Jump to content

Earnings Season


MongiIG

Recommended Posts

JPMorgan Chase $JPM beats analysts' expectations on both top and bottom lines. Q2 EPS at $3.78 vs $3.16 estimated, and revenue at $30.5Bln vs $30Bln expected.

image.png

 

image.png

13th July, 2021. Reported by CNBC

Edited by MongiIG
Added published date
Link to comment

Bank of America shares dropped after posting second-quarter revenue below analysts’ expectations.

image.jpeg

BAC down 2.3% after earnings disappointment.
 

Earnings: $1.03 a share, including a one-time $2 billion tax benefit. It wasn’t immediately clear how that figure is comparable to the 77 cents estimate of analysts surveyed by Refinitiv.

 

Revenue: $21.6 billion, just under the $21.8 billion estimate.

 

14th July, 2021. News from CNBC

  • Like 1
Link to comment

Wells Fargo smashes profit estimates on reserve release boost.

 

Wells Fargo smashes profit estimates on reserve release boost© Reuters. FILE PHOTO: A Wells Fargo logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo

(Reuters) -Wells Fargo & Co swung to a profit in the second quarter, smashing Wall Street expectations, as it released $1.6 billion in funds it had set aside to cover loans that might have gone bad.

 

By Noor Zainab Hussain and Matt Scuffham, 14 July 2021. Investing.com

  • Like 1
Link to comment

IBM Earnings, Revenue beat in Q2

 

IBM Earnings, Revenue beat in Q2© Reuters. IBM Earnings, Revenue beat in Q2

Investing.com - IBM (NYSE:IBM) reported on Monday second quarter earnings that beat analysts' forecasts and revenue that topped expectations.

IBM announced earnings per share of $2.33 on revenue of $18.75B. Analysts polled by Investing.com anticipated EPS of $2.32 on revenue of $18.29B.

IBM shares are up 9% from the beginning of the year and are trading at $140.75 , down-from-52-week-high.They are under-performing the S&P 500 which is up 13.46% from the start of the year.

IBM shares gained 1.96% in after-hours trade the report.

IBM follows other major Technology sector earnings this month

 

IBM's report follows an earnings missed by Taiwan Semiconductor on Thursday, who reported EPS of $0.929 on revenue of $13.35B, compared to forecasts EPS of $0.9296 on revenue of $13.23B.

Accenture had beat expectations on June 24 with third quarter EPS of $2.4 on revenue of $13.26B, compared to forecast for EPS of $2.24 on revenue of $12.81B

 

Investing.com

Link to comment

Netflix beats on paid subscriber growth, but misses earnings expectations.

image.png

Shares of Netflix recovered from an initial dip and were up nearly 1% after the bell Tuesday after the company reported earnings that missed on the bottom line. The company’s revenue slightly beat estimates, and it confirmed speculation that it will expand more into gaming.

Netflix Has 45% Fewer Movies (and 400% More TV Shows) Than it Did in 2010 -  TV[R]EV

Here’s what the company reported versus expectations:

  • Earnings per share (EPS): $2.97 vs $3.16 expected, according to Refinitiv survey of analysts
  • Revenue: $7.34 billion vs $7.32 billion expected, according to Refinitiv
  • Global paid net subscriber additions: 1.54 million vs 1.19 million expected, according to Street Account

By Jessica Bursztynsky, 20 July 2021. CNBC

Link to comment

Tesla report more than $1 billion of net income for Q2. Including a loss of $23 millions due to the bitcoin.

Take a look this morning at 3x Tesla long and short daily ETP of GraniteShares listed on the London Stock Exchange. Ticker 3LTS & 3STS

For professional investors only. Capital at risk.

Link to comment
17 hours ago, MongiIG said:

Hi @Marcraffard, thanks for sharing the link on why Tesla stock fell after the earnings. Great article to read.

 

Regards

MongiIG

Thanks MongilG!

I was suprised that Tesla Stock fell after such a huge announcement. I took a long position, so I was surprised and losing money 😁

That's why I made some research to try to understand why it fell.

My StopLoss have not yet been reached 🤞

Link to comment

Hi @Marcraffard It is a good thing you did your research, it is one key tool for trading. With the research you have done, as a trader you will get a better understanding why the market is moving in a certain way, while at the same time you will be able to anticipate these moves when such announcements happen again in future.

All the best - MongiIG

 

  • Like 1
Link to comment
22 hours ago, Marcraffard said:

NIO posting earnings on Wednesday.

With tickers 3LNI and 3SNI investors can express their convictions via GraniteShares ETP 
Capital at risk. For professional investors only.

 

https://www.cityindex.co.uk/market-analysis/where-next-for-nio-shares-ahead-of-its-quarterly-results/ 

Hi @MarcraffardNIO’s share price had risen by close to 7% over the past week, ahead of its upcoming Q2 results this week. Can its Q2 results exceed expectations?

 

MongiIG

  • Like 1
Link to comment

$NIO Q2 Earnings
ETP NIO 3x/-3x - 3LNI/3SNI by GraniteShares

USD
➡️ Revenue $1.3bn (+127% YoY)
➡️ Gross Profit $244m (+403% YoY)
➡️ Gross Margin 18.6% (stable)
➡️ 21,896 cars delivered (+112% YoY)

Q3 Guidance
➡️ 23,000-25,000 car deliveries
➡️ Revenue $1.38bn-$1.49bn

https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-reports-unaudited-second-quarter-2021 

  • Like 1
Link to comment
57 minutes ago, Marcraffard said:

$NIO Q2 Earnings
ETP NIO 3x/-3x - 3LNI/3SNI by GraniteShares

USD
➡️ Revenue $1.3bn (+127% YoY)
➡️ Gross Profit $244m (+403% YoY)
➡️ Gross Margin 18.6% (stable)
➡️ 21,896 cars delivered (+112% YoY)

Q3 Guidance
➡️ 23,000-25,000 car deliveries
➡️ Revenue $1.38bn-$1.49bn

https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-reports-unaudited-second-quarter-2021 

Hi @Marcraffard, thanks for the follow up on NIO Q2 earnings.

 

MongiIG

  • Like 1
Link to comment
  • 2 weeks later...

Post-earnings trade setups: Salesforce and Gap

With Q2 earnings season slowing down, Salesforce and Gap provide us with potential trading opportunities.

BG_salesforce_234230480.pngSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 27 August 2021. IG

This article looks at some of the big movers off the back of recent earnings announcements to try and find stocks that seem to provide a good trading opportunity.

Typically, earnings announcements and trading statements will drive a shift or enhancement of market sentiment.

While many see earnings as a significant risk when holding a stock, placing trades in the wake of such events allows for greater confidence that all market knowledge has been factored into current prices.

Salesforce

Tech giant, Salesforce enjoyed a strong second quarter (Q2) with the company providing a major EPS beat ($1.48 per share versus 92 cents expected).

Meanwhile, revenues grew 23% compared with Q2 2020. This looks to provide the basis for a continuation of the breakout seen last week.

The push through trendline and $251.19 resistance brings expectations of further upside, with a bullish view in play unless price breaks below $234.35.

CRM-Weekly27821.pngSource: ProRealTime

Gap

Gap posted Q2 revenues and earnings that beat market estimates, although the success of the stock meant the share price saw little upside in response.

The weekly chart highlights the wider uptrend in play since the pandemic lows. While we are seeing further downside come into play this week, there is a strong chance we are looking at a retracement before we head higher once more.

With price currently respecting the 61.8% Fibonacci support level, bullish positions are favoured until price breaks below the 2021 lows of $19.09.

GPS-Weekly27821.pngSource: ProRealTime
  • Like 1
Link to comment
  • 2 weeks later...

Q2 US earnings season review: top 5 takeaways

US Reporting Season has almost come to an end for the US stock market, with S&P500 companies posting their strongest EPS in over a decade.

Q2 US Reporting Season review: earnings boom as S&P500 remains around all-time highsSource: Bloomberg
 
 Kyle Rodda | Market Analyst, Australia | Publication date: Tuesday 31 August 2021 

The market data that matters:

EPS Growth (YoY)

Revenue Growth (YoY)

% of positive surprises

Price Reaction (%)

Current P/E

86.50%

24.90%

86.80%

0.56%

26.9

What were the key takeaways from the reporting period?

Below we unpack the key lessons and learnings from the latest US earnings season.

EPS growth at its highest since 2009

Earnings per share growth smashed expectations for the quarter, with S&P500 companies posting their strongest growth in EPS in Q2 since Q4 2009, according to data compiles by Financial Data company FactSet. Earnings growth across the index for the quarter came-in at 86.5%, based on analysis by Bloomberg Intelligence, far exceeding the 65.9% tipped by analysts prior to the start of the reporting period. An above average number of companies also beat earnings estimates, with 86.8% of companies positing a positive surprise in Q2, well above the roughly 71% average over the past decade.

Cyclicals outperform the market

As expected, it was cyclical stocks that drove the strength in profit growth. Benefitting from the stimulus fuelled economic recovery of the first half of 2021, along with the base effects from the deep recession recorded in the corresponding quarter last year, sectors in the market tied to the so called reflation trade delivered huge year-over-year EPS growth. The industrials sector topped the market, delivering earnings growth of 407.3%m according to Bloomberg Intelligence, while consumer discretionary stocks posted 206.7% growth and financials posted 180.9% growth.

chart2.png

Cost pressures yet to erode margins

Rising costs, supply side disruptions and current and future inflation were major themes this earnings season. Echoing the evidence provided by recent macroeconomic data, the issues of higher costs and prices were a key talking point amongst the management of S&P500 companies, as the supply shock of the COVID-19 recession, along with widespread labour shortages identified widely as a key risk to future growth and earnings for companies. Fortunately for investors however, the effects of rising costs weren’t widely visible this reporting season, with companies on average maintaining high profit margins of 13.9% for the quarter, although analysts are tipping that figure to drop in coming quarters.

Read our guide to maximising trading success here.

Investors welcome the strong results

Overall, investors welcomed the historic results delivered by S&P500 companies this quarter. Earnings beats were rewarded by the market, with the average stock climbing 0.56% on the day of reported earnings, far exceeding the average positive surprise of recent quarters. Earnings for the next quarter were also upgraded by analysts from around 24% to 27% for Q3. Despite pockets of volatility during the reporting period, the S&P 500 has also responded positively to corporate results. The index is currently over 3% higher than where it was at the start of the reporting period.

S&P500’s uptrend remains intact as profits justify buying-the-dip

Q2 results has provided further impetus for the S&P500 to maintain its current uptrend, and push to record highs. Although price momentum has slowed somewhat, with pockets of volatility caused by concerns about Fed tapering and the spread of the Delta variant of COVID-19 resulting in small pullbacks, the index remains in a clear uptrend. The buy-the-dip mentality remains, and market sentiment remains bullish as it continues to knock-off fresh record highs. The S&P500’s 50-day MA remains they level to watch. Buyers have used the level as an entry point to “buy-the-dip”, with a break of it in the future the possible portent of a deeper correction

 

chart1.png

You can trade stocks, indices, shares, forex and more with IG

Create an IG Account or log in to your existing account to get started now.

Link to comment
  • 2 weeks later...

FedEx earnings expected to be strong, but…

Federal Express reports its fiscal first quarter after the closing bell on 21 September. While it is widely expected that revenues and profits will rise, traders are advised to watch the potential headwinds.

These are two-fold: the rise in the cost of fuel and a potential uptick in personnel costs.

As IGTV’s Jeremy Naylor explains these could take the stock further down.

https://www.ig.com/uk/market-insight-articles/fedex-earnings-expected-to-be-strong--but-210920

FedEx: continued execution of our strategies is producing strong earnings  growth | Post & Parcel

Link to comment
  • 2 weeks later...

Tesco interim earnings: what to expect

Tesco Plc (TSCO) is scheduled to release its interim earnings on Wednesday 6 October. The results will cover the 26 weeks to 28 August 2021. Video.

Tesco kan kreve tilbake sluttbonusen til eks-sjef – E24
 Jeremy Naylor | Writer, London | Publication date: Monday 04 October 2021 

How is Tesco placed?

The supermarket group is the UK’s largest with a 27% market share. Its closest rival is Sainsbury's with 15%, so it can clearly be seen that the company is way out ahead, however this advantage is under threat from the new incumbents such as Aldi and Lidl.

Then there are the online offerings of which Amazon is stealing market share for business to our door steps. It is now more concerned with the UK having shed its Thai and Malaysian units. Amazon has been paying down debt and is no longer being pressured to make any further big payments into its pension fund. This means that Tesco could be in a good position to return money to shareholders.

Where are the headwinds?

With all retail, competition in its rawest form comes from pricing. Driving down prices hits margins and when margins are driven down shareholders feel the pinch. Because of its size Tesco does have pricing power, but this has been tested recently with disruption in supply chains. This is beyond Tesco’s control, to a degree, but nonetheless it will be something that the board will have to address in its report.

Another area is the increasing costs of securing its own heavy goods vehicle (HGV) drivers. Bringing in cheap labour from abroad is one solution, however, this is proving difficult and so Tesco has had to increase its wages in this area to attract drivers.

Covid-19 is another unknown, however, some believe that this is now more under control, although remains a point of potential disruption.

Link to comment
  • 2 weeks later...

 

Earnings Season: Bank of America and Morgan Stanley Post Another Strong Quarter

KEY TALKING POINTS:

  • Bank of America reports earnings per share of $0.85, up 66% year on year.
  • Morgan Stanley trumps expectations with M&As seeing the biggest quarterly gain on record.

Ex-Bank of America employees allege 'extreme pressure' to sell credit cards  | American Banker

Bank of America: net income for the third quarter was $7.7 billion, with earnings per share coming in at $0.85 beating estimates of $0.71. Net interest income for the quarter was up 10% to $11.1 billion driven by strong deposit growth. The bank posted mixed results in the second quarter, with the revenues missing the mark, but Q3 revenues have picked up once again, increasing 12% to $22.8 billion, above estimates of $21.6 billion. Provisions for credit losses added $624 million on the back of reserve releases given improving economic conditions

Non-interest income was also a key contributor to earnings in the third quarter, up 14% to $11.7 billion, driven by record asset management fees, strong investment banking, and higher trading revenues. Q3 fixed income revenues were down 5%, driven by a weaker trading environment for mortgages and interest rate products, whilst equities revenue increased 33%, driven by growth in client financing activities, stronger trading performance and increased client activity.

Bank of America shares are trading 2.2% higher at $44.07 in the pre-market after the earnings release. Shares are up 83% year on year after a strong rebound from the pandemic lows, but they are still below their all-time highs ($54.70) seen in the years before the great financial crisis in 2008. Forecasts are still positive with most brokerages rating it a buy or hold, but short-term headwinds could keep the stock trading below recent highs into the last quarter of the year.

Bank of AmericaDaily Chart

Earnings Season: Bank of America and Morgan Stanley Post Another Strong Quarter

Source: Refinitiv

Morgan Stanley IM adds two managers to $18bn Global Brands fund - Citywire

 

Morgan Stanley: net revenue in the third quarter was $14.8 billion, up from $11.7 billion this time last year. Revenues were higher for key departments, including wealth management, investment banking and institutional securities. Quarterly adjusted EPS was $2.04 versus $1.69 estimated, with diluted earnings per shares coming in at $1,98, up from $1.66 this time last year. The bank benefited from global mergers and acquisitions, with deals reaching new highs at $1.52 trillion in the three months ended Sept. 27. This represents the highest quarterly growth ever, jumping 38% year-over-year.

MS stock is trading up 1.35% in the pre-market at $99.9, but is still 9% down from the highs seen at the end of September. Momentum continues to be strong but the recent pullback is resting on its ascending trendline which means bullish support could start to falter in the short term. We’re likely to see consolidation around current levels with a slightly bearish tilt before the stock achieves a new all-time high.

Morgan Stanley Daily Chart

Earnings Season: Bank of America and Morgan Stanley Post Another Strong Quarter

Source: Refinitiv

Learn more about the stock market basics here or download our free trading guides.

Written by Daniela Sabin Hathorn, Market Analyst, 14th October 2021. DailyFX

Link to comment

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      16,287
    • Total Posts
      77,938
    • Total Members
      64,544
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Abdelilah
    Joined 27/10/21 22:28
  • Posts

    • Very strange, when you think that they handle rights issues properly (including on CFD and spread-bet accounts) yet those similarly involve the holder having to make an election whether or not to take up their shares.
    • Guest Scotty
      " Elon Musk says he wants to build cars on Mars 'before I am dead' Musk is aiming to build city of 1 million inhabitants on Mars by 2050 through SpaceX   https://www.foxbusiness.com/lifestyle/elon-musk-build-cars-mars-dead
    • IG.com made me loose thousands of pounds as it does not pay the Hammerson enhanced scrip dividend. You are the only major share dealing company that does this. If I held shares with Hammerson in a dealing account on IG on 28 October 2021 you will not receive the enhanced scrip dividend. Last time it meant receiving a cash dividend of 0.2p rather than shares valued at 2p, a huge difference of 10 times. IG.com has done a rights issue Corporate Action for Hammerson before, so it is baffling why they are unable to complete this FTSE250 Corporate Action. Pathetic
×
×
  • Create New...