Zacks Investment Ideas feature highlights: JPMorgan, Wells Fargo, Citigroup, Netflix and Tesla
For Immediate Release
Chicago, IL – April 18, 2023 – Today, Zacks Investment Ideas feature highlights JPMorgan JPM, Wells Fargo WFC, Citigroup C, Netflix NFLX and Tesla TSLA.
Q1 Earnings: Tesla, Netflix on Deck
Earnings season kicked off last week, with several big banks such as JPMorgan, Wells Fargo and Citigroup getting the party started. All three posted better-than-expected results, exceeding both earnings and revenue expectations.
This week, we have a full slate of quarterly reports, including those from market titans Netflix and Tesla. Below is a chart illustrating the year-to-date performance of both stocks, with the S&P 500 blended in as a benchmark.
As we can see, both stocks have outperformed the general market in 2023, indicating favorable momentum. Let's take a look at how both stack up heading into their quarterly releases.
Netflix
A central focus point of NFLX's quarterly results is Net Subscriber Additions, telling us if consumers continue to flock to the platform. The company's earnings release is scheduled for Tuesday, April 18th, after market close.
Net Subscriber Adds came in well above expectations in its latest release; Netflix reported Net Subscriber Adds of roughly 7.7 million, handily beating our consensus estimate of 4.5 million by nearly 70%.
In fact, it represented Netflix's third consecutive quarter of exceeding Net Subscriber Additions expectations, undoubtedly a major positive.
Surprise (%) - Net Subscriber Additions
The market cheered on the better-than-expected Subscriber Additions, with Netflix shares climbing nearly 9% the following trading session.
Now, for its upcoming release, the Zacks Consensus Estimate for Net Subscriber Additions sits at 3.7 million, reflecting a notable improvement to the year-ago quarter when the company lost roughly 200,000 subscribers.
Regarding the bottom line, the Zacks Consensus EPS Estimate of $2.81 indicates a roughly 20% Y/Y pullback within earnings, with the quarterly earnings estimate remaining unchanged over the last 60 days but up 3% since January of this year.
In addition, Netflix is forecasted to have generated roughly $8.2 billion in revenue throughout the period, implying growth of 4% compared to the year-ago quarter.
Tesla
We're all highly familiar with Tesla, the undisputed leader in EVs. Like Netflix, investors like to focus on an individual metric of Tesla – the company's EV deliveries. TSLA's earnings release is scheduled for April 19th, after market close.
On April 2nd, the company unveiled its production and delivery numbers; Tesla produced roughly 441,000 vehicles throughout the quarter, with total EV deliveries tallying approximately 422,800 and growing 36% Y/Y. As usual, the Model 3/Y represented the bulk (about 97%) of the deliveries, totaling 412,000.
The market didn't particularly react well to the results, with Tesla shares losing 6% in value the following trading day.
Currently, the Zacks Consensus EPS Estimate of $0.85 indicates a 20% year-over-year pullback within earnings, with the quarterly estimate down 1% over the last 60 days. Price cuts within the company's EVs have undoubtedly impacted analysts' views on Tesla's bottom line.
Tesla posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by roughly 9% and delivering a 2.5% revenue beat.
Bottom Line
With earnings season kicking into higher gear, investors will have plenty of quarterly results to sort through daily.
And soon, we'll hear from Netflix and Tesla. Both companies will reveal their results after market close, with Netflix scheduled for Tuesday, April 18th, whereas Tesla is scheduled for Wednesday, April 19th.
Investors will be focused on Netflix's subscriber additions, a metric that the company has consistently positively surprised on as of late. Regarding Tesla, investors will get a better view of how price cuts have affected margins.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Wells Fargo & Company (WFC) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
