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Pre-market futures are up again this morning on the strength of earnings beats across the board for major Wall Street banks — it’s the unofficial start to Q2 earnings season. In the interest of accuracy, we’ve already seen a few major companies report earnings, including PepsiCo ((PEP - Free Report) and Delta Air Lines ((DAL - Free Report) yesterday, and a dozen or so firms on the S&P 500 previously. So far so good in Q2, and market indices are reflecting this.
JPMorgan Chase ((JPM - Free Report) , the biggest of the big banks, posted a 20%+ earnings beat this morning for its fourth-straight beat, and 10th in the last 12 quarters. Earnings of $4.37 per share easily outpaced the $3.62 in the Zacks consensus and the $2.76 per share reported a year ago. Revenues of $41.31 billion amounted to an +11% beat, and well beyond the $30.72 billion posted in Q2 from last year. Guidance for next quarter was boosted, with higher premiums and lighter-than-expected costs enhancing the stock, which is +3% in the pre-market.
Citigroup ((C - Free Report) also posted beats on both top and bottom lines this morning, albeit at more modest levels: earnings of $1.33 per share came in 2 cents higher than consensus, on $19.44 billion in revenues that took out the $19.36 billion expected. Net Income was -6% year over year on higher expenses, cost of credit and lower deposits. The bank adds +1.6% in pre-market trading to its +5.4% year to date, still underperforming the S&P 500, but headed in the right direction.
Wells Fargo ((WFC - Free Report) was the best-performing big bank in today’s pre-market, +3.7%, on its beat-and-raise for Q2, as well: earnings of $1.25 per share topped the Zacks consensus by a solid dime for an upside surprise of +8.7%, while on the revenue side, $20.53 billion outperformed estimates by +1.28%, and notably ahead of the $17 billion reported a year ago. This is Wells Fargo’s fourth straight earnings beat, and has only missed once in the past 12 quarters.
Besides the big banks, United Healthcare ((UNH - Free Report) also beat estimates for its Q2 top and bottom lines this morning, with earnings of $6.14 per share posting a +3.7% positive surprise from the $5.92 expected (and $5.57 per share reported in the year-ago quarter). Revenues of $92.9 billion amounted to a +2.54% upside surprise. well ahead of the $80.33 billion from Q2 2022. Guidance was slightly raised, and shares are up +3.6% in early trading — though still down more than -10% year to date.
Many more banks, airlines, medical companies and the first FAANG stocks (Netflix [(NFLX - Free Report) ] next Wednesday) will report earnings next week, as Q2 season ramps up. In addition, Retail Sales, various housing data and Empire State/Philly Fed surveys will all be out in the next week. None of these reports are likely to have the same market impact of this past Wednesday’s Consumer Price Index (CPI) report; think of them more as building blocks to our overall understanding of where our economy is. Currently, the market is pricing in a bright near-term future.
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Wall Street Kicks Off Q2 2023 Earnings Season
Pre-market futures are up again this morning on the strength of earnings beats across the board for major Wall Street banks — it’s the unofficial start to Q2 earnings season. In the interest of accuracy, we’ve already seen a few major companies report earnings, including PepsiCo ((PEP - Free Report) and Delta Air Lines ((DAL - Free Report) yesterday, and a dozen or so firms on the S&P 500 previously. So far so good in Q2, and market indices are reflecting this.
JPMorgan Chase ((JPM - Free Report) , the biggest of the big banks, posted a 20%+ earnings beat this morning for its fourth-straight beat, and 10th in the last 12 quarters. Earnings of $4.37 per share easily outpaced the $3.62 in the Zacks consensus and the $2.76 per share reported a year ago. Revenues of $41.31 billion amounted to an +11% beat, and well beyond the $30.72 billion posted in Q2 from last year. Guidance for next quarter was boosted, with higher premiums and lighter-than-expected costs enhancing the stock, which is +3% in the pre-market.
Citigroup ((C - Free Report) also posted beats on both top and bottom lines this morning, albeit at more modest levels: earnings of $1.33 per share came in 2 cents higher than consensus, on $19.44 billion in revenues that took out the $19.36 billion expected. Net Income was -6% year over year on higher expenses, cost of credit and lower deposits. The bank adds +1.6% in pre-market trading to its +5.4% year to date, still underperforming the S&P 500, but headed in the right direction.
Wells Fargo ((WFC - Free Report) was the best-performing big bank in today’s pre-market, +3.7%, on its beat-and-raise for Q2, as well: earnings of $1.25 per share topped the Zacks consensus by a solid dime for an upside surprise of +8.7%, while on the revenue side, $20.53 billion outperformed estimates by +1.28%, and notably ahead of the $17 billion reported a year ago. This is Wells Fargo’s fourth straight earnings beat, and has only missed once in the past 12 quarters.
Besides the big banks, United Healthcare ((UNH - Free Report) also beat estimates for its Q2 top and bottom lines this morning, with earnings of $6.14 per share posting a +3.7% positive surprise from the $5.92 expected (and $5.57 per share reported in the year-ago quarter). Revenues of $92.9 billion amounted to a +2.54% upside surprise. well ahead of the $80.33 billion from Q2 2022. Guidance was slightly raised, and shares are up +3.6% in early trading — though still down more than -10% year to date.
Many more banks, airlines, medical companies and the first FAANG stocks (Netflix [(NFLX - Free Report) ] next Wednesday) will report earnings next week, as Q2 season ramps up. In addition, Retail Sales, various housing data and Empire State/Philly Fed surveys will all be out in the next week. None of these reports are likely to have the same market impact of this past Wednesday’s Consumer Price Index (CPI) report; think of them more as building blocks to our overall understanding of where our economy is. Currently, the market is pricing in a bright near-term future.