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Major Banks Post Strong Q1 Earnings Results

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This morning, Q1 earnings season accelerates with the releases of some of Wall Street’s biggest banks ahead of the opening bell. Results have boosted early-morning trading activity, with the Dow looking to open 200+ points this morning. There was also a surprise acquisition deal in the Oil & Gas space, which is at a 39% premium from the acquiree’s closing price Thursday.

Oil supermajor Chevron (CVX - Free Report)  has agreed to buy E&P mid-cap Anadarko Petroleum  for $33 billion in cash and stock. This move is calculated to strengthen Chevron’s upstream operations, especially in shale, deep water and natural gas segments. CVX shares are selling off 4% on the news, which is typical in big moves like this.

For Anadarko, this buyout has driven up its share price 31% at this hour, with more room to rise in order to match the buyout price. Anadarko reportedly generates 666K barrels of oil (equivalent) per day. The company was founded 60 years ago, and its current headquarters are in The Woodlands, TX.

JPMorgan Chase (JPM - Free Report)  beat earnings and revenue estimates for its Q1 2019, putting up $2.65 per share versus $2.32 expected, on $29.1 billion that outperformed the Zacks consensus estimate of $28 billion. Fixed Income was down 18% year over year, but so were Provisions for Loan Losses in the quarter, -28%. The finance giant returned $7.4 billion to shareholders via stock dividends and buybacks.

This is a nice bounce-back from a disappointing Q4 for JPMorgan, which missed estimates by 10%. America’s biggest bank has only missed two quarters in the past 15. Shares are up 3% in today’s pre-market on the news. The stock had been carrying a Zacks Rank #4 (Sell) with a Style Score (Value - Growth - Momentum) of F prior to the announcement.

Wells Fargo (WFC - Free Report)  also beat estimates on top and bottom lines: $1.20 per share versus $1.08 expected, on $21.61 billion in revenues that were 3.44% ahead of the Zacks consensus, though lower than the $21.93 billion reported in Q1 2018. Earnings were also up from $1.12 per share in the year-ago quarter.

This marks the third time in the past six quarters Wells Fargo has posted an earnings beat, as it continues to roll off its accounts scandal from years past. Shares are +0.9% in today’s pre-market, and the company donned a Zacks Rank #3 (Hold) rating ahead of the earnings release.

 PNC Financial (PNC - Free Report)  was another Wall Street bank to post Q1 earnings this morning, topping estimates by 2 cents to $2.61 per share on earnings of $4.29 billion, better than the $4.24 billion expected, and +4% year over year. Net interest income rose 5% year over year, with loans up 3% quarter over quarter.

Finally, Disney (DIS - Free Report)  unveiled its new streaming service, Disney+, to a very strong reception yesterday afternoon. The new service, which will rival streaming entertainment companies like Netflix (NFLX - Free Report) , is expected to launch November 12th of this year at a monthly subscription price of $6.99. Shares are up nearly 8% in early trading, and looks to open at a new all-time high.

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