by Ian Harvey
January 27, 2020
These are the earnings predictions results for AXP, INTC, PG, JNJ and UAL
“Earnings Predictions” members made potential
profits of 660%.
EARNINGS PREDICTIONS RESULTS FOR WEEK BEGINNING JANUARY 20, 2020
|DATE||TRADE||GAIN/LOSS AFTER EARNINGS|
|January 21, 2020||UAL FEB 21 2020 90.000 CALLS||-30%|
|January 22, 2020||JNJ FEB 21 2020 150.000 CALL||15% P.P.|
|January 23, 2020||PG FEB 21 2020 130.000 CALL||-35%|
|January 23, 2020||INTC FEB 21 2020 60.000 CALL||475% P.P.|
|January 24, 2020||AXP FEB 21 2020 135.000 CALL||235% P.P.|
United reported late-Tuesday adjusted earnings per share that was above the consensus while revenue was in line with expectations.
Fourth-quarter net income of $641 million was up 50 percent year over year. Full-year 2019 net income was $3 billion, up 51 percent year over year.
In the post-earnings conference call with analysts early Wednesday, first-quarter adjusted EPS of 75 cents to $1.25, compared with the consensus as of Dec. 31 of 75 cents.
CEO Oscar Munoz on Wednesday characterized 2019 as “a banner year” for the Chicago-based carrier despite many uncertainties tied to the troubled Boeing 737 MAX plane.
The company said that United’s results would prove to be highest among all its principal rivals, include Delta Air Lines, American Airlines and Southwest Airlines.
For the full year, United posted operating revenue of $43.26 billion, net income of just under $3.01 billion and earnings per share of $11.58. The carrier's 2019 cargo revenue declined 4.7% to just under $1.18 billion. Cargo ton miles, a measure of cargo traffic, were down 1.4% in the quarter and 2.8% for the year.
United achieved its strong financial performance despite extra costs and lost capacity due to the grounding of the Boeing Co 737 MAX last March.
However, shares of United Airlines dropped 2.0% in afternoon trading Wednesday, to buck the gains in the airline sector, as uncertainty over the impact the coronavirus outbreak offset a fourth-quarter profit beat and upbeat guidance.
Earnings Predictions Results for.....
J&J fourth-quarter results were mixed as it beat estimates for earnings but missed the same for sales. Earnings came in at $1.88 per share, which beat the Consensus Estimate of $1.86. Earnings, however, declined 4.6% from the year-ago period.
Adjusted earnings exclude after-tax intangible amortization expense and some special items. Including these items, J&J reported fourth-quarter earnings of $1.50 per share, up 33.9% from the year-ago quarter.
Sales of the drug and consumer products giant came in at $20.75 billion, which missed the Consensus Estimate of $20.79 billion. Sales rose 1.7% from the year-ago quarter, reflecting an operational increase of 2.6%, which offset an unfavorable currency impact of 0.9%.
Its 2020 financial guidance was also quite lukewarm. J&J had said in the past that it expects its sales and earnings growth to accelerate in 2020, supported by above-market performance of its Pharmaceuticals unit as well as continued improvement in the Medical Devices segment. It also plans to improve the profitability of its Consumer unit while continuing to optimize its portfolio for competitive growth. J&J is also making rapid progress with its pipeline/line extensions with several pivotal data readouts and regulatory milestones expected in 2020. It gained FDA approval for two new drugs in 2019, Balversa and Spravato
The stock has returned 15.9% in the past year compared with an increase of 14.7% recorded by the industry.
Shares were down around 1.7% in pre-market trading. But, on the day, JNJ stock fell a fraction to $148.25.
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The Procter &
Gamble Company reported second-quarter fiscal 2020 results, wherein
earnings per share surpassed the Consensus Estimate. However, sales missed the
consensus mark. Nonetheless, earnings and sales improved on a year-over-year
basis. Moreover, the company raised its guidance for fiscal 2020.
The Cincinnati-based consumer products giant reported $18.2
billion in quarterly sales, a 5% increase over the previous year but short of the
$18.4 billion consensus compiled by analysts who follow the company.
P&G saw organic sales increases of 7% for the quarter in
the beauty category (Olay and Pantene) and the health unit (Vicks and Crest).
For the most recent quarter that ended Dec. 31, organic
sales rose 4% in the United States and 13% in Greater China – P&G's two
"The one area
that's under a little bit of pressure from a category standpoint is baby
care," Jon Moeller, P&G's chief financial officer and chief
operating officer, said during a conference call with reporters on Thursday.
Moeller said declines in China's birth rate are affecting
P&G's bottom line. In addition, the U.S. birth rate fell to a 32-year low
in 2018, according to the Centers for Disease Control and Prevention.
Despite strong bottom-line results, investors were
disappointed by lower-than-expected sales. Consequently, the stock dipped 2%
during the pre-market trading session.
Shares of Procter & Gamble have grown 34% in the past year, outperforming the industry’s 21.8% rally.
Earnings Predictions Results for.....
Intel Corp.’s data-center sales crushed Wall Street estimates in a Thursday report, pushing quarterly revenue atop the $20 billion mark for the first time, but the chip maker’s forecast reflected a conservative for the difficult-to-predict cloud market.
For the fourth quarter, Intel reported net income of $6.91 billion, or $1.58 a share, compared with $5.2 billion, or $1.12 a share, in the year-earlier period. Adjusted earnings were $1.52 a share. Revenue rose to $20.21 billion, passing the $20 billion mark for the first time, up from $18.66 billion in the year-earlier quarter.
Analysts had forecast earnings of $1.25 a share on revenue of $19.23 billion.
“Intel had a great Q4 in spite of increased competition and supply challenges,” said Patrick Moorhead, principal analyst at Moor Insights & Strategy. “The ‘data centric’ businesses carried the day with each business driving double digit growth, except for [field-programmable gate arrays]. Even PCs were up, which was a big surprise for me.”
The company said it expects adjusted earnings of $1.30 a
share on revenue of about $19 billion for the first quarter and $5 a share on
revenue of about $73.5 billion in 2020. Analysts had forecast earnings of $1.04
a share on revenue of $17.25 billion for the first quarter and $4.66 a share on
revenue of $72.41 billion for the year.
Intel shares rallied 8.1% to close at $68.47 Friday for their best one-day performance since Jan. 26, 2018, when stock rocketed 10.6%. On Friday, shares reached an intraday high of $69.29, putting the chip maker’s market valuation at $301.41 billion, but the stock price retreated over the session, leaving Intel with a market cap of $297.84 billion at the close.
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Earnings Predictions Results for.....
American Express narrowly beat fourth-quarter earnings estimates early Friday.
AXP reported fourth-quarter 2019 earnings of $2.03 per share, which surpassed the Consensus Estimate by 1.5% and were up 16.7% year over year.
Total revenues of $11.4 billion came in line with the Consensus Estimate and were up 9% year over year. This is the 10th straight quarter in which the company posted foreign exchange adjusted revenue growth of at least 8%. Increase in earnings was driven by a well-balanced mix of growth in fee, spend and lend revenues.
Total expenses of $8.4 billion increased 9% year over year, due to growth in rewards and other customer engagement costs driven by increased Card Member spending, and higher usage of card benefits and operating expenses.
CFRA analyst Chris Kuiper believes management is doing a good job, and that the firm's more affluent customer base insulates it from higher charge-off rates and delinquencies.
"We think AXP has demonstrated it is navigating the competitive landscape well with relatively strong spending by its customers. While the changing interest rate environment may crimp net interest margins, we think AXP is positioned better than peers with 75% of revenue from fees compared to peer's 20%," he said in a Jan. 18 research note.
The company continues to make investments to increase its share, scale and relevance. It has refreshed a number of its card products and co-brand portfolios globally. These have resulted in greater customer engagement and strong new card acquisitions. The company is also making good progress on digital front by making massive investments in technology.
Overall, the company’s consistent performance, along with continued investments in product innovation and growth opportunities, paves the path for long-term growth.
Shares were up 2.8% at $135.10 on the day. American Express stock is well clear of its 50-day moving average.
What Now after Earnings Predictions.....?
Also, read the article “Exiting Options Trades BEFORE or AFTER Earnings Reports Comparison!”
What will “Stock Options Made Easy” advise members to do?
What companies will be featured in next week's Earnings Predictions Results?
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An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!