Wells Fargo on Friday reported a 9% decline in net interest income, even though its second-quarter earnings and revenue exceeded Wall Street expectations.
Here’s what the bank did compared with Wall Street estimates, based on a survey of analysts by LSEG:
Earnings per share: $1.33 versus $1.29 cents expected
Revenue: $20.69 billion versus $20.29 billion expected
The San Francisco-based lender recorded $11.92 billion in net interest income, a key measure of what a bank makes on lending, marking a 9% year-over-year decline. That was below the $12.12 billion expected by analysts, according to FactSet. The bank said the drop was due to the impact of higher interest rates on funding costs.
Shares of Wells Fargo fell nearly 7% in Friday’s trading.
“We continued to see growth in our fee-based revenue offsetting an expected decline in net interest income,” CEO Charlie Scharf said in a statement. “The investments we have been making allowed us to take advantage of the market activity in the quarter with strong performance in investment advisory, trading, and investment banking fees.”
Wells Fargo saw net income dip to $4.91 billion, or $1.33 per share, in the second quarter, from $4.94 billion, or $1.25 per share, during the same quarter a year ago. The bank set aside $1.24 billion as provision for credit losses, which included a modest decrease in the allowance for those losses. Revenue rose to $20.69 billion in the quarter.
The bank repurchased more than $12 billion of common stock during the first half of 2024 and it expects to increase the third-quarter dividend by 14%.
The stock is up more than 22% this year, outperforming the S&P 500.
Huntington Bancshares (NASDAQ:HBAN – Get Free Report) will be announcing its earnings results before the market opens on Friday, July 19th. Analysts expect the company to announce earnings of $0.29 per share for the quarter. Persons that are interested in registering for the company’s earnings conference call can do so using this link.
Huntington Bancshares (NASDAQ:HBAN – Get Free Report) last announced its quarterly earnings results on Friday, April 19th. The bank reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.25 by $0.03. The firm had revenue of $2.85 billion during the quarter, compared to analyst estimates of $1.74 billion. Huntington Bancshares had a return on equity of 11.99% and a net margin of 15.86%. During the same quarter in the previous year, the business earned $0.38 earnings per share. On average, analysts expect Huntington Bancshares to post $1 EPS for the current fiscal year and $1 EPS for the next fiscal year.
Huntington Bancshares Stock Up 3.0 %
Huntington Bancshares stock opened at $13.46 on Friday. The business has a fifty day moving average of $13.33 and a two-hundred day moving average of $13.17. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.88. The firm has a market cap of $19.51 billion, a P/E ratio of 12.13, a P/E/G ratio of 2.48 and a beta of 1.06. Huntington Bancshares has a twelve month low of $9.25 and a twelve month high of $14.30.
Huntington Bancshares Dividend Announcement
The firm also recently declared a quarterly dividend, which was paid on Monday, July 1st. Stockholders of record on Monday, June 17th were given a dividend of $0.155 per share. This represents a $0.62 dividend on an annualized basis and a dividend yield of 4.61%. The ex-dividend date was Monday, June 17th. Huntington Bancshares’s payout ratio is presently 55.86%.
Insider Buying and Selling at Huntington Bancshares
In other Huntington Bancshares news, VP Brantley J. Standridge sold 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, April 23rd. The shares were sold at an average price of $13.60, for a total value of $680,000.00. Following the completion of the transaction, the vice president now owns 385,409 shares of the company’s stock, valued at approximately $5,241,562.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other news, insider Kendall A. Kowalski sold 15,948 shares of Huntington Bancshares stock in a transaction on Wednesday, April 24th. The shares were sold at an average price of $13.47, for a total transaction of $214,819.56. Following the completion of the sale, the insider now directly owns 21,102 shares of the company’s stock, valued at approximately $284,243.94. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Brantley J. Standridge sold 50,000 shares of Huntington Bancshares stock in a transaction on Tuesday, April 23rd. The stock was sold at an average price of $13.60, for a total transaction of $680,000.00. Following the sale, the vice president now directly owns 385,409 shares of the company’s stock, valued at $5,241,562.40. The disclosure for this sale can be found here. Insiders sold 157,829 shares of company stock valued at $2,148,623 in the last 90 days. Company insiders own 0.92% of the company’s stock.
Analyst Ratings Changes
Several equities analysts recently issued reports on HBAN shares. Keefe, Bruyette & Woods cut their target price on Huntington Bancshares from $15.00 to $14.50 and set a “market perform” rating on the stock in a research report on Tuesday. UBS Group lowered their target price on shares of Huntington Bancshares from $16.00 to $15.00 and set a “buy” rating on the stock in a research note on Thursday, June 13th. JPMorgan Chase & Co. lowered their target price on shares of Huntington Bancshares from $17.00 to $16.50 and set an “overweight” rating on the stock in a research note on Thursday, June 27th. Jefferies Financial Group decreased their target price on shares of Huntington Bancshares from $16.00 to $15.00 and set a “buy” rating on the stock in a research note on Wednesday, July 3rd. Finally, Stephens reissued an “equal weight” rating and issued a $15.00 target price on shares of Huntington Bancshares in a research note on Monday, April 22nd. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Huntington Bancshares presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.
Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. The company offers financial products and services to consumer and business customers, including deposits, lending, payments, mortgage banking, dealer financing, investment management, trust, brokerage, insurance, and other financial products and services.
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Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., speaks during an Economic Club of New York (ECNY) event in New York, US, on Tuesday, April 23, 2024.
Victor J. Blue | Bloomberg | Getty Images
JPMorgan Chase is scheduled to report second-quarter earnings before the opening bell Friday.
Here’s what Wall Street expects:
Earnings: $4.19 a share, according to LSEG
Revenue: $49.9 billion, according to LSEG
Net interest income: $22.8 billion, according to StreetAccount
Trading Revenue: Fixed income of $4.82 billion; Equities of $2.77 billion, according to StreetAccount
Will cracks in the economy begin to reveal themselves in JPMorgan Chase results?
While JPMorgan has passed numerous stress tests lately — actual and hypothetical — it’s possible the bank’s consumers could begin showing more strain from higher interest rates.
Another open question is about succession at JPMorgan after CEO Jamie Dimon acknowledged in May that he now had less than five years remaining in his current role.
Investors could face a correction as the quarterly earnings season kicks off, with stocks trading at all-time highs.
Morgan Stanley’s chief U.S. equity strategist warned uncertainty around a host of different issues—including corporate earnings, the November election outcome, future tariffs and central bank policy—will mean the current third quarter could get “choppy” for investors.
“Right here, valuations to me look very, very unexciting,” Mike Wilson told Bloomberg TV on Monday. “I think the chance of a 10% correction is highly likely sometime between now and the election.”
The Morgan Stanley strategist was quick to point out that apart from a few dozen U.S. corporations, the average company isn’t seeing its profits increase, and it will not until the Federal Reserve begins to loosen.
Investors are hoping to glean some helpful hints on the direction of monetary policy when chair Jay Powell provides testimony to Congress today and tomorrow. Currently the market is pricing in an 80% chance of a rate cut in September as labor market data softens.
“We need rates to come down, that’s number one,” Wilson told Bloomberg Television. “Or we need some sort of exogenous positive shock on the growth side that doesn’t lead to an inflationary problem. You tell me where that’s coming from.”
AI chip supplier Taiwan seeing exports to U.S. soar
Here’s where artificial intelligence, and generative AI in particular, enters the picture.
Whether it’s Apple, Meta, or Amazon, many companies are notching fresh record highs amid expectations that AI will prove transformational for corporate profits, boosting productivity without pushing up prices.
The question is whether the slate of earnings figures will bear that out when the first begin reporting results later this week, starting with the major Wall Street banks on Friday.
“I am looking at during the second quarter for a lot of companies to give us some specific examples of how AI is starting to make a difference in their productivity and cost cutting,” Yardeni Research president Ed Yardeni told CNBC on Monday.
The latest export data from Taiwan, a major provider of cutting-edge electronics needed for AI-powered data centers, shows goods shipped to the United States soared 74% in June over the previous year’s period, helped by companies like Taiwan Semiconductor Manufacturing Company
On Monday, the country’s industry-leading foundry, which fabricates AI chips on behalf of Nvidia, even joined, however brief, the elite club of megacap stocks worth $1 trillion or more.
In the face of this momentum, Yardeni believes investors find little reason not to chase the market higher.
“The market for the past few weeks has just continued to march higher to new record highs and it’s done it on disappointing economic indicators,” he said.
“I think investors have concluded that let’s not worry too much about the economy slowing or even a recession because if that were even to become a significant risk, the Fed will move pretty quickly to lower interest rates.”
AI hallucinations may erode some of the predicted productivity gains
But AI may not prove to be the silver bullet everyone thinks.
James Ferguson, founding partner of UK-based economic research firm MacroStrategy Partnership, argues investors are not accounting for the propensity of generative AI to hallucinate, i.e. spit out fictitious data and information that dilutes productivity gains.
Businesses that fail to spend time double-checking their work can find themselves in a similar bind as the law firm Levidow, Levidow & Oberman.
It made headlines across the country in all the wrong ways after submitting a legal argument that cited case precedents ChatGPT had fabricated out of thin air.
“Fake it till you make it may work in Silicon Valley, but for the rest of us, I think once bitten twice shy may be more appropriate,” he told a recent Bloomberg podcast, warning the hype around AI has spawned a concentrated market bubble reminiscent of the dotcom era. “If AI cannot be trusted […] then AI is effectively—in my mind—useless.”
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Jim Cramer’s daily rapid fire looks at stocks in the news outside the CNBC Investing Club portfolio. Corning : Shares of the specialty materials company popped more than 10.5% on Monday after pre-announcing better-than-expected earnings. Management is now forecasting higher revenue and earnings-per-share on the high end of previous guidance for the second quarter. The company is set to report on July 30. Shares of Corning, which makes glass for Apple devices, reached their highest levels since February 2022. Tesla : Shares of the electric vehicle leader made a huge, 27% increase last week after the company delivered better-than-expected second-quarter production and deliveries. The stock jumped another nearly 3% on Monday. Cramer called the rally a short squeeze — meaning investors betting Tesla stock would go down were forced to cover as it ripped higher. JPMorgan : The bank caught a rare downgrade, with Wolfe Research taking its rating to peer perform from outperform (hold from buy) on valuation and exposure to lower net interest income given the threat of lower Federal Reserve interest rates approaching. Cramer said he’s concerned heading into JPMorgan’s second-quarter earnings Friday since there was a big sell-off following its Q1 release in April when the bank guided flat NII for 2024. “I don’t want the stock coming in hot,” he added. Domino’s Pizza : The pizza delivery chain was upgraded to an outperform rating from a neutral (buy from hold) at Baird. The analysts also raised their price target to $580 per share from $530. Baird sees the recent 7.4% pullback in Domino’s stock over the last eight sessions as an opportunity. They cited strong fundamentals, product pipeline, and management. Cramer thought this was a fair call since Domino’s CEO Russell Weiner is “crushing it.” ServiceNow : Shares of the enterprise software company took an over 4% dive on Monday after Guggenheim downgraded the stock to sell from neutral. The analysts said the company will get a boost from its generative artificial intelligence business in the second half of this year but won’t see that momentum into 2025. Cramer said the call was contrary to CEO Bill McDermott’s stance that generative AI offerings have been resonating with customers.
Wall Street finished higher for the holiday-shortened trading week, with tech stocks leading the way. The Dow Jones Industrial Average gained under 1% for the week. The S & P 500 and Nasdaq , which both closed at record highs Friday — rising nearly 2% and 3.5%, respectively, for the week. The first week of July continued the strength seen in June, the second quarter, and the first half of 2024. The S & P 500 technology sector was the big winner this past week, with Apple and Broadcom as our top Club stocks. Consumer discretionary and communication services, featuring Club name Meta Platforms and Alphabet , were also strong. Energy led to the downside this week, followed by health care and industrials. Looking back on the week, short as it was given the early close on Wednesday and Thursday off, we got some notable updates on the economy and heard from Club holding Constellation Brands . The Corona and Modelo brewer’s quarterly results Wednesday were decent , and the stock initially popped on the news. We told members that we were taking some profits in Constellation shortly before the open . However, the troubled wine and spirits business remained a problem that management must address in the coming quarters. Shares finished Wednesday down more than 3%, though they recovered much of that on Friday for a relatively flat week. Helping Friday’s largely higher session was drop in bond yields – precipitated by an uptick in June’s unemployment rate to 4.1% and only modestly higher than expected nonfarm payrolls additions of 206,000. Wage inflation was right in line with expectations. Taken as a whole, the government’s monthly jobs report card supported the case of the Federal Reserve to cut interest rates at its September meeting. While market odds favor a second cut in December, the Fed projected after its June meeting just one rate cut this year. This past week also brought updates on the manufacturing sector. On Monday, June’s ISM Manufacturing purchasing managers index came in weaker than expected and pointed to a faster-than-expected contraction, and on Wednesday, May’s factory order numbers showed a monthly decline versus expectations for a small increase. The ISM’s services PMI for June, out Wednesday, also disappointed, as it showed a contraction in the services sectors. Economists had been expecting to see an expansion. These readings were also green lights for the Fed to start cutting rates. We hope everyone had a good July 4 th and has a restful weekend. You’ll want to take advantage of the lull because believe it or not, earnings season is back. Three of the four big money center banks report this coming Friday, including Club name Wells Fargo . The government also delivers key data on consumer and wholesale inflation. Economic data : The June consumer price index (CPI) is out on Thursday morning, and the June producer price index (PPI) is out on Friday morning. Of the two, CPI carries more weight given that it more closely represents what consumers are paying for a basket of goods from one year, or month, to the next, which is the Fed’s main concern. However, PPI is important to track because it tells us what is happening at the cost input level for corporations. That speaks to margin dynamics – and therefore, it can inform us on both profitability and potential price actions companies may need to take in the future to protect profitability. Within the CPI data, be sure to watch the shelter component, which has been a huge thorn in the Fed’s side. Shelter, a barometer of what people pay for housing, has proven a very sticky source of inflation – a problem because, for most Americans, it represents a large and unavoidable cost. For headline CPI, economists are looking for a 3.1% annual increase, according to FactSet as of Friday. Core CPI, which excludes food and energy prices, is expected to increase 3.5% year over year. If realized, that would represent a slight deceleration at the headline level but a slight acceleration at the core level. As for PPI, economists are looking for a 2.3% annual increase at the headline level and a 2.5% year-over-year rise at the core level. Those numbers would be slightly higher than what we saw in May. Earnings season : Within the portfolio, net interest income (NII) guidance is going to be a key watch item when Wells Fargo reports its quarter this coming Friday. At an industry conference Tuesday, CFO Michael Santomassimo reiterated guidance for NII to be down 7% to 9% year over year. We still think this outlook could be conservative since the Fed’s higher-for-longer policy is generally a tailwind to net interest income. However, other factors like muted loan demand have prevented Wells Fargo from raising its outlook this year. Recognizing strong recent runs in shares of Wells Fargo and our other Club bank Morgan Stanley , we took some profits this past Friday. Morgan Stanley is set to deliver its earnings on Tuesday, July 16. We’re also interested to hear management’s thoughts on the intended pace of share repurchases in the second half of the year, now that the results of the stress test are in. Wells Fargo – and our other bank name Morgan Stanely – both passed, indicating they have strong capital positions with excess money to return to shareholders. Other higher-level watch items in the Wells Fargo report include commentary on the state of consumer savings, an indication of further buying power, and the real estate market, which has been something we’ve been monitoring as the world finds a new normal post-Covid. Monday, July 8 No major events Tuesday, July 9 No major events Wednesday, July 10 No major events Thursday, July 11 8:30 a.m. ET: Consumer price index 8:30 a.m. ET: Initial jobless claims Before the bell earnings: PepsiCo (PEP), Delta Air Lines (DAL), Conagra Brands (CAG) Friday, July 12 8:30 a.m. ET: Producer price index Before the bell: Wells Fargo (WFC), JPMorgan Chase (JPM), Citigroup (C) (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
U.S. flag is seen hanging on New York Stock Exchange building on Independence Day In New York, United States on America on July 4th, 2024.
Beata Zawrzel | Nurphoto | Getty Images
Wall Street finished higher for the holiday-shortened trading week, with tech stocks leading the way.
Bath & Body Works (NYSE:BBWI – Get Free Report) updated its FY25 earnings guidance on Tuesday. The company provided EPS guidance of $3.05 and $3.35 for the period, compared to the consensus EPS estimate of $3.31. The company issued revenue guidance of flat to down 2.5% to ~$7.24-7.43 billion, compared to the consensus revenue estimate of $7.41 billion. Bath & Body Works also updated its FY 2024 guidance to 3.050-3.350 EPS.
Wall Street Analysts Forecast Growth
A number of equities research analysts recently commented on the company. Piper Sandler increased their price target on Bath & Body Works from $44.00 to $45.00 and gave the stock a neutral rating in a research report on Tuesday, April 9th. Wells Fargo & Company increased their price objective on Bath & Body Works from $42.00 to $48.00 and gave the company an equal weight rating in a research report on Wednesday, April 24th. The Goldman Sachs Group increased their price objective on Bath & Body Works from $49.00 to $56.00 and gave the company a buy rating in a research report on Monday, March 4th. Deutsche Bank Aktiengesellschaft increased their price objective on Bath & Body Works from $53.00 to $57.00 in a research report on Monday. Finally, JPMorgan Chase & Co. upgraded Bath & Body Works from an underweight rating to a neutral rating and increased their price objective for the company from $40.00 to $53.00 in a research report on Friday, May 17th. Eight investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of Hold and an average price target of $48.20.
NYSE:BBWI opened at $45.28 on Wednesday. Bath & Body Works has a 12-month low of $27.30 and a 12-month high of $52.99. The firm has a market capitalization of $10.13 billion, a P/E ratio of 11.76, a P/E/G ratio of 1.66 and a beta of 1.90. The stock’s fifty day simple moving average is $47.22 and its 200-day simple moving average is $44.03.
Bath & Body Works Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Friday, June 21st. Stockholders of record on Friday, June 7th will be given a $0.20 dividend. The ex-dividend date of this dividend is Friday, June 7th. This represents a $0.80 annualized dividend and a dividend yield of 1.77%. Bath & Body Works’s dividend payout ratio is currently 20.78%.
Insider Transactions at Bath & Body Works
In other news, insider Thomas E. Mazurek sold 4,285 shares of the firm’s stock in a transaction on Wednesday, March 27th. The stock was sold at an average price of $48.89, for a total value of $209,493.65. Following the transaction, the insider now directly owns 45,992 shares in the company, valued at approximately $2,248,548.88. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.27% of the stock is owned by corporate insiders.
Bath & Body Works, Inc operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. It sells its products under the Bath & Body Works, White Barn, and other brand names through retail stores and e-commerce sites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements.
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Cooper Companies (NASDAQ:COO – Get Free Report) posted its earnings results on Thursday. The medical device company reported $0.85 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.02, Briefing.com reports. Cooper Companies had a return on equity of 8.79% and a net margin of 7.93%. The company had revenue of $942.60 million for the quarter, compared to analyst estimates of $948.07 million. During the same period last year, the company earned $0.77 earnings per share. The business’s revenue was up 7.4% compared to the same quarter last year. Cooper Companies updated its FY24 guidance to $3.54-3.60 EPS and its FY 2024 guidance to 3.540-3.600 EPS.
Cooper Companies Stock Down 1.0 %
Shares of COO opened at $90.23 on Friday. The company has a market capitalization of $17.93 billion, a P/E ratio of 61.70, a PEG ratio of 2.31 and a beta of 0.97. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.86 and a quick ratio of 1.08. Cooper Companies has a one year low of $75.93 and a one year high of $104.07. The business’s 50 day simple moving average is $94.69 and its 200-day simple moving average is $93.59.
Analyst Ratings Changes
Several equities analysts have weighed in on COO shares. Needham & Company LLC restated a “hold” rating on shares of Cooper Companies in a report on Friday. Piper Sandler raised their target price on Cooper Companies from $110.00 to $115.00 and gave the company an “overweight” rating in a report on Friday, March 1st. Redburn Atlantic upgraded Cooper Companies from a “neutral” rating to a “buy” rating and set a $125.00 price objective on the stock in a research note on Tuesday, March 19th. Citigroup lifted their price objective on Cooper Companies from $108.00 to $116.00 and gave the stock a “buy” rating in a research note on Wednesday, April 3rd. Finally, JPMorgan Chase & Co. upgraded Cooper Companies from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $100.00 to $120.00 in a research note on Wednesday, March 13th. Four investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $109.69.
In other news, CAO Agostino Ricupati sold 54,724 shares of the business’s stock in a transaction that occurred on Monday, March 18th. The stock was sold at an average price of $100.89, for a total value of $5,521,104.36. Following the transaction, the chief accounting officer now directly owns 5,081 shares of the company’s stock, valued at approximately $512,622.09. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, CAO Agostino Ricupati sold 54,724 shares of the business’s stock in a transaction that occurred on Monday, March 18th. The shares were sold at an average price of $100.89, for a total value of $5,521,104.36. Following the completion of the transaction, the chief accounting officer now owns 5,081 shares in the company, valued at approximately $512,622.09. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gary S. Petersmeyer sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 5th. The stock was sold at an average price of $103.51, for a total transaction of $103,510.00. Following the completion of the transaction, the director now owns 5,668 shares of the company’s stock, valued at approximately $586,694.68. The disclosure for this sale can be found here. 2.00% of the stock is owned by company insiders.
The Cooper Companies, Inc, together with its subsidiaries, develops, manufactures, and markets contact lens wearers. The company operates in two segments, CooperVision and CooperSurgical. The CooperVision segment provides spherical lense, including lenses that correct near and farsightedness; and toric and multifocal lenses comprising lenses correcting vision challenges, such as astigmatism, presbyopia, and myopia in the Americas, Europe, Middle East, Africa, and Asia Pacific.
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Cloud-based fintech nCino aims to spend nearly $110 million on research and development for AI and digital banking tools this year. The Wilmington, N.C.-based company aims to develop automated and digital onboarding as well as AI- and generative AI-driven solutions for predictive analytics, Paul Clarkson, executive vice president of global sales at nCino, told Bank […]
The bank said Thursday it will now pay a quarterly dividend of $1.42 per share, an increase of four cents. It also said it plans to buy back up to 30 million of its shares.
The moves came as RBC said it earned $3.95 billion or $2.74 per diluted share for the quarter ended April 30, up from $3.68 billion or $2.60 per diluted share a year earlier, helped in part by record capital markets revenue.
“This quarter, we saw strong growth across diversified revenue streams,” said chief executive Dave McKay on an earnings call.
He said the bank’s capital generation means it has options ahead for growth, including potential acquisitions, even as the bank returns more money to shareholders.
“This enormous capital that we are generating gives us significant strategic flexibility inorganically.”
The bank also has a wide range of growth options within the bank now, including making the most of its $13.5-billion HSBC Canada acquisition.
End of uncertainty for former HSBC employees
The roughly 4,500 employees RBC took on with the acquisition are now free from the uncertainty around the deal, and the barriers it posed to bringing on clients, he said.
“They’ve been on the defence for 18 months, and now we’re on the offence and you can see the excitement in their eyes to get back,” said McKay.
Stocks that traded heavily or had substantial price changes on Wednesday: American Airlines, Advance Auto Parts fall; Chewy, Dick’s Sporting Goods rise
NEW YORK — Stocks that traded heavily or had substantial price changes on Wednesday:
ConocoPhillips, down $3.71 to $115.25.
The energy company is buying Marathon Oil in an all-stock deal valued at approximately $17.1 billion.
Robinhood Markets Inc., up 62 cents to $21.09.
The online broker announced a $1 billion stock buyback plan.
Dick’s Sporting Goods Inc., up $31.03 to $226.03.
The sporting goods retailer raised its earnings forecast for the year.
American Airlines Group Inc., down $1.82 to $11.62.
The airline cut its earnings forecast for the current quarter and said its chief commercial officer is leaving the company.
Chewy Inc., up $4.59 to $21.50.
The online pet store beat analysts’ first-quarter earnings forecasts and announced a $500 million buyback.
Advance Auto Parts Inc., down $7.70 to $62.48.
The auto parts retailer’s first-quarter earnings and revenue fell short of analysts’ forecasts.
Box Inc., up $2.16 to $27.20.
The online storage provider’s first-quarter earnings and revenue beat Wall Street forecasts.
Abercrombie & Fitch Co., up $37.06 to $189.45.
The teen clothing retailer beat analysts’ first-quarter earnings and revenue forecasts.
BMO continued to deliver on its digital-first agenda during its fiscal second quarter 2024 with AI, data and overall modernization at the forefront of its efforts. “We’re using agile practices to accelerate time to market, deploying increasingly sophisticated data and analytics, including AI, and leveraging cloud engineering to drive modernization and deliver more, faster, […]
So has the usual pay at local bars that don’t charge a cover: $100 per musician.
These rates have stayed the same for decades. Why!?
The costs of OTHER goods and services have increased since then. And if inflation can drive wages up as well, then why haven’t local musicians gotten a “raise” in the past 40-50 years?
Well, here’s my theory (in the video below).
Plus an estimate of how much you WOULD be making if musician wages for local gigs were adjusted for inflation:
Time to step outside the live-music “supply game”
Want to earn more money from your gigs? Play better venues? Rock bigger crowds?
Here’s a list of resources to help you earn more from your live shows:
Scotiabank saw digital adoption among customers and its tech spend tick up during its fiscal second quarter 2024. The Toronto-based bank reported active mobile users increased 10% year over year to 4.3 million, while its digital adoption rate increased 2.7% YoY to 64.5% in Canada in the quarter ended April 30. The $1 trillion bank […]
Medtronic (NYSE:MDT – Get Free Report) updated its FY 2025 earnings guidance on Friday. The company provided earnings per share guidance of 5.400-5.500 for the period, compared to the consensus earnings per share estimate of 5.450. The company issued revenue guidance of $33.1 billion-$33.6 billion, compared to the consensus revenue estimate of $33.6 billion.
Analysts Set New Price Targets
MDT has been the subject of a number of recent research reports. Needham & Company LLC reissued a hold rating on shares of Medtronic in a research report on Friday. Royal Bank of Canada reissued a sector perform rating and issued a $92.00 price target on shares of Medtronic in a research report on Friday. Mizuho raised their price objective on Medtronic from $95.00 to $98.00 and gave the company a buy rating in a research report on Wednesday, February 21st. UBS Group boosted their target price on Medtronic from $75.00 to $76.00 and gave the stock a sell rating in a report on Friday. Finally, Truist Financial reduced their price target on Medtronic from $90.00 to $88.00 and set a hold rating for the company in a report on Friday. One analyst has rated the stock with a sell rating, five have assigned a hold rating and six have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Medtronic currently has an average rating of Hold and a consensus price target of $94.45.
Shares of MDT stock opened at $82.29 on Friday. The stock has a market capitalization of $109.27 billion, a P/E ratio of 29.92, a P/E/G ratio of 2.68 and a beta of 0.78. The company has a current ratio of 2.03, a quick ratio of 1.71 and a debt-to-equity ratio of 0.47. The firm’s 50 day moving average is $82.81 and its 200 day moving average is $82.75. Medtronic has a 12-month low of $68.84 and a 12-month high of $91.00.
Medtronic (NYSE:MDT – Get Free Report) last released its quarterly earnings results on Thursday, May 23rd. The medical technology company reported $1.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.45 by $0.01. The firm had revenue of $8.59 billion for the quarter, compared to the consensus estimate of $8.44 billion. Medtronic had a return on equity of 13.47% and a net margin of 11.36%. The company’s revenue for the quarter was up .5% on a year-over-year basis. During the same period last year, the business posted $1.57 EPS. Research analysts expect that Medtronic will post 5.45 earnings per share for the current year.
Medtronic Increases Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 12th. Stockholders of record on Friday, June 28th will be paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 3.40%. The ex-dividend date of this dividend is Friday, June 28th. This is a boost from Medtronic’s previous quarterly dividend of $0.69. Medtronic’s dividend payout ratio is 100.36%.
Insider Activity at Medtronic
In other Medtronic news, EVP Michael Marinaro sold 854 shares of the stock in a transaction that occurred on Monday, April 8th. The shares were sold at an average price of $83.14, for a total value of $71,001.56. Following the transaction, the executive vice president now directly owns 27,925 shares in the company, valued at $2,321,684.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.30% of the stock is currently owned by company insiders.
Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software.
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Nvidia’s data center revenue skyrocketed during its fiscal first quarter 2025 as companies look to the chip-making giant for AI infrastructure. Data center revenue reached $22.6 billion, up 427% year over year, according to the company’s earnings report for the quarter ended April 28. Nvidia’s fiscal Q4 2024 data center revenue jumped 409% YoY to […]
In what was the most anticipated quarter this earnings season, Nvidia far outpaced lofty expectations on the top and bottom lines. Even better was a big revenue guide and a broader vision from CEO Jensen Huang that reinforced the notion that companies and countries are partnering with the AI chip powerhouse to shift $1 trillion worth of traditional data centers to accelerated computing. Revenue for its fiscal 2025 first quarter surged 262% year-over-year to $26.04 billion, well ahead of analysts’ forecasts of $24.65 billion, according to data provider LSEG, formerly known as Refinitiv. The company had previously guided revenue to $24 billion, plus or minus 2% — so that was a huge beat. Adjusted earnings-per-share increased 461% to $6.12, exceeding the LSEG compiled consensus estimate of $5.59. Adjusted gross margin of 78.9% also beat the Street’s 77.2% estimate, according to market data platform FactSet. The company had guided gross margins to 77%. plus or minus 50 basis points. On top of the strong results, Nvidia announced a 10-for-1 stock split. Although stock splits don’t technically create value, they do tend to have a positive impact on the stock. The company said the split is to “make stock ownership more accessible to employees and investors.” We commend Nvidia for doing this and will continue to press other companies to do the same. Nvidia most recently split its stock in July 2021 on a 4-for-1 basis. In after-hours trading, it was little surprise to see Nvidia shares surging. Nvidia Why we own it : Nvidia’s high-performance graphic processing units (GPUs) are the key driver behind the AI revolution, powering the accelerated data centers being rapidly built around the world. But this is more than just a hardware story. Through its Nvidia AI Enterprise service, Nvidia is in the process of building out a potentially massive software business. Competitors : Advanced Micro Devices and Intel Most recent buy : Aug 31, 2022 Initiation : March 2019 Bottom line What air pocket? Coming into the quarter, it sounded like the only thing that could hold Nvidia back was a product transition-related slowdown from customers delaying orders of the H100 and H200 GPUs (graphics process units) in anticipation of the superior Blackwell chip platform. As you can see from Nvidia’s big beat and upside guide, that was far from the case and demand is expected to exceed supply for quite some time. Should this narrative form again, here’s a good thing to remember for next time so that these concerns don’t shake you out of a strong long-term thesis: Jensen explained on the post-earnings conference call that customers are still so early in their build-outs that they have to keep buying chips to keep up in the current technology arms race. And technology leadership is everything. “There’s going to be a whole bunch of chips coming at them and they just got to keep on building and just, if you will, performance average your way into it. So that’s the smart thing to do,” the CEO said. More broadly, we didn’t hear anything Wednesday evening to change our long-term view about how Nvidia is the driving force behind the current AI industrial revolution. Here’s how Jensen explained the shift that’s happening: “Longer term, we’re completely redesigning how computers work. And this is a platform shift. Of course, it’s been compared to other platform shifts in the past, but time will clearly tell that this is much, much more profound than previous platform shifts. And the reason for that is because the computer is no longer an instruction-driven only computer. It’s an intention understanding computer.” Jensen went on to mention how computers not only interact with us, “but it also understands our meaning, what we intend that we asked it to do, and it has the ability to reason, inference iteratively to process and plan and come back with a solution.” The billions and billions of dollars being spent on accelerated computing is why we own Nvidia for the long-haul and are not trying to trade it back and forth on every headline. By the way, another bearish narrative we often hear is that the custom chips all the big cloud companies are making are a threat to Nvidia’s leadership. Jensen doesn’t see it that way because his platform system has the highest performance at the lowest total cost of ownership. It’s an unbeatable value proposition. NVDA YTD mountain Nvidia YTD The strong results and outlook, upbeat commentary, and stock split were sending Nvidia shares roughly 6% higher to above $1,000 per share for the first time ever. However, we don’t think the gains end here. We’re increasing our price target to $1,200 from $1050 and maintaining our 2 rating , meaning we view it as a buy on pullbacks. Quarterly Results Growth was driven by all customer types, but enterprise and consumer internet companies led the way. Large cloud companies represented a mid-40% of data center revenue in the quarter, so when you see companies like Oracle and Club names Amazon , Microsoft and Alphabet raise their capital expenditure outlooks, understand that a lot of those dollars will flow Nvidia’s way. And, there’s a good reason for it. On the call, Nvidia CFO Colette Kress estimates that for every $1 spent on Nvidia AI Infrastructure, a cloud provider has an opportunity to earn $5 in GPU instant hosting revenue over four years. One customer call out in the quarter was Tesla , expanding its training AI cluster to 35,000 H100 GPUs (graphic processing units). Nvidia said Tesla’s use of Nvidia AI infrastructure “paved the way” for the “breakthrough performance” of full self-driving version 12. (Full self-driving, or FSD, is the way Tesla markets its high level of driver-assisted software.) Interestingly, Nvidia sees automotive as a huge vertical this year, a multi-billion revenue opportunity across on-premise and cloud consumption. Another highlight was Meta’s announcement of Llama 3, its large language model. It was trained on a cluster of 24,000 H100 GPUs. Kress believes that as more consumer internet customers use generative AI applications, Nvidia will see more growth opportunities. The Tesla and Meta clusters are examples of what Nvidia calls “AI Factories.” The company believes “these next-generation data centers host advanced full-stack accelerated computing platforms where the data comes in and intelligence comes out. Nvidia also pointed out that sovereign AI has been a big source of growth. The company defines sovereign AI as a “nation’s capabilities to produce artificial intelligence using its own infrastructure, data, workforce, and business networks.” Kress expects sovereign AI revenue to approach the high single-digit billions of dollars this year from nothing last year. Looking ahead, Nvidia sees supply for the H100 improving but is still constrained on the H200. Even with the transition to Blackwell, Nvidia expects demand for Hopper for quite some time. “Everybody is anxious to get their infrastructure online, and the reason for that is because they’re saving money and making money, and they would like to do that as soon as possible,” the company said. In other words, customers will take whatever they can get. But look for Blackwell revenue later this year, perhaps in a very meaningful amount. The company explained manufacturing of Blackwell has been in production and shipments are expected to start the fiscal 2025 second quarter, ramp in the third, and customers will have full data centers stood up in the fourth quarter. Software was mentioned more than two dozen times on the conference call. And taken together, Nvidia said on the prior quarter’s call that its software and services reached an annualized revenue rate of $1 billion. They are high-margin, recurring revenue businesses, which continue to be key watch areas in future quarters. As for China, the company said it started to ramp up new products specifically made for the region that don’t require an export control license. The U.S. government has put restrictions on sales of the fastest chips for fear they will be used by the Chinese military. However, it doesn’t like China is expected to be a driver of revenue like it was in the past because the limitations to Nvidia’s technology have made the environment more competitive. Guidance The company’s fiscal second quarter guide should dismiss the market’s concerns that some sort of AI spending “air pocket” was forming. For the current Q2, Nvidia projected revenue of $28 billion, plus or minus 2%, above consensus estimates of $26.6 billion Adjusted gross margins are expected to be 75.5%, plus or minus 50 basis points, above estimates of 75.2%. Capital returns Nvidia increased its quarterly dividend by 150%, which is nice but the annual yield is insignificant to the investment case. More impactful is the $7.7 billion of stock the company repurchased in fiscal Q1. (Jim Cramer’s Charitable Trust is long NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Tuesday, March 19, 2024.
David Paul Morris | Bloomberg | Getty Images
In what was the most anticipated quarter this earnings season, Nvidia far outpaced lofty expectations on the top and bottom lines. Even better was a big revenue guide and a broader vision from CEO Jensen Huang that reinforced the notion that companies and countries are partnering with the AI chip powerhouse to shift $1 trillion worth of traditional data centers to accelerated computing.
Canada Goose reports $5M Q4 profit, YOY revenue up 22%
Canada Goose Holdings Inc. (TSX:GOOS) reported a profit in its fourth quarter compared with a loss a year earlier as its revenue rose 22%. The luxury parka maker says it earned net income attributable to shareholders of $5.0 million or $0.05 per diluted share for the quarter ended March 31, compared with a loss of $3.1 million or $0.03 per diluted share a year earlier. Revenue for the totalled $358.0 million, up from $293.2 million in the same quarter last year.
On an adjusted basis, Canada Goose says it earned $0.19 per diluted share in its latest quarter, up from an adjusted profit of $0.13 per diluted share a year earlier. The outlook for its 2025 financial year, Canada Goose says it expects total revenue to grow in the low-single-digits year-over-year. It also says its adjusted net income per diluted share for the full year is expected to grow by a mid-teen percentage compared with a year earlier.
Lightspeed reports Q4 revenue up 25%
Photo by The Canadian Press/Christinne Muschi
Photo by The Canadian Press/Christinne Muschi
Photo by The Canadian Press/Christinne Muschi
Three months after Dax Dasilva returned to the helm of Lightspeed Commerce Inc. on an interim basis, the company says he’s staying put. The Montreal-based payments technology business said Thursday that Dasilva, Lightspeed’s founder, has been reappointed as chief executive on a permanent basis, dropping the interim tag from his title.
Dasilva stepped back into the CEO job on an interim basis in February after JP Chauvet left the company. Chauvet joined Lightspeed as chief revenue officer in October 2012 and replaced Dasilva in the top job in February 2022, when the founder became executive chair.
“We’re in a new phase,” Dasilva told analysts on a conference call to discuss the company’s latest results. “This is the profitable growth phase of Lightspeed, so (I’m) thrilled to be leading.”
That new phase, he said, has three objectives:
accelerating software revenue growth,
advancing the adopting of Lightspeed’s financial services products
and controlling costs.
To improve software revenue growth, Dasilva said the company would invest in product innovation, redeploy account managers to upsell clients and focus on customers that tend to adopt more software.
On the financial services front, the company wants to get more clients using not just its payments technology, but also its capital and instant deposit offerings. Dasilva’s final objective is to control costs and find more savings.
Check out the companies making headlines after the bell : Boot Barn — The western apparel and footwear stock slid 7% after issuing light revenue and earnings guidance for the full year. Boot Barn said it expects earnings for the year to range between $4.55 and $4.85 a share, behind a FactSet estimate of $5.16 per share. The company topped quarterly estimates on the top and bottom lines. Nextracker — The solar technology stock popped 8%. Nextracker posted $737 million in revenue for the fiscal fourth quarter, topping an LSEG estimate of $682 million. The company issued full-year revenue that was roughly in line with estimates. Nu Holdings — Nu Holdings inched roughly 1% higher. The Brazil-based digital banking platform reported first-quarter adjusted net income and revenue that beat estimates. Revenue came in at $2.7 billion and ahead of a FactSet consensus estimate of $2.16 billion. dLocal — The Uruguayan financial tech company sank more than 18% on disappointing quarterly results. DLocal reported earnings of 6 cents per share on $184.4 million revenue. Analysts polled by FactSet had expected earnings per share of 12 cents on $189.8 million in revenue. Prestige Consumer Healthcare – The maker of Dramamine and Clear Eyes fell 7% after the company issued weak guidance. Prestige is calling for full-year earnings to range between $4.40 and $4.46 per share, while analysts polled by FactSet anticipated $4.65 per share. Fiscal fourth-quarter adjusted earnings and revenue also came in below consensus estimates.
