Q2
Earnings
Last
Week
BlackRock – worse than expected but kept capital inflows positive despite
political/macro uncertainty, extremely low yields and market volatility. All of
that made clients to deposit money with banks/cash instruments and fixed
income.
Brexit vote impact – institutional
investors rebalancing/redesigning portfolios while retail is pulling money out.
Worried about yields going lower but good Q2 earnings can justify highs of
stock market. Prefers Deutsche Borse/LSE headquarters to be based in
continental Europe over UK.
JPMorgan
Chase Inc – reported better than expected across
all apart from AUM decline, higher provisions and non-performing loans.
Consumer, corporate, commercial and investment banking better (both fixed
income/equity trading higher). Overall strong in retail, credit cards, loans
(especially mortgages & commercial real estate) what is a good sign for US
economy. Looking at increasing buyback program.
Brexit - negative impact on UK economy
now and in the future, also effecting US & global economy but to small
extent. Too early to speculate about reshuffling of UK’s operations and moving
them to continental Europe.
Citigroup
Inc – reported EPS higher/revenue lower than
expected, other mixed. Able to generate earnings despite volatile/uncertain
global environment, continues in focusing on core (almost all profits from
core), reducing non-core, improving efficiency, return on assets. Globalization
and its effects not fading away, will stay despite isolationist policies.
Brexit - was positioned for Brexit vote
volatility, developing story but no financial crisis resulting from it. Sees
lower rates longer.
Wells
Fargo & Co – results mixed to worse than
expected, Tier 1 common equity ratio under Basel III. Continues in improving
efficiency, non-performing assets lower, and provisions higher, solid growth in
loans, deposits and customers. Credit loan losses heavily due to energy and gas
book.
Brexit – lower impact as more US
focussed while US improving but impacting rates decisions.
Upcoming
Week
Monday
Bank
of America - estimated EPS 0.33, -24.9% Y/Y;
Revenue 20 371 mln
The similar questions as for Citigroup,
JPMorgan Chase and Wells Fargo would need BofA answer.
Charles
Schwab Corp – estimated EPS 0.30, +24.8% Y/Y;
Revenue 1 798 mln
Increased trading activity from Brexit,
asset reallocation due to low yields and higher market volatility may boost its
numbers. The retail and institutional figures will be reviewed by investors
closely.
IBM – estimated EPS 2.89, -24.8% Y/Y; Revenue 20 084 mln
Yahoo!
Inc – estimated EPS 0.09, -41.9% Y/Y; Revenue 840
mln
Tuesday
Philip
Morris International Inc – estimated EPS 1.19, -1.8%
Y/Y; Revenue 6 773 mln
Goldman
Sachs Group Inc – estimated EPS 3.08, -31.6% Y/Y;
Revenue 7 547 mln
Q2 results should are expected to be
boosted by higher trading activity over Brexit period and as the legal costs
from last year are off the table.
Interactive
Brokers Group Inc – estimated EPS 0.35, -20.9% Y/Y;
Revenue 377 mln
Similar comment as for Charles Schwab Corp…
TD
Ameritrade Holding Corp – estimated EPS 0.38, +4.4%
Y/Y; Revenue 829 mln
Similar comment as for Charles Schwab
Corp…
Johnson
& Johnson – estimated EPS 1.68, -1.8% Y/Y;
Revenue 17 982 mln
Expecting better sales of drugs
offsetting declines in other activities. Since the company generates
substantial sales internationally, the rising USD may have negative effect.
Novartis
AG (CH) – estimated EPS 1.19, -6.2% Y/Y; Revenue 12
160 mln
UnitedHealth
Group – estimated EPS 1.89, +15% Y/Y; Revenue 45
038 mln
Lockheed
Martin Corp – estimated EPS 2.93, -0.5% Y/Y;
Revenue 12 582 mln
Microsoft
Inc – estimated EPS 0.58, -6.1% Y/Y; Revenue 22 125
mln
Rising cloud business versus decline in
PC sales…which one will win?
Wednesday
American
Express Co – estimated EPS 1.96, +37.4% Y/Y;
Revenue 8 481 mln
Morgan
Stanley – estimated EPS 0.60, -23.8% Y/Y; Revenue 8
344 mln
Similar questions as for JPMorgan Chase,
Goldman Sachs and other brokers…
Abbott
Laboratories – estimated EPS 0.53, +2.7% Y/Y;
Revenue 5 248 mln
eBay
Inc – estimated EPS 0.42, -45.0% Y/Y; Revenue 2 172
mln
Intel
Corp – estimated EPS 0.53, -8.7% Y/Y; Revenue 13
554 mln
QUALCOMM
Inc – estimated EPS 0.97, -1.6% Y/Y; Revenue 5 588
mln
SAP SE (GE) – estimated EPS 0.87, +8.3% Y/Y; Revenue 5 223 mln
Thursday
Daimler
AG (GE) – estimated EPS 2.01, -5.3% Y/Y; Revenue 38
910 mln
General
Motors – estimated EPS 1.49, +15.4% Y/Y; Revenue 38
550 mln
Why are shares declining when company’s
profits are on the rise? Market may be feeling that the cyclicals are losing
steams what is also underlined by GM losing market share in its home market.
Johnson
Controls Inc – estimated EPS 1.03, +13.3% Y/Y;
Revenue 9 618 mln
Biogen
Inc – estimated EPS 4.70, +11.3% Y/Y; Revenue 2 795
mln
At attractive levels with ROIC at 34%
and revenue growing at 11% (last quarter) vs 17% past 5 years. The company has
a strong business and is looking at positive momentum in its Alzheimer pipeline
despite recent negative drug updates. Of note are also upcoming trials of
Alzheimer drugs in H2, putting the company high risk/reward pool. From
technical perspective, the stocks corrected 50% from peak in early 2015.
Roche
Holding AG (CH) – estimated EPS 7.41, ---% Y/Y;
Revenue 12 307 mln
Southwest
Airlines Co – estimated EPS 1.21, +17.0% Y/Y;
Revenue 5 403 mln
Union
Pacific Corp – estimated EPS 1.16, -10.5% Y/Y;
Revenue 4 789 mln
Starbucks
Corp – estimated EPS 0.49, +16.0% Y/Y; Revenue 5
341 mln
Swatch
Group AG (CH) – estimated EPS 7.58, -23.9% Y/Y;
Revenue 3 906 mln
Unilever
PLC (GB) – estimated EPS 0.92, +1.4% Y/Y; Revenue 26
594 mln
Schlumberger
Ltd – estimated EPS 0.21, -75.8% Y/Y; Revenue 7 136 mln
E*TRADE
Financial Corp – estimated EPS 0.38, 36.7% Y/Y;
Revenue 470 mln
Visa Inc – estimated EPS 0.67, -9.9% Y/Y; Revenue 3 639 mln
Not only profits will be reviewed but
after Brexit situation in merger with its European activites will be too.
AT&T
Inc – estimated EPS 0.72, +3.8% Y/Y; Revenue 40 626
mln
Friday
Whirlpool
Corp – estimated EPS 3.37, +24.7% Y/Y; Revenue 5
132 mln
Valeant
Corp – estimated EPS 1.57, -38.7% Y/Y; Revenue 2
478 mln
FDA in its preliminary review said that
suicide risks from its psoriasis drug are hard to assess due to limited data.
General
Electric Co – estimated EPS 0.46, +63.2% Y/Y;
Revenue 31 354 mln
Honeywell
International Inc – estimated EPS 1.64, +8.7% Y/Y;
Revenue 10 128 mln
Syngenta
AG (CH) – estimated EPS 13.83, -6.0% Y/Y; Revenue 7
133 mln
Good luck Champs!
Mr Hawk
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of the past and current economic and capital market environment. It is not an
investment advice and should not be viewed that way at all, and the creators of
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trading, where despite this disclaimer someone would consider this material as
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