Earnings for the technology industry was launched. Before digging deep into the earnings report for the upcoming week, let’s take a moment to review recent Earnings per Share (EPS) results of some key companies such as Netflix Inc., Tesla, Johnson & Johnson.
Netflix Inc. exceeded expectations for Q1 earnings, with an EPS of $2.88 beating the estimated EPS of $2.83. However, this represents a decline from $3.53 in the previous year. This reflected the companies struggles with its recent policy changes regarding password sharing, which slowed down average revenues.
Tesla Inc. reported it earnings per share of $0.85 which was what the market forecasted. Conversely, the EPS dropped significantly compared to the last year Q1 which read a value of $3.22. This was due to Tesla cutting prices worldwide on its EV due to high competition, causing the Gross Margin to decrease from 29.1% to 19.3%, missing estimates of 21%.
Johnson & Johnson Non-GAAP calculated EPS resulted with a reading of $2.68 surpassing expectations of $2.50. Furthermore, increased sales were due to a rise in demand for the company’s pharmaceutical items.
Figure 1: EPS, finance.yahoo
Countdown for the Tech Giants
The upcoming week is heavily packed with news as Big Tech Giants such as Alphabet Inc., Microsoft, Meta and Amazon are scheduled to release their Q1 2023 EPS, consequently this will have a major effect on NASDAQ as it is mostly driven by the tech industry.
Other major U.S. stocks to keep an eye for are McDonalds, Coca-Cola, Visa Inc, and Texas Instruments Incorporated.
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