All articles tagged with #second quarter earnings
Airbnb's Q2 earnings beat estimates with a 13% revenue increase to $3.1bn, but the company warns of challenging months ahead due to tariffs and economic uncertainties, leading to a 6.5% drop in shares. Despite strong summer bookings, future growth is expected to slow, and the company is investing in new services and a $6bn share buyback program.
JPMorgan Chase is set to report its second-quarter earnings with expected earnings of $4.48 per share and revenue of $44.16 billion, reflecting strong trading and wealth management performance amid volatile markets and economic recovery signs, with other major banks also scheduled to release results.
Exxon Mobil warned that lower oil and gas prices could reduce its second-quarter profit by over $1 billion, with benchmark Brent crude prices falling 11% from the previous quarter, impacting earnings ahead of its August 1 earnings report.
Rivian's stock has surged 66% in the past month, prompting Cantor Fitzgerald analyst Andres Sheppard to downgrade the shares to neutral from overweight due to concerns about valuation. Despite raising his price target and revenue estimates for the company, Sheppard believes the stock is now properly valued and is adopting a more conservative stance. He will be closely monitoring Rivian's second-quarter earnings report for insights on average selling prices, gross margins, cost savings, and the company's relationship with Amazon, which remains its largest shareholder.
Barclays reported second quarter net income of £1.3 billion ($1.68 billion), meeting expectations despite slower momentum in investment banking. The bank's domestic division and consumer and cards arm saw higher revenues, while investment banking revenues dropped by 3%. Barclays announced plans for a share buyback of up to £750 million and expressed confidence in meeting full-year targets. Total revenues reached £6.3 billion, down 6% from the previous year, and operating costs dropped 6%. Barclays shares are up by about 1.5% year to date.
Wells Fargo has announced a $30 billion stock buyback and an increase in its dividend to 35 cents per share, causing its shares to rise by over 3%. The move comes after the bank exceeded second-quarter earnings and revenue expectations, driven by a 29% increase in net interest income. The Federal Reserve's rate increases have benefited financial institutions, but Democratic lawmakers have introduced bills to curb stock buybacks, arguing that they prioritize wealthier shareholders over employee pay.
Airline stocks experienced a drop after Alaska Air Group reported better-than-expected second-quarter earnings of $3 per share, surpassing analyst expectations of $2.71 per share. However, the airline's forecast for third-quarter revenue growth of 0 to 3% from the previous year was less optimistic, causing a decline in airline stocks.
Chevron has announced that its Chief Financial Officer (CFO), Pierre Breber, will retire next year, and Eimear Bonner, the chief technology officer of Chevron Technical Center, will succeed him. The company also waived the mandatory retirement age requirement for its CEO, Mike Wirth. Chevron reported preliminary second-quarter earnings, with net profit falling to $5.8 billion. However, these results are not comprehensive, and the complete earnings figures will be released on July 28. Chevron also highlighted record shareholder distributions and record production at the Permian Basin.
Bank ETFs, including the Invesco KBW Bank ETF and the SPDR S&P Regional Banking ETF, are surging as investors analyze the second-quarter earnings results of major banks such as Bank of America and Morgan Stanley. The Invesco KBW Bank ETF is on track for its best monthly performance since February 2021, while the SPDR S&P Regional Banking ETF is experiencing its best daily performance since June 6. Bank stocks are outperforming the S&P 500, with Bank of America and Morgan Stanley being significant holdings in the Invesco KBW Bank ETF. Despite the recent bounce, bank ETFs are still down for the year due to regional bank failures earlier in 2023.
Stock futures dipped slightly as traders prepare for a busy week of corporate earnings. The Dow Jones Industrial Average and S&P 500 futures both slipped, while Nasdaq 100 futures traded lower. Last week saw gains in the stock market following solid big bank earnings and softer inflation reports. Second-quarter earnings season is gaining momentum with results expected from major financial institutions and technology giants. Analysts forecast a decline in S&P 500 earnings from a year ago. Additionally, the Federal Reserve enters its "blackout period" ahead of its July policy meeting, with expectations of an interest rate increase. United Airlines pilots have reached a preliminary deal to increase pay.
JPMorgan Chase is set to report its second-quarter earnings, with analysts expecting earnings of $4 per share and revenue of $38.96 billion. The bank has outperformed its peers this year, with shares climbing 11%. The recent acquisition of First Republic may help cushion the bank against industry headwinds, such as rising funding costs and slowing loan growth. However, JPMorgan is not immune to the slowdown in trading and investment banking activity. Analysts will also be interested in CEO Jamie Dimon's insights on the economy and banking regulation.
US banks are facing higher funding costs as they compete to keep or attract depositors, with bank deposit rates reaching their highest level in over a decade. These increased costs are eating into banks' net interest margin, a key measure of profitability. As a result, some mid-sized regional banks may see a drag on their second-quarter results and lower earnings estimates for the rest of the year. The first set of second-quarter earnings from major US banks, including JPMorgan Chase, Citigroup, Wells Fargo, and State Street, will be closely watched by investors. Additionally, banks heavily reliant on investment banking, such as Goldman Sachs, may face challenges due to a recent decline in deal making.
U.S. stocks are expected to have a quiet start as investors await the release of June's consumer price index and the beginning of second-quarter earnings season.