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DJIA Futures: +140 (+0.4%)

SPX Futures: +25 (+0.5%)

NASDAQ Futures: +138 (+0.8%)

Good morning friends!

Futures are higher as tech stocks rise after Netflix’s (NFLX) strong Q4 results. 

Let’s get right to it!

Netflix Rallies 

Netflix (NFLX) shares are rallying 10.6% ahead of the open after beating Q4 subscriber and revenue expectations. 

Here’s how the streaming giant’s results compared to analysts’ estimates: 

  • EPS: $2.11 vs $2.22 expected
  • Revenue: $8.83 billion vs $8.72 billion expected
  • Total memberships: 260.8 million vs 256 million expected

The company added 13.1 million subscribers during the quarter, blowing past expectations of 8 million to 9 million. 

Netflix raised its 2024 operating margin forecast to 24% from 22% to 23% previously. 

The company expects EPS of $4.49 in Q1 vs analysts’ $4.10 estimate.

Texas Instruments Revenue Falls Short

Texas Instruments (TXN) shares are falling 2.8% in premarket trade after reporting mixed Q4 results and issuing weak guidance. 

Here’s how the chipmaker’s results compared to analysts’ estimates: 

  • EPS: $1.49 vs $1.47 expected
  • Revenue: $4.08 billion vs $4.12 billion expected

Revenue fell 13% year over year. 

The company’s CEO said, “During the quarter we experienced increasing weakness across industrial and a sequential decline in automotive.”

Texas Instruments forecast Q1 revenue of $3.45 billion to $3.75 billion vs $4.05 billion expected. 

AT&T Slips On Weak Results

AT&T (T) shares are down 2.7% ahead of the open after missing Q4 earnings expectations. 

Here’s how the company’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.54 vs $0.56 expected
  • Revenue: $32 billion vs $31.46 billion expected

Revenue was up slightly on an annual basis. 

Revenue in the wireless services division rose 3.9% from a year ago but business wireline sales dropped 10.3%.

The number of customers who added new lines during the quarter came in at 526,000 vs 487.500 expected. 

AT&T had Q4 free cash flow of $6.4 billion vs $6.1 billion expected.

The company forecast adjusted full-year 2024 EPS of $2.15 to $2.25 vs $2.46 expected. 

Mortgage Demand Rises

Mortgage applications rose last week even as rates inched higher. 

The Mortgage Bankers Association reported purchase applications rose 8% from a week ago but were still down 18% year over year. 

That jump appeared to be driven by strong buyer demand after the holidays. 

An MBA economist said, “Conventional and FHA purchase applications drove most of the increase last week as some buyers moved to act early this season.”

Refinance applications fell 7% weekly and 8% annually. 

The average 30-year fixed contract rate rose to 6.78% from 6.75%. 

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