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The Zacks Analyst Blog Highlights: Netflix, IBM, United and CSX
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For Immediate Release
Chicago, IL –April 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix (NFLX - Free Report) , IBM (IBM - Free Report) , United (UAL - Free Report) and CSX Corp. (CSX - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Netflix (NFLX - Free Report) Beats but Guides Weak; IBM Mixed: UAL, CSX Top
A busy afternoon for Q1 earnings results after today's closing bell are taking headlines today: Netflix and IBM, along with transportation giants United and CSX Corp., 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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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Netflix, IBM, United and CSX
For Immediate Release
Chicago, IL –April 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Netflix (NFLX - Free Report) , IBM (IBM - Free Report) , United (UAL - Free Report) and CSX Corp. (CSX - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Netflix (NFLX - Free Report) Beats but Guides Weak; IBM Mixed: UAL, CSX Top
A busy afternoon for Q1 earnings results after today's closing bell are taking headlines today: Netflix and IBM, along with transportation giants United and CSX Corp., 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.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.