Today’s Earnings

American Airlines

American Airlines kicks us off today, reporting $1.15 a share on revenue of $11.3 billion. Estimates were for $1.15 on $11.4 billion. So revenue a little light. AAL also guided for full year 2020… $4 to $6 per share. Estimates are for $5.04, so I guess they’re still on target there. A 30-50% swing in earnings projections is pretty large, looks like they have no idea what the future holds. The stock is down a little over 2%.

Comcast

Comcast reported 4th Quarter earnings of $0.79 per share on revenue of $28.4 billion. The estimate was $0.75 per share on revenue of $28.2 billion. They also added 442k new high-speed internet customers, beating expectations of 378k. The stock is currently down a little over 1.5% at 46.67, low of the day so far is 45.87 after opening at 46.54.

They had a net drop in video customers(chord cutters) of 149k vs 139k expected. Last year they only lost 29k. This will probably stabilize at some point but who knows when that is. Less people are watching traditional cable, streaming is the future.

NBCUniversal’s revenue dropped 2.6% and the movie revenue dropped 21%. Comcast pointed it’s finger at “Cats” (which I heard was dreadful) as being the cause, along with previous 4th quarter having strong releases.

Comcast, through NBCUniversal, is also joining the streaming world with their offering Peacock. Yet another streaming service… It’s a tempting one considering it includes some sports and actual live games, but if it is limited to what NBC carries, I’m guessing it’s not enough to pull the right audience away from other streamers. It will also carry live news, but again what streamers are watching that? Their goal of 30-35 million active users by 2024 feels a bit lofty. I would think we’re going to have some consolidation before we get there, and this service is going to fail on it’s own. They are giving current Comcast and Cox cable subscribers free accounts, so if they are cheating and including them as active users I suppose it could hit that number pretty quick. For more information on that service… https://www.cnbc.com/2020/01/16/nbc-peacock-price-launch-date-and-shows.html

Kimberly Clark

KMB reported 4th Quarter earnings of $1.71 per share on revenue of $4.6 billion. The estimate was $1.70 per share on revenue of $4.5 billion. Full year guidance is $7.10 to $7.35 per share vs $7.22 estimate. Stock is reacting positively to earnings currently up almost 4(2.6%) to 148.10

Procter & Gamble

Procter & Gamble reported earnings of $1.42 per share on revenue of $18.2 billion. The estimate was $1.37 per share on revenue of $18.3 billion.

The company said it expects fiscal 2020 earnings of $4.88 to $5.02 per share. Previous guidance was earnings of $4.75 to $4.97 per share and the current earnings estimate is $4.95 per share for the year. So so news, nothing breakout or exciting. Stock is up slightly.

Southwest Airlines

Southwest Airlines reported earnings of $0.98 per share on revenue of $5.7 billion. The estimate was $1.11 per share on revenue of $5.7 billion. Pretty decent miss on earnings but the stock is up 1.66% to 54.37. Took a mild hit over last few days probably due to UAL’s earnings, market looks like it was ready for it.

Intel and E*Trade

Intel and E*Trade report after the bell. If Ameritrade is any indication we can look for a miss from ETFC. Intel has had a pretty strong run over the last 5 months running from around 45 to 63(40%). This after the leadup and fallout of their last earnings report where they beat pretty handily. Lower expectations enough and you have these results… Chip stocks in general have been on quite a tear, but Intel reports haven’t always been in line with the industry. Whatever happens, it will be interested to hear what they say.