Before markets opened Wednesday, JPMorgan beat a modest revenue estimate and missed on profits. The stock closed down more than 3% for the day. Delta Air Lines posted a tiny profit and a solid revenue beat to close up more than 6%. BlackRock missed the consensus revenue estimate but beat the earnings estimate by more than 7%. The shares closed down by less than 1%. Bed Bath & Beyond missed on both profits and revenues, and the stock closed down by just 1.2%.
We had previewed seven companies that reported results before markets opened Thursday. Taiwan Semiconductor beat both profit and revenue estimates and guided current quarter revenue higher. The stock added more than 4% on Wednesday and traded up about 1.5% in Thursday’s premarket.
UnitedHealth also beat top-line and bottom-line estimates and raised full-year guidance, but not by enough to move the stock price much. Shares traded up by about 0.6% early Thursday.
Wells Fargo missed on revenue but topped the earnings estimate by 10%. Shares were trading up about 0.6% in the premarket.
Citigroup hammered the consensus profit estimate by 43% and also beat the revenue estimate, although year-over-year revenue was down by 2.6%. The stock traded up by about 1.1% in Thursday’s premarket session.
Goldman Sachs beat the consensus earnings estimate by $1.78 (19.8%) and the revenue estimate by 9.9%. Revenue fell by nearly 27% year over year, however. The stock traded up by about 2% in the premarket session Thursday.
Morgan Stanley beat the consensus earnings estimate by 17.4%, but revenue sank by nearly 6% year over year. The stock traded up by about 2% early Thursday morning.
Rite Aid posted a much larger than expected loss but beat the revenue estimate and guided current year revenue in-line with expectations. Shares were up nearly 8% in premarket trading.
Just a reminder that U.S. markets are closed Friday and that there are no earnings releases scheduled.
Here are four more financial sector companies set to report March-quarter results first thing Monday morning.
24/7 Wall St.Bank of America
The share price of Bank of America Corp. (NYSE: BAC) bounced to a 52-week high in February, but it has since pulled back and is virtually unchanged over the past 12 months. Like other big banks, BofA is expected to put up bigger revenue numbers this year but lower profits than in 2021. While it may be difficult for BofA and the other big banks to look too far into the future in these uncertain times, analysts and investors will be paying close attention to any comments about the geopolitical (Russian invasion of Ukraine) and economic (inflation) challenges.
Analysts are bullish on the stock with 16 of 26 having a Buy or Strong Buy rating. The rest rate the shares at Hold. At a recent price of around $39.20 a share, the implied gain based on a median price target of $49.50 is 26.3%. At the high price target of $66.00, the implied upside is 68.4%.
First-quarter revenue is forecast at $23.06 billion, which would be up by 4.5% sequentially and 1.0% higher year over year. Adjusted earnings per share (EPS) are expected to come in at $0.75, a drop of 9% sequentially and 12.9% year over year. For the full 2022 fiscal year, analysts currently forecast EPS of $3.27, down 8.5%, on revenue of $89.11 billion, up about 6%.
The stock trades at 12.0 times expected 2022 EPS, 10.2 times estimated 2023 earnings of $3.85 and 9.0 times estimated 2024 earnings of $4.34 per share. The stock’s 52-week trading range is $36.51 to $50.11. BofA pays an annual dividend of $0.78 (yield of 2.14%). Total shareholder return for the past 12 months was negative 0.4%.
BNY Mellon
Bank of New York Mellon Corp. (NYSE: BK) stock has added less than 1% to its share price over the past 12 months. It posted a 52-week high in early February and has dropped 25% since then. About half the bank’s revenue comes from its custodial and other technical services, and it expects to see organic growth in fee revenue from these complex offerings.
Late last month the bank signed a deal with Circle Internet Financial to provide custodial services for Circle’s USD Coin, a stablecoin pegged to the U.S. dollar. A month earlier, it completed a deal with Grayscale, the world’s largest digital currency manager, to provide accounting and administrative services for the Grayscale Bitcoin Trust.
Of the 18 analysts covering the stock, half rate the shares Buy or Strong Buy and the other half have Hold ratings. The consensus price target is $60.00, and at a share price of around $47.50, the upside potential is around 26.3%. At the high target of $74.00, the potential upside is more than 55%.
First-quarter revenue is forecast at $3.94 billion, down by 1.4% sequentially but up by less than 1% year over year. Adjusted EPS are expected to come in at $0.85, a drop of 17.9% sequentially and 12.4% year over year. For full fiscal 2022, analysts currently forecast EPS of $4.57, up 9.3%, on revenue of $16.73 billion, up 5%.
The stock trades at 10.4 times expected 2022 EPS, 8.9 times estimated 2023 earnings of $5.52 and 8.0 times estimated 2024 earnings of $5.95 per share. The stock’s 52-week range is $45.80 to $64.63. BNY Mellon pays an annual dividend of $1.30 (yield of 2.85%). Total shareholder return for the past 12 months was negative 0.5%.
Charles Schwab
Charles Schwab Corp. (NYSE: SCHW) has grown its price by about 20% over the past 12 months. Last week, the discount brokerage settled a lawsuit brought by T.D. Ameritrade shareholders for $31.5 million. The shareholders had filed suit alleging that Schwab had cut the value of their shares at the time of the October 2020 acquisition of its business. That merger, though, is set to begin paying off over the course of the next couple of years.
Analysts are mostly bullish on the stock, with 11 of 17 rating the shares a Buy or Strong Buy and the rest giving the stock a Hold rating. At a share price of around $80.10, the upside potential based on a median price target of $103.50 is 29.2%. At the high target of $132.00, the upside potential reaches 64.8%.
First-quarter revenue is forecast at $4.38 billion, up 2.6% sequentially and about 2.5% year over year. Adjusted EPS are forecast to dip by 1.4% sequentially but rise by 1.2% year over year. The current estimates for fiscal 2022 call for revenue of $21.22 billion, up nearly 14.6%, and EPS of $4.12, up nearly 27%.
Schwab trades at 19.4 times expected 2022 EPS, 15.3 times estimated 2023 earnings of $5.22 and 13.7 times estimated 2024 earnings of $5.84 per share. The stock’s 52-week range is $63.46 to $96.24. The company pays an annual dividend of $0.72 (yield of 1%). Total shareholder return for the past year is 19.4%.
Synchrony
Shares of Synchrony Financial (NYSE: SYF) have dropped more than 12% in the past 12 months. The stock hit a 52-week low in early March and has bounced a bit since. Synchrony, which issues store and store-branded credit cards, depends on consumer spending, and a lot of analysts and investors are wary given increasing inflation. Rising interest rates will help the company, but only if consumers are willing to spend and the Russian invasion of Ukraine fails to derail that spending.
Of 21 analysts covering the firm, 15 have a Buy or a Strong Buy rating and the rest rate the stock at Hold. At a share price of around $36.90, the implied gain based on a median price target of $49.50 is 34%. At the high price target of $65.00, the upside potential on the stock is 76.2%.
First-quarter revenue is forecast at $2.66 billion, down 2.6% sequentially but about 3.1% higher year over year. Adjusted EPS are forecast to rise by 16.4% sequentially but decline by 9.8% year over year. The current estimates for the 2022 fiscal year call for revenue of $11.23 billion, up 10.2%, and EPS of $5.65, down 17.7%.
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