We are entering the second week of January and things are already picking up steam in the markets. Indeed, we’re approaching a new earnings season, where companies will reveal their latest financial figures to investors. This week, all eyes are on the US banks and one of the major cannabis companies.
Go green with Tilray
Will 2022 see looser restrictions on the cannabis industry? We’ll have to wait and see! However, the Canadian company Tilray is staying the course with some reassuring figures.
Sales have increased 37-fold over the past five years, showing strong development for the marijuana market. On top of that, Tilray recently acquired a new drinks company to help it penetrate the US market. The company in question is Breckenridge Distillery, based in Colorado.
Will this deal pay off? Tune into Tilray’s earnings call on Monday January 10th to find out. The company will also reveal its quarterly results and give some new forecasts for the future. Tilray is rumoured to announce a goal of reaching $4 billion in annual income by 2024 (it’s currently at $1 billion). Meanwhile, earnings per-share is expected to grow by 41.3% year-over-year.
Friday is banking day!
Four of the major Wall Street banks will all report their quarterly figures on Friday January 14th. As usual, the banks are the first to kick things off every earnings season, so keep your eye on JP Morgan Chase, Wells Fargo, Blackrock and Citigroup this week.
JPMorgan Chase is expected to report earnings of $2.94 per share, which is a decrease of 22% year-over-year. Analysts expect revenue of $29.58 billion, up 1.2% from the previous quarter.
Wells Fargo could report earnings of $1.1 per share, which would represent 73% growth year-over-year. In addition, analysts predict revenues of $18.34 billion, up 2% from the previous quarter.
Blackrock, the world’s largest asset manager, is expected to report fourth-quarter earnings of $10.14 per share, down about 0.4% from the same quarter last year.
Citigroup could post earnings of $1.84 per share, which would be an 11% decline year-over-year. Revenue could reach $17.11 billion, an increase of 3.69% compared to the previous quarter.
The banking sector appears to be doing well in the United States, however, there are still new challenges for 2022. For example, how can the banks become more sustainable? Or pivot towards new technology such as crypto and blockchain.
Why you should watch earnings season
Every quarter, earnings season brings you new opportunities! It can also inject some volatility into your portfolio. For this reason, it’s important to follow the next few days, and the coming weeks, with interest. Check out our article on the importance of earnings season and how it can impact your portfolio.
Economic and earnings calendar
Monday – Industrial production in Ireland (November). Unemployment rate in the eurozone (November). Quarterly figures from Tilray.
Tuesday – Inflation rate in the Netherlands (December). Industrial production in Spain (November). Inflation rate in China (December).
Wednesday – Industrial production in the eurozone (November). Unemployment rate in Ireland (December). Inflation rate in the United States (December). Quarterly figures from Lennar, Cropenergies, Atari.
Thursday – Unemployment rate in the United States (January).
Friday – Trade balance in the Netherlands (November). Inflation rate in France and Spain (December). Budgetary balance in France and in the eurozone (November). Quarterly figures from JPMorgan Chase, Wells Fargo, Citigroup, Blackrock.
We’ll be back next week with another edition of the BUX Breakdown. In the meantime, have a great week on the markets!
The BUX Breakdown was written by Clémentine Pougnet.
All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.