In this article, we will take a look at the 10 earnings reports grabbing everyone’s attention. You can skip our detailed analysis of these companies and go directly to the 5 Earnings Reports Grabbing Everyone’s Attention.
Leading U.S. banks, including Morgan Stanley (NYSE:MS), The Goldman Sachs Group, Inc. (NYSE:GS) and Citigroup Inc. (NYSE:C), recently announced financial results for the first quarter.
Citigroup shares rose over 1.5 percent after beating expectations. On the other hand, shares of Goldman Sachs and Citigroup didn’t show any significant movement despite posting better-than-expected results.
Many other companies, including healthcare giant UnitedHealth Group Incorporated (NYSE:UNH) and semiconductor behemoth Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), also traded on unusual volume after posting their earnings reports.
While most stocks reporting results this week exceeded expectations, all three major U.S. indices closed lower at the end of the trading session on Thursday, April 14. The S&P 500 fell 1.21 percent, the Dow Jones Industrial Average slipped 0.33 percent, and Nasdaq Composite dropped 2.14 percent.
Earnings Reports Grabbing Everyone’s Attention
10. State Street Corporation (NYSE:STT)
Number of Hedge Fund Holders: 39
Shares of State Street Corporation (NYSE:STT) hit a new 52-week low of $75.65 on Thursday, April 14, 2022, despite beating profit and sales expectations for the first quarter. The Massachusetts-based financial services company reported adjusted earnings of $1.59 per share, ahead of the consensus of $1.47 per share.
Revenue for the quarter came in at $3.08 billion, while analysts were expecting State Street Corporation (NYSE:STT) to generate revenue of $3.04 billion. Fee revenue for the quarter increased to $2.57 billion from $2.48 billion in the year-ago period.
In comparison, net interest income increased to $509 million versus $467 million in the same period last year. State Street Corporation (NYSE:STT) attributed the surge to higher interest rates and growth in its investment portfolio and loan balances.
Discussing the results, CEO Ron O’Hanley said in a statement:
“While State Street’s exposure to Russia and Ukraine is minimal, the war alongside other macroeconomic factors presented new challenges to global markets in the first quarter. Even in this challenging market environment, State Street posted another strong quarter and remains focused on delivering for our shareholders, clients, and employees.”
9. The PNC Financial Services Group, Inc. (NYSE:PNC)
Number of Hedge Fund Holders: 40
Shares of The PNC Financial Services Group, Inc. (NYSE:PNC) recently fell to a nearly one-year low following its mixed financial results for the first quarter. The Pennsylvania-based bank holding company earned $3.29 per share on an adjusted basis, down from $4.11 per share in the year-ago period.
In addition, The PNC Financial Services Group, Inc. (NYSE:PNC) posted revenue of $4.69 billion, up 11 percent from the same period of 2021. Analysts were looking for earnings of $2.75 per share on revenue of $4.78 billion.
If we look at the key growth indicators, net interest income for the quarter jumped 19 percent on a year-over-year basis to $2.8 billion, while non-interest income inched up one percent to $1.88 billion.
Among other updates, The PNC Financial Services Group, Inc. (NYSE:PNC) reported that average loans rose 22 percent versus last year to $290.7 billion. In comparison, average deposits jumped 24 percent to $453.3 billion, primarily driven by growth in customer deposits during the quarter.
Like The PNC Financial Services Group, Inc. (NYSE:PNC), Morgan Stanley (NYSE:MS), The Goldman Sachs Group, Inc. (NYSE:GS) and Citigroup Inc. (NYSE:C) also came into the spotlight after posting their earnings reports.
8. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 46
Shares of U.S. Bancorp (NYSE:USB) rose over four percent on Thursday, April 14, 2022, after announcing better-than-expected profit and revenue for the first quarter. The Minnesota-based bank holding company reported earnings of 99 cents per share, significantly lower than $1.45 per share in the year-ago quarter but above expectations of 94 cents.
Revenue came in at $5.6 billion, up from $5.47 billion in the first quarter of 2021. Analysts expected U.S. Bancorp (NYSE:USB) to post revenue of $5.55 billion. Net interest income, a key growth indicator in banking, increased to $3.2 billion, from $3.01 billion in the year-ago period.
In addition, average total loans for the quarter rose 6.5 percent on a year-over-year basis to $19 billion, helped by growth in residential mortgages and higher commercial and retail loans in the quarter. Moreover, U.S. Bancorp (NYSE:USB) reported that average total deposits also surged 6.5 percent versus last year to $27.8 billion.
Speaking on the results, CEO Andy Cecere said in a statement:
“Our results benefitted from healthy trends in consumer and business activity. We saw very strong loan growth, which drove solid growth in net interest income. Our fee revenue growth was supported by improving business activity and new business wins. Notably, we continued to see good momentum in our payments businesses reflecting both continued cyclical recovery in pandemic impacted industries, particularly travel and entertainment sectors, as well as the benefit from previous investments.”
7. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 48
Ally Financial Inc. (NYSE:ALLY) is a digital financial services company based in Detroit. Its services range from car financing and online banking to vehicle insurance and mortgage loans. It also operates an electronic trading platform for investors where they can trade various financial assets.
Shares of Ally Financial Inc. (NYSE:ALLY) recently fell to a nearly one-month low after its first-quarter profit decreased on a year-over-year basis. The company reported adjusted earnings of $2.03 per share, down from $2.09 per share in the first quarter of 2021.
On the bright side, revenue for the quarter increased 15 percent versus last year to $2.21 billion. The results were better than the consensus of $1.95 per share for earnings and $2.13 billion for revenue.
Among other updates, Ally Financial Inc. (NYSE:ALLY) reported that its net financing revenue increased to $1.69 billion, from $1.37 billion in the same period last year. The surge was primarily driven by strength in auto pricing and lower funding expenses.
Like Ally Financial Inc. (NYSE:ALLY), investors are also closely observing Morgan Stanley (NYSE:MS), The Goldman Sachs Group, Inc. (NYSE:GS) and Citigroup Inc. (NYSE:C) following their earnings reports.
6. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 52
The Progressive Corporation (NYSE:PGR) is best known as the leading commercial insurer in the U.S. It insures passenger cars, bikes, trailers, boats, and recreational vehicles (RVs), among others. It also provides insurance for homes, life, and pets.
Shares of The Progressive Corporation (NYSE:PGR) slipped 1.58 percent on Thursday, April 14, 2022, following its weak financial performance for the first quarter. The company reported earnings of 52 cents per share, well below $2.51 per share in the year-ago period.
Revenue for the quarter rose three percent on a year-over-year basis to $11.84 billion. Analysts were expecting The Progressive Corporation (NYSE:PGR) to report earnings of $1.24 per share on revenue of $13.33 billion.
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Disclosure: None. 10 Earnings Reports Grabbing Everyone’s Attention is originally published on Insider Monkey.
