiwan Semiconductor TSM, and Johnson & Johnson JNJ. Let’s delve into what to expect from each company as they gear up to announce their quarterly performances.
Netflix
Streaming giant Netflix is slated to reveal its quarterly results on Thursday, July 18, after the market’s closure. Following the latest earnings disclosure, the company’s stock took a hit but has since rebounded impressively, currently hovering near record highs.
Critical metrics to watch in the upcoming release include subscriber numbers, although it’s essential to note that starting from 2025 Q1, Netflix will cease reporting quarterly membership figures.
During the last release, total subscribers stood at 269.6 million, marking a significant 16% year-over-year increase. Netflix has consistently surpassed subscriber addition projections over recent times, boasting four consecutive beats.
Impressive Growth Trajectory
Earnings and revenue projections have largely remained steady, with estimates pointing towards a 43% growth in earnings per share on 17% higher sales. The company’s profitability has shown improvement thanks to operational efficiencies, resulting in expanding margins in recent periods.
Taiwan Semiconductor
Taiwan Semiconductor (TSM) shares have soared over 80% amid the broader semiconductor sector boom in 2024, significantly outperforming the market. The surge in demand for AI chips has been a primary driver behind the semiconductor industry’s growth.
Optimistic Growth Expectations
Projections for the quarter had remained stagnant before recently ticking upward. The current estimate of $1.37 per share indicates a robust 20% surge from the previous year. Sales forecasts have also been positive, with an expected 5% rise to $20.2 billion, reflecting a 29% year-over-year increase.
Shareholder-Friendly Strategies
Taiwan Semiconductor announced a 10% dividend increase following its latest results, elevating the quarterly payout to $0.45 per share. The company’s dedication to enhancing shareholder returns has made it a favored choice among income-oriented investors seeking exposure to the tech and semiconductor sectors.
Johnson & Johnson
Consumer staple conglomerate Johnson & Johnson has seen its stock price remain relatively flat over the past three years, recording a marginal 4% decline. Despite this, the company has consistently delivered robust earnings, surpassing our EPS estimates in the last ten consecutive releases.
Steady Earnings Performance
Forecasts for the upcoming release have shown a slightly negative trend, with the Zacks Consensus EPS estimate of $2.71 down 1% since mid-April. Revenue expectations have remained stable, with an anticipated $22.4 billion suggesting a 12% decline from the previous year.
Wrapping Up
With the 2024 Q2 earnings season gaining momentum next week, keeping an eye on forthcoming reports from Netflix NFLX, Taiwan Semiconductor TSM, and Johnson & Johnson JNJ will be crucial for investors.
