Coffee With Greta: More Big Bank Earnings
DJIA Futures: +33 (+0.1%)
SPX Futures: +21 (+0.5%)
NASDAQ Futures: +110 (+0.8%)
Good morning friends!
Futures are mostly higher as traders digest the latest batch of earnings.
Let’s get right to it!
Bank of America Earnings Beat
Bank of America (BAC) shares are up 2.3% ahead of the open after beating Q1 expectations on the top and bottom line.
Here’s how the consumer bank’s results compared to analysts’ expectations:
- EPS: $0.94 vs $0.82 expected
- Revenue: $26.39 billion vs $25.13 billion expected
Net interest income jumped 25% year over year due to higher interest rates.
CEO Brian Moynihan said, “Every business segment performed well as we grew client relationships and accounts organically and at a strong pace. Our results demonstrate how our company’s decade-long commitment to responsible growth helped to provide stability in changing economic environments.”
Bank of America boosted its loan-loss reserves by $931 million during the quarter.
Goldman Sachs Earnings Mixed
Goldman Sachs (GS) shares are slipping 3.4% in premarket trade after reporting mixed Q1 results.
Here’s how the investment bank’s results compared to analysts’ estimates:
- EPS: $8.79 vs $8.10 expected
- Revenue: $12.22 billion vs $12.79 billion expected
Profit dropped 18% year over year while revenue fell 5%.
The revenue miss was blamed on a $470 million hit the bank took tied to the sale of consumer loans.
Goldman’s fixed income trading revenue dropped 17% to $3.93 billion, about $230 million short of estimates.
Equities trading revenue slipped 7% to $3.02 billion vs $2.9 billion expected.
Investment banking revenue tumbled 26% to $1.58 billion but topped estimates of $1.44 billion.
Johnson & Johnson Beats Expectations, Hikes Outlook
Johnson & Johnson (JNJ) shares are up 1.4% ahead of the open after beating Q1 expectations on the top and bottom line.
Here’s how the pharmaceutical giant’s results compared to analysts’ estimates:
- Adjusted EPS: $2.68 vs $2.50 expected
- Revenue: $24.75 billion vs $23.67 billion expected
The company also raised its full-year outlook following the beat.
Johnson & Johnson now expects 2023 revenue of $97.9 billion to $98.9 billion, up by about $1 billion from its previous outlook.
The company expects full-year EPS of $10.60 to $10.70 vs $10.45 to $10.65 previously.
The CEO told CNBC, If you think about how we started the year and guidance in January, we were responsibly cautious. First-quarter growth was much stronger than even fourth-quarter growth for all three business units, and our positions kind of change to responsibly optimistic at this point. We feel very good about 2023.”
Housing Starts, Building Permits Fall
New home construction in the U.S. fell less than expected in March.
The Census Bureau reported housing starts fell 0.8% last month to a seasonally adjusted annual rate of 1.42 million units.
That was down from 1.43 million in February but higher than 1.40 million expected.
Starts were down 17.2% year over year.
Single-family starts rose 2.7% while multi-family starts tumbled 6.7%.
The slowdown is expected to continue as building permits dropped more than expected.
The number of new permits issued last month dropped 8.8% to a seasonally adjusted annual rate of 1.41 million units vs 1.45 million expected.
Permits plunged 24.8% year over year.
Single-family permits rose 4.1% monthly while multi-family permits dropped 24.3%.