This week, our focus was on such companies as Netflix, Morgan Stanley, Goldman Sachs, and Procter & Gamble. Find out how their shares reacted to the latest events.

Morgan Stanley report: quarterly profit dropped by 40%

Morgan Stanley report: quarterly profit dropped by 40%

On Tuesday 17 January, reports for Q4 and the whole of 2022 were presented by Morgan Stanley (NYSE: MS) – one of the largest American banks –, which sent its stock climbing 5.91% to $97.08 on the same day.

Compared to the results of Q4, 2021, revenue in October - December dropped by 12.22% to $12.74 billion, which is 2.6% higher than analysts had forecast. Net profit in Q4 decreased by 39.51% to $2.24 billion, and EPS dropped by 37.32% to $1.26. Experts had forecast an EPS of $1.19.

Compared to 2021, during the whole of 2022, revenue decreased by 10.18% to $53.66 billion, net profit declined by 26.64% to $11.03 billion, and EPS dropped 23.41% to $6.15.

Goldman Sachs report: quarterly profit dropped by 69%

Goldman Sachs report: quarterly profit dropped by 69%

On 17 January, Goldman Sachs, another large US bank, reported on its performance for Q4 and the whole of 2022: the quotes of Goldman Sachs Group Inc. (NYSE: GS) plunged 6.44%, dropping to $349.92.

Over Q4 last year, revenue dropped by 16.19% to $10.59 billion, which is 1% lower than the consensus forecast. Net profit dropped by 68.77% to $1.19 billion, and EPS by 69% to $3.32. Analysts had forecast an EPS of $5.48.

Over 2022, the revenue of Goldman Sachs Group Inc. reached $47.37 billion, losing 20%, and net profit recorded a decline of 49% to $10.77 billion or $30.06 per share.

P&G report: quarterly revenue dropped for the first time in five years

P&G report: quarterly revenue dropped for first time in 5 years

On Thursday 19 January, one of the leaders of the global consumer goods market, the Procter & Gamble Company, published its report for Q2, financial 2023. The results were in accordance with Wall Street forecasts.

Revenue in October - December recorded a drop of 0.86% to $20.77 billion, which represents the first decline in five years. Net profit decreased by 6.67% to $3.96 billion, and EPS fell 4.22% to $1.59. The 6% decline in sales volume was offset by an average increase of 10% in prices.

As you might remember, P&G raised its product prices several times over 2022 to compensate for the higher manufacturing and transportation expenses, as well as increased employee wages. P&G management announced that it would continue with price rises also in 2023.

The stock price of the Procter & Gamble Company (NYSE: PG) has been falling since the beginning of the week, losing 5.6% since Tuesday, and finally reaching $142.42.

Netflix report: subscriber gains reassure investors

Netflix report: increased subscriber numbers reassure investors

On 19 January, Netflix Inc. which owns a popular streaming service presented its reports for Q4 and the whole of 2022. Moreover, it announced changes in management. One of the co-founders, Reed Hastings, is stepping down as CEO of Netflix but will remain the chairman of the board of directors. The company will be managed by co-directors Ted Sarandos and Greg Peters.

From October to December, Netflix revenue grew by 1.82% to $7.85 billion, net profit lost 90.1%, reaching $55 million, and EPS dropped by 90.88% to $0.12. Over the year, revenue increased by 6.47% to $31.62 billion, net profit dropped by 12.3% to $4.49 billion, and EPS declined by 11.48% to $9.95. The number of subscribers increased by 7.66 million over the quarter, and by 8.91 million over the year, reaching 230.75 million.

Netflix expects Q1 2023 revenue to reach $8.2 billion, operational profit to go up to $1.6 billion, and diluted earnings to reach $2.8. On Thursday, after the report and forecast, Netflix Inc. (NASDAQ: NFLX) stock surged 7.12% to $338.27.

Summing up

This week, financial reports were presented by Morgan Stanley, Goldman Sachs Group Inc., Procter & Gamble Company, and Netflix Inc. The stocks of the first and the second companies on the list reacted with growth and those of the other two with decline.

Material is prepared by

Server is the guru of searching for market insights. Since 2019 he writes about everything that might be useful to the investor, focusing on the stock market and its assets.