Monday 20 January
- World Economic Forum, Davos, Switzerland (all week)
- Rightmove UK house price index
- President Trump inauguration, Washington DC
Tuesday 21 January
- First-half results from Kier
- Trading statements from Cranswick, Premier Foods, Serica Energy and Yu
- UK unemployment and wage growth
- In the US, quarterly results from 3M, Capital One, DR Horton, United Airlines, Fifth Third Bancorp and Seagate
- Netflix full-year results
Streaming giant Netflix will release its full-year results on 21 January, currently sitting as the 25th most valuable company in the world.
The results come after consistently rising share prices for the company since 2022, but have seen a small taper in January amid rising US treasury yields and results anticipation.
Russ Mould, AJ Bell investment director, Danni Hewson, AJ Bell head of financial analysis, and Dan Coatsworth, AJ Bell investment analyst, said: “Netflix fell out of favour in 2022 when it doled out some disappointing subscriber growth numbers, interest rates rose, and the share price fell by two-thirds.
“In a trend that may show how useful, or otherwise, catchy mnemonics and marketing tags are, Netflix’s shares promptly more than quadrupled as it got subscriber growth back on track and generated substantial improvements in sales, profits and cash flow as a result.”
In the coming results, analysts will watch for sales of $38.9bn, up 15% year on year. Earnings per share are expected to be $19.76 for the year, up from $12.03 last year.
At the end of the third quarter, Netflix had 282.8m subscribers, up from 167m at the end of 2019 before Covid broke out. However, Netflix is now placing less of an emphasis on membership numbers or average revenue per member, and will stop publishing this data.
“Mr Peters and Mr Sarandos argue that revenue, profits and cash flow are now better indicators, given Netflix’s greater maturity,” the AJ Bell trio said.
“In addition, there are new growth levers in the business beyond just subscribers and pricing, notably advertising, additional features and varied price and membership tiers, so viewer engagement is now a greater focus than just net adds and subs numbers. All the same, ARM has generally started to flatten off a bit, perhaps as a result of the new business models and segmentation.”
Wednesday 22 January
- Trading update from Hochschild Mining
- UK government borrowing figures
- In Asia, quarterly results from Kia
- In the US, quarterly results from Procter & Gamble, Johnson & Johnson, Abbott Labs, GE Vernova, General Dynamics, Amphenol, Kinder Morgan, Travelers, United Rentals, Kimberly-Clark, Las Vegas Sands, Halliburton, Teradyne, Textron and Alcoa
Thursday 23 January
- Trading statements from Harbour Energy and Mitie
- US oil inventories
- US weekly initial unemployment claims
- In Asia, quarterly results from SK Hynix, Hyundai Motor and Nidec
- In Europe, quarterly results or trading updates from LVMH, Christian Dior, EQT and Sandvik
- In the US, quarterly results from Visa, Intel, Intuitive Surgery, GE Aerospace, Texas Instruments, Union Pacific, CSX, Freeport-McMoRan, Western Digital, and McCormick
Friday 24 January
- First half results from The Works
- Trading update from Paragon Banking
- GfK UK consumer confidence survey
- Interest rate decision from the Bank of Japan
- Flash purchasing managers’ indices from Japan, Asia, Europe, the UK and USA
- US existing homes sales
- In Asia, quarterly results from LG Electronics
- In Europe, quarterly results from Givaudan, LM Ericsson and Signify
- In the US, quarterly results from American Express, Verizon and HCA Healthcare
- Burberry third-quarter trading update
Burberry will provide its third-quarter trading update as analysts anticipate a £27m operating loss for the year.
“Burberry’s first-half results for the six months to September lived down to a very low set of expectations when they were released in November, as sales fell by a fifth and the luxury goods company plunged into loss,” Mould, Hewson and Coatsworth said.
“Nor were chair Gerry Murphy and new chief executive officer Joshua Schulman able to offer too much succour for the rest of the year, as they noted it was just too early to see if the second half’s profit would be good enough to erase the first half operating deficit of £53 million.”
However, in the second half of last year, shares rose two thirds from their low points in summer. The AJ Bell trio believes the growth could be due to an improved outlook on China, a main market for the company; a new strategic plan and campaign push; and a slowdown in the rate of sales decline.
Currently, sales are expected to drop 19.5% for the fiscal year.
“Analysts and shareholders will also be on alert for any comments about inventory. The balance sheet bore £596 million of stock at the end of September 2024, up from £526 million the year before and £507 million at year end, despite the tumble in sales. That meant a sharp jump in inventory days,” Mould, Hewson and Coatsworth said.
“A bad Christmas would raise the risk of further discounting to shift unsold product which would in turn put further pressure on margins and elongate the recovery period to profitability and any return to the dividend list.”