Traders having a burning desire to win will be filled with excitement as the most awaited period of the year is finally here. The quarterly earnings pointed the tip of its nose and many companies already published their reports, while others are on their way.
Every year, the quarterly earnings season which lasts approximately one month, generates a pool of opportunities for traders thus helping them to push the boundaries of success. This month is particular as it is the period of the year whereby public companies release the quarter reports of their earnings and profits. This event impacts on the performance of each company's shares. Therefore if you make the most of these reports, you will reap the many benefits they offer. Below you will find an overview of the stocks in the spotlight and also the ones you should keep an eye on.
Netflix is an American company providing a multitude of ‘on demand' movies and television shows. The company opened the ball with an outstanding fourth quarter performance on the 19th of January. Accordingly, the media streaming company displayed 5.59 million additional subscribers compared to its initial forecast of 5.15 million subscribers made during the previous quarter release thus bringing its shares up by 7 percent at $115.42 per share. This gain is partly due to the new service of on-demand video streaming the company launched in approximately 130 countries excluding China.
Netflix does not intend to rest on its achievements and is forecasting a continuous ascension. Besides, the company targets approximately 6 million additional subscribers for its first quarter release in March. Meanwhile, the company is striving hard to improve its services by providing more facilities such as additional languages and content in order to cater for the requirements of its diversified users. In addition, the multinational firm is working on ways to implement its services in China as it is strongly determined to add this country to its list of conquests.
The 20th of January, Goldman Sachs published its fourth quarter report thus showing that it was an additional victim of the slump of crude oil prices. Accordingly, the report highlighted that the investment banking firm's net revenues in Currency, Fixed Income and Commodities Client Execution dropped by 8 percent and reached $1.12 billion. This poor performance is characterized by the almost non-existent net revenues in commodities the financial institution experienced.
Even though the report is soiled by a bleak spot regarding the commodities and fixed income segment, the overall performance of the company is satisfactory relatively to what was expected. Nevertheless, the company reported net earnings of $765 million which is well under the $1.43 billion line attained in the previous quarter. Furthermore, the diluted earnings per common share plummeted to $1.27 leaving behind the $2.90 per share registered on the third quarter to oblivion. However, the banking institution is confident that the best is yet to come with the contribution of its global client franchise.
Watch out for this!
As usual Apple inspires admiration with a fourth quarter report displaying a quarterly revenue of $51.5 billion compared to the previous quarter report of $49.6 billion. In only three months, the technology company edged its quarterly net profit up to $11.1 billion which is a slight improvement compared to the third quarter net profit of $10.7 billion. This spectacular performance resulted from the fact that the company launched its most coveted brand new iPhone 6S and 6S plus on the 25th of September, which is only a day before the fourth quarter ended. Furthermore, other products such as the Mac and the Apple watch also contributed to this huge success. Accordingly, the report stipulated that 62 percent of its quarterly revenue was attributed only to its international sales.
However, in January, the American multinational had to decrease the production of its new iPhone by 30 percent due to piled up inventories. However, this slight reduction in production did not thwart the forecasts Apple made to reach the barem of $75 billion it targeted in terms of revenues. The technology firm released its first quarter report on the 26th of January and it was quite terrific. Besides achieving the $75 billion line goal, the company went beyond and displayed a quarterly revenue of $75.9 billion. It is a milestone in the company's history as it the biggest quarter it ever knew. So far, it can be said that 2016 has been very favorable for Apple in terms of revenues. I am eager to know what's in store for the rest of the year, what about you?
Yahoo Inc's situation is alarming according to the data recorded for its third quarter earnings. The American multinational displayed a GAAP revenue of $1,226 million which is lower than the $1.243 million GAAP revenue reported during its second quarter. However, the revenue recorded for the third quarter earnings season was a pleasant surprise as it met Yahoo's forecasts. Furthermore, the company managed to level up its net earnings to $76 million which is much better than the $22 million loss incurred during the previous quarter.
Moreover, during the end of the year, Yahoo was planning to sell its Internet business to the Chinese giant Alibaba Group Holding Ltd. The announcement of the news positively impacted on the technology firm, pulling up its shares by 6 percent. Unfortunately, some days after, there was a reversal of situation. Yahoo flatly refused the deal thus bringing the shares down by 1.3 percent. The real repercussions of this rejection will be more visible on the 2nd of February as the company's last quarterly earnings report for 2015 will be released on this date. Until then, Yahoo Inc is planning to refuse all the future sales propositions pertaining to its Internet business.
Don't miss the boat
Earnings season has the potential to change your game in many ways, with the already released reports setting the pace. These reports will accelerate your profit process, so don't hesitate to take the bull by the horns by taking advantage of this flourishing month. This year promises to be full of surprises!