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Q3 Earnings Beats for JPMorgan, Citi; Big Miss for Delta
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Tuesday, October 13, 2020
They’re here! The first leg-up into the heart of Q3 earnings season has finally arrived, with reports from two top Wall Street banks and a major airline. Results for the financial institutions actually came in much better than expected, although the airline got hit heard by the coronavirus pandemic in Q3, and its numbers bear this out.
Let’s start with this major airline, Delta (DAL - Free Report) . While quarterly revenues came in only slightly below the Zacks consensus estimate, reporting $3.06 billion (down 79% year over year), the bottom line came in at -$3.30 per share, beneath the already-harsh the -$3.10 expected. The airline ran at only 63% capacity in Q3, and Delta currently holds net debt of $17 billion. The daily cash burn for the Atlanta-based company was an extraordinary $24 million.
Delta has further pushed out its “break-even” goal to next spring, which makes sense after seeing how steep these challenges for the airline were last quarter. The company is also delaying delivery of new aircraft, which looks to lower capital expenditures by roughly $5 billion. Pre-market has Delta down 2% aheads of today’s opening bell.
JPMorgan Chase (JPM - Free Report) easily topped expectations on its bottom line, posting $2.92 per share versus $2.35 estimated by our analysts. The big bank also took a one-time charge for legal expenses in the quarter for 17 cents per share, without which would have made this morning’s earnings beat even more eye-popping. Revenues also outperformed the Zacks consensus: $2.91 billion versus $28.6 billion estimated, and only down slightly from the previous year’s $29.3 billion.
Deposits in the quarter grew an extraordinary 28% for JPMorgan, indicating that people were opting to sock money away rather than spend it, which worked to JPMorgan’s advantage, even as interest rates wallow at historic lows. The company also has a good track record for beating earnings estimates — aside from the March quarter 2020, when the bottom fell out during the early period of the pandemic. Shares are up 1% aheads of the bell. For more on JPM’s earnings, click here.
Citigroup (C - Free Report) also posted a solid beat in its Q3 earnings, reporting $1.40 per share which toppled the Zacks consensus of $1.01. Still well off the pace of the $1.98 per share from the year-ago quarter, Citi was able to step up its earnings during this challenging period. Revenues, on the other hand, though slightly higher than consensus to $17.30 billion, was more than 42% lower year over year. Shares are up 80 cents ahead of Tuesday’s open. For more on C’s earnings, click here.
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Q3 Earnings Beats for JPMorgan, Citi; Big Miss for Delta
Tuesday, October 13, 2020
They’re here! The first leg-up into the heart of Q3 earnings season has finally arrived, with reports from two top Wall Street banks and a major airline. Results for the financial institutions actually came in much better than expected, although the airline got hit heard by the coronavirus pandemic in Q3, and its numbers bear this out.
Let’s start with this major airline, Delta (DAL - Free Report) . While quarterly revenues came in only slightly below the Zacks consensus estimate, reporting $3.06 billion (down 79% year over year), the bottom line came in at -$3.30 per share, beneath the already-harsh the -$3.10 expected. The airline ran at only 63% capacity in Q3, and Delta currently holds net debt of $17 billion. The daily cash burn for the Atlanta-based company was an extraordinary $24 million.
Delta has further pushed out its “break-even” goal to next spring, which makes sense after seeing how steep these challenges for the airline were last quarter. The company is also delaying delivery of new aircraft, which looks to lower capital expenditures by roughly $5 billion. Pre-market has Delta down 2% aheads of today’s opening bell.
JPMorgan Chase (JPM - Free Report) easily topped expectations on its bottom line, posting $2.92 per share versus $2.35 estimated by our analysts. The big bank also took a one-time charge for legal expenses in the quarter for 17 cents per share, without which would have made this morning’s earnings beat even more eye-popping. Revenues also outperformed the Zacks consensus: $2.91 billion versus $28.6 billion estimated, and only down slightly from the previous year’s $29.3 billion.
Deposits in the quarter grew an extraordinary 28% for JPMorgan, indicating that people were opting to sock money away rather than spend it, which worked to JPMorgan’s advantage, even as interest rates wallow at historic lows. The company also has a good track record for beating earnings estimates — aside from the March quarter 2020, when the bottom fell out during the early period of the pandemic. Shares are up 1% aheads of the bell. For more on JPM’s earnings, click here.
Citigroup (C - Free Report) also posted a solid beat in its Q3 earnings, reporting $1.40 per share which toppled the Zacks consensus of $1.01. Still well off the pace of the $1.98 per share from the year-ago quarter, Citi was able to step up its earnings during this challenging period. Revenues, on the other hand, though slightly higher than consensus to $17.30 billion, was more than 42% lower year over year. Shares are up 80 cents ahead of Tuesday’s open. For more on C’s earnings, click here.
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