A busy afternoon for Q1 earnings results after today's closing bell are taking headlines today: Netflix (NFLX - Free Report) and IBM (IBM - Free Report) , along with transportation giants United (UAL - Free Report) and CSX Corp. (CSX - Free Report) , have all reported Tuesday afternoon. Results overall are decidedly mixed.
Although Netflix outperformed expectations notably on its top and bottom lines -- 76 cents per share as compared with the Zacks consensus 57 cents (8 cents higher than the year-ago 64 cents per share) on $4.52 billion that outpaced the expected $4.49 billion -- weaker subscriber guidance sent shares tumbling directly following the earnings release. Netflix currently sees 5 million added subscribers total for Q2, whereas previously the company had expected nearly that amount from International alone.
Average Revenue per User (ARPU) dipped 2% in the quarter, while net additions outperformed expectations: 9.6 million versus 8.9 million forecast. The company noted it also experienced some "modest near-term" churn following price increases. As for the entry of Disney+ and other competitors to the streaming entertainment space, CEO Reed Hastings said they will not "materially affect" growth at Netflix. Shares had initially fallen 6+% on the news, but have buoyed somewhat since.
Zacks Rank #4 (Sell)-rated IBM posted better-than-expected earnings on weaker revenues in its Q1 report Tuesday afternoon: $2.25 per share was a 4-cent beat, and sales of $18.18 billion were beneath the $18.68 billion in the Zacks consensus. This marks the third straight quarter of revenue declines for Big Blue.
The company no longer reports a Strategic Imperatives segment, and its Cloud Cognitive space outperformed expectations. Analysts will be interested to hear about plans to integrate IBM's Red Hat acquisition. And full-year earnings guidance has not changed: it remains $13.90 per share.
United Airlines put up a big beat on its bottom line, $1.15 per share versus 94 cents expected, on revenues of $9.589 billion which just barely missed the $9.6 billion analysts had been looking for. But shares are up 2.75% after normal trading, perhaps due to these figures performing relatively well considering myriad headwinds in the quarter: a polar vortex, U.S. government shutdown and other issues. Cost per available seat mile has been guided up, from flat to 2% previously to +0.5% to 2.5% now.
CSX also outpaced expectations on the bottom line while coming in-line on the top: $1.02 per share bettered the 91 cents expected, on $3.01 billion which was exactly the Zacks consensus. Operating ratio improved in the quarter, with merchandise in-line with expectations but coal +7%. Shares are up 4% in after-hours trading. CSX has not missed an earnings estimate in at least 5 full years.
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