Text Resize
Subsribe to RSS Feed

Monday June 24, 2024

Finance News


Bank of America Reports Earnings

Bank of America Corporation (BAC) released its first quarter results on Tuesday, April 18. Despite surpassing analysts' expected profit and revenue, shares dropped 1.4% after the release of the report.

Revenue came in at $26.3 billion during the first quarter, up 13% from $23.2 billion at this time last year. The results exceeded analysts' expectation of $25.1 billion for the quarter.

"Every business segment performed well as we grew client relationships and accounts organically and at a strong pace," said Bank of America CEO, Brian Moynihan. "Our results demonstrate how our company's decade-long commitment to responsible growth helped to provide stability in changing economic environments."

The company reported net income of $8.2 billion for the quarter or $0.94 per diluted share. This is up 15% from $7.1 billion or $0.80 per diluted share in the same quarter last year and better than analysts' estimates of $0.82 per diluted share.

Bank of America's Consumer Banking segment brought in net income of $3.1 billion during the quarter. In addition, the segment added 130,000 new Consumer checking accounts in the first quarter of fiscal 2023, marking it the seventeenth consecutive quarter of growth. The segment noted a 3% or $30 billion decrease in deposits for the quarter but remained above $1 trillion. The company's Digital Usage segment saw a record 45 million active digital banking users and produced $1.8 million in digital sales.

Bank of America Corporation (BAC) shares ended the week at $29.87, relatively flat for the week.

United Airlines Releases Earnings Report

United Airlines Holdings, Inc. (UAL) posted its first quarter earnings report on Tuesday, April 18. The airline company reported record revenue, causing their stock to rise more than 6% following the release of the report.

The company reported total operating revenue of $11.43 billion for the quarter, up 51% from $7.57 billion during the same quarter last year and in line with analysts' expected revenue of $11.42 billion.

"I am extremely proud of the United team's performance during the first quarter of 2023," said United Airlines CEO, Scott Kirby. "Our industry-leading operational performance contributed to an all-time high operating cash flow in the first quarter and keeps us on track to achieve our cost targets for the full year."

United posted a quarterly net loss of $194 million or $0.59 per adjusted share. During the same quarter last year, the company reported a quarterly net loss of $1.38 billion or $4.24 per adjusted share.

During the first quarter, United's total revenue per available seat mile (TRASM) increased 22.5% compared to its first quarter of fiscal 2022. United airlines announced the largest South Pacific network expansion in aviation history going to and from the continental U.S. The airline is the only North-American carrier to currently provide a direct flight from San Francisco, CA, U.S. to Christchurch, New Zealand. The company recently made a $15 million investment in Svante, a carbon capture technology company that has the potential to turn carbon dioxide into sustainable aviation fuel in hopes of becoming entirely environmentally sustainable by the year 2050. For the second quarter, United projects profits of $3.50 to $4.00 per share and revenue to increase 14% to 16% from last year.

United Airlines Holdings, Inc. (UAL) shares ended the week at $44.95, up 6% for the week.

American Express Reports Earnings

American Express Company (AXP) released its first quarter earnings on Thursday April 20. Revenue reflected stronger-than-expected growth, however shares fell almost 4% after the report's release.

The company reported revenue of $14.3 billion, up 22% from $11.7 billion reported at this time last year. This was above analysts estimates of $14.03 billion for the quarter.

"Our first-quarter results reflect strong growth in Card Member spending and continued high engagement with our premium products, tracking with the full-year 2023 guidance we provided in January," said American Express CEO, Stephen Squeri. "Based on our performance to date and the momentum we see in our business, we remain confident in our ability to achieve our longer-term growth plan aspirations."

American Express reported net income of $1.8 billion for the quarter or $2.40 per adjusted share. This is down 12% from last year's first quarter earnings of $2.1 billion or $2.73 per adjusted share and missed analysts' estimates of $2.60 per adjusted share.

The financial services company delivered stronger-than-expected growth in card fee revenue. American Express added 3.4 million new card member accounts in the quarter, with U.S. Consumer Platinum and Gold, U.S. Business Platinum and Delta co-brand account acquisitions all reaching record levels. Retail deposits grew by $11 billion in the quarter and new card growth and higher usage of travel-related benefits provided strong card member spending.

American Express Company (AXP) shares ended the week at $163.78, up 1% for the week.

Treasury Yields Fluctuate

Yields on U.S. Treasuries rose earlier in the week as investors assessed global economic data and the effects it may cause with the Federal Reserve's monetary policy. Yields fell towards the end of the week as reports signal a larger-than-expected economic slowdown.

On Wednesday, the Office for National Statistics announced the U.K. consumer price index (CPI) rose over 10% annually, exceeding analysts' expectations of 9.8%. On a monthly basis, U.K. CPI rose 0.8%, over the 0.5% anticipated by economists.

"[Treasurys] were under pressure overnight in the wake of higher-than-expected U.K. inflation print," said BMO Capital Markets strategists, Ian Lyngen and Ben Jeffery. "As a result, the market is pricing in a higher probability that the Bank of England delivers another hike when the decision is made on May 11."

The benchmark 10-year Treasury note yield opened the week of April 17 at 3.52% and traded as high as 3.64% on Wednesday. The 30-year Treasury bond opened the week at 3.74% and traded as high as 3.84% on Wednesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased 5,000 to 245,000 for the week ending April 15. Continuing unemployment claims increased 61,000, reaching 1.87 million.

"While the [claims] levels are still historically low, the number of people collecting unemployment benefits has definitely been on the rise this year, another signal that the labor market, though still hot, is coming back toward a more balanced/normal state,'' said chief U.S. economist at Santander, Stephen Stanley.

The 10-year Treasury note yield finished the week of 4/21 at 3.58%, while the 30-year Treasury note yield finished the week at 3.78%.

Mortgage Rates Move Upward

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, April 20. The survey showed mortgage rates rose for the first time in over a month.

This week, the 30-year fixed rate mortgage averaged 6.39%, up from last week's average of 6.27%. Last year at this time, the 30-year fixed rate mortgage averaged 5.11%.

The 15-year fixed rate mortgage averaged 5.76% this week, up from 5.54% last week. During the same week last year, the 15-year fixed rate mortgage averaged 4.38%.

"For the first time in over a month, mortgage rates moved up due to shifting market expectations," said Freddie Mac's Chief Economist, Sam Khater. "Home prices have stabilized somewhat, but with supply tight and rates stuck above 6%, affordable housing continues to be a serious issue for many potential homebuyers. Unless rates drop into the mid 5% range, demand will only modestly recover."

Based on published national averages, the savings rate was 0.39% as of 4/17. The one-year CD averaged 1.54%.

Editor's Note: The publicly available financial information is offered as a helpful and informative service to our friends. This article is not an endorsement of any company, product or service.

Published April 21, 2023
Subsribe to RSS Feed

Previous Articles

CarMax Earnings Stall

Acuity Brands Posts Earnings Reports

Lululemon Reports Earnings

Nike Reports Quarterly Results

Adobe Releases Earnings

  • Bequests
    Joe and Anna have been faithful supporters of our organization. They believe it is important to help further our mission.
  • Using a Beneficiary Designation to Make a Gift to Charity
    Using a Beneficiary Designation to Make a Gift to Charity
    Joanne and her late husband Hal had been longtime supporters of our organization. Recently, Joanne's children encouraged...
  • Fixed Income for Retirement
    Fixed Income for Retirement
    After working for decades as a pediatrician in a small town, Patricia is ready to retire.
  • Tax-Free Sale
    Tax-Free Sale
    Howard and Lynn were both age 55 when they purchased some vacant land a few miles outside of town. They thought real estate would be a good investment that could be sold later for a profit.
  • Capital Gains Tax Bypassed
    Capital Gains Tax Bypassed
    Peter and Gail were nearing retirement. Over the years, with the help of their financial advisor, they made solid investments in securities and built a sizable portfolio.
  • Peace of Mind Gift Annuity
    Peace of Mind Gift Annuity
    Many years ago, Clara bought a home. Since she was very pleased with her home, she bought stock in the company that built the home.
  • Endowment Gift
    Endowment Gift
    Pat and Shelly were recently married. They both had been dedicated volunteers at their favorite charity for many years.
  • Sale and Unitrust
    Sale and Unitrust
    Gene and Carol purchased stock in a small medical service company several years ago. The company has done well.
  • The Retirement Unitrust
    The Retirement Unitrust
    Mary grew up on a farm. When her parents passed away, she and her husband Bill inherited the farm.
  • Property Turns Into Income
    Property Turns Into Income
    Miranda lived in the family home where she and her spouse had raised their three children. After her spouse passed away, Miranda found it increasingly difficult to care for her property.
  • Flexible Deferred Gift Annuity
    Flexible Deferred Gift Annuity
    Luis is a 54-year-old executive at a large healthcare company. He purchased company stock during years when the stock price was low, and now the stock has grown substantially in value.
  • Part Gift and Part Sale
    Part Gift and Part Sale
    Susan and Kevin bought a vacant lot along Lake Michigan many years ago. They had planned to build a second home so that their family could spend their summers along the lake.
  • Current Gifts
    Current Gifts
    As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving.
  • Gift of a Bank Account When No Longer Needed (POD)
    Gift of a Bank Account When No Longer Needed (POD)
    Keith has been a faithful supporter of The Marfan Foundation and makes regular gifts to support our work.
  • Transferable on Death (TOD) Gifts
    Transferable on Death (TOD) Gifts
    Harold and Jeanne married after meeting at an event The Marfan Foundation held for our donors. They wanted to leave a legacy gift...
  • A Bequest to Further Good Work
    A Bequest to Further Good Work
    Nancy and David were dedicated volunteers. Over the years, they had seen many individuals helped by the good work of their favorite charity.
  • Deferred Gift Annuity
    Deferred Gift Annuity
    Several years ago, Larry and Allison invested $30,000 in what they believed to be an attractive stock.
  • What Will You Do with Your Unspent Retirement Savings?
    What Will You Do with Your Unspent Retirement Savings?
    Michael and Kelly were retired engineers with two adult children. They owned a home, some stocks, and IRAs.
  • Gift Annuity for Real Estate
    Gift Annuity for Real Estate
    Jonathan purchased his home many years ago for $80,000. The home is now worth $420,000. Jonathan wants to sell his home and buy a condo for $130,000.
  • A Bequest to Save Taxes
    A Bequest to Save Taxes
    Thomas was a widower who had a great love for our organization. As an individual who had directly benefited from our work, Thomas wanted to thank us with a gift from his estate.
  • Leading for the Future
    Leading for the Future
    Luke and Cynthia spent many years volunteering and supporting their favorite charity. They wanted to give back in a way that would help fulfill its mission.
  • Give it Twice Trust
    Give it Twice Trust
    While visiting her favorite charity's website, June came across the idea of a give it twice trust. She contacted the charity for more information.
  • Providing for Our Children's Future
    Providing for Our Children's Future
    Ron and Kathy worked for many years building their nest egg for retirement.
  • Bequest of Insurance
    Bequest of Insurance
    Marla and Wayne purchased a life insurance policy many years ago to create security for their children's future.
  • Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
    Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
    We have all heard the saying "You can't have your cake and eat it too." This phrase describes a situation where we want two good things at the same time when that isn't possible.