Sizing Up Netflix
Investors are on the edge of their seats as streaming giant Netflix is set to release its quarterly results on Thursday. The company has bounced back from a recent slump, with its shares now soaring near record highs.
This quarter, all eyes are on subscriber metrics, especially as the company plans to alter its reporting strategy in the upcoming quarter of 2025. In the last release, Netflix boasted 269.6 million subscribers, marking a robust 16% surge year-over-year.
Earnings and revenue expectations remain steady, with analysts predicting a 43% growth in earnings per share on a 17% rise in sales. The company’s increased profitability is evident in rising margins over recent periods.
Taiwan Semiconductor in the Tech Spotlight
Taiwan Semiconductor (TSM) has ridden the semiconductor wave to an 80% surge in 2024, outperforming expectations. The rush for AI chips has been a significant driver of this growth.
While earnings projections have seen a recent uptick, with estimates pointing to a 20% increase in earnings per share and a 5% rise in sales, investor optimism has expanded the company’s valuation multiples. Despite this, the current PEG ratio suggests that investors are not overpaying for growth.
Furthermore, TSM’s recent dividend increase by 10% underscores its commitment to rewarding shareholders, making it an attractive option for income-focused investors in the tech sector.
Johnson & Johnson: A Steady Performer
Consumer staple giant Johnson & Johnson may have seen lackluster share performance in recent years, but its consistent earnings track record remains impressive. The company has surpassed EPS estimates in the last ten consecutive releases.
Although there has been a slight downward revision in earnings estimates for the upcoming release, the company’s resilience shines through. Meanwhile, revenue expectations remain stable, hinting at a potential 12% decline year-over-year.
On the Horizon: What Lies Ahead
As the Q2 earnings season gains momentum, the upcoming week holds crucial insights for investors tracking Netflix, Taiwan Semiconductor, and Johnson & Johnson. These reports are sure to provide valuable cues for market watchers.