Earnings for the Week
This week was one crowded with earnings. Here’s a rundown of some of the earnings you might have missed:
There is Hope for Netflix
The popular streaming service company reported that it lost up to 970,000 net subscribers during the just concluded quarter, much less than the 2 million loss they had anticipated. They, however, announced expectations to add 1 million net subscribers in Q3, 2022. The expectations affected their stock price positively. They also reported an 8.6% year-on-year growth in revenue.
As Netflix strives to remain atop competitors, they plan to launch an ad-tier subscription by next year.
Netflix Share Price Gain Driven By Positive Guidance and Expectation
Snap Is Facing Hard Times from Competitors
The company struggled with profitability in the just concluded quarter. While revenue grew by 13% year-on-year, the average revenue per user declined by 4%. A net loss of $422 million was reported. This was largely due to a reduction in demand for its ad services and increased competition. To ensure they stay profitable, the company has decided to slow down its rate of hiring and cut down on operating costs.
Banks Are Riding on High Interest Rates
Bank of America and Goldman Sachs reported their earnings for the quarter just ended. While Bank of America grew its revenue, thanks to the high-interest rate environment, Goldman Sachs grew its fixed income business.
Bank of America recorded revenue growth of 6% year-on-year, while Goldman Sachs reported a decline in revenue of 23%.
Bank of America Share Price Gain Driven by Y-O-Y Revenue Growth
Goldman Sachs Share Price Gain Driven by Revenue Growth in Fixed Income Trading Business
Johnson and Johnson Shrinks Full-Year Expectations
The company announced revenue growth of 3% year-on-year. However, the company’s management is no longer confident in its outlook for the year. The company announced a revised revenue outlook of $94.3 billion, compared to the $94.8 — $95.8 billion it initially stated.
J&J Share Price Loss Driven by Reduced Revenue Expectations