What You Need To Know For October 17th

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Let’s get into it. You’ll notice below we’re ramping into a full earnings blotter that covers what went down during earnings season.

Earnings Corner 📜 

Trending Up 📈 

Morgan Stanley (MS) reported earnings that beat estimates, with revenue of $15.38B up 16% y/y (vs. $14.41B expected) and EPS of $1.88 (vs. $1.58 expected). The bank outperformed across its wealth management, trading, and investment banking segments, with the last seeing revenue rise 56% since last year. The stock was up 6.5% at Wednesday’s close

Charles Schwab (SCHW) reported earnings that beat estimates, with revenue of $4.85B up 5% y/y (vs. $4.78B expected) and EPS of $0.71 (vs. $0.69 expected). The outperformance was driven by a 9% increase in clients’ daily average trades. The stock was up 6.3% at Wednesday’s close

United Airlines (UAL) reported earnings that beat estimates, with revenue of $14.84B up 2.5% y/y (vs. $14.78B expected) and EPS of $3.33 (vs. $3.17 expected). Mgmt. announced a $1.5B share buyback, the first since the airline took government aid during the Covid pandemic, and projected Q4 EPS of $2.50-$3.00 (vs. $2.68 expected). The stock soared on the news and was up 12.4% at Wednesday’s close, reaching its highest price since February 2020

Abbott Laboratories (ABT) reported earnings that beat estimates and raised its profit outlook, driving the stock up 1.5% at Wednesday’s close

Goldman Sachs (GS) reported earnings that beat estimates, as easing rates buoyed investment banking, trading, and asset management fees, driving the stock up 1.4% at Wednesday’s close

Johnson & Johnson (JNJ) reported earnings that beat estimates, even as net income was down 38% y/y due to over $3B in one-time legal and acquisition-related costs. The stock fell in premarket trading but was up 2.7% at Wednesday’s close

Progressive (PGR) reported earnings that beat estimates, with mgmt. noting that losses from Hurricane Helene will total to a $0.75 EPS hit in Q4. The stock was up 1% at Wednesday’s close

State Street (STT) reported earnings that beat estimates, driven by a 21% increase in revenue, causing the stock to hit an all-time and finish up 2.1% at Wednesday’s close

Trending Down 📉 

ASML (ASML) reported earnings that beat estimates, with revenue of €7.47B (vs. €7.17B) and EPS of €5.28 (vs. €4.86). However, in an earnings statement that was accidentally released a day early, mgmt. cut its sales outlook and reported disappointing orders due to new export controls to China. The stock plunged and was down 21.7% at Wednesday’s close. As Europe’s largest company, ASML’s weak Semiconductor guide spooked Tech bulls, but some are saying that this is far from a disaster for AI Chip Stocks

Citigroup (C) reported earnings that beat estimates, with revenue of $20.32B up 18% y/y (vs. $19.84B expected) and EPS of $1.51 (vs. $1.31 expected). The bank grew investment banking, wealth management, and equity markets revenue, but saw a decline in net interest income and fixed income revenue and increased its allowance for credit losses by $315M. The stock fell on the day and was down 4.9% at Wednesday’s close

United Health Group (UNH) reported earnings that beat estimates, with revenue of $100.8B up 9% y/y (vs. $99.3B expected) and EPS of $7.15 (vs. $7.03 expected). However, the street was disappointed by a conservative FY 2025 EPS projection of $30 on the upper end (vs. $31.18 expected). The stock fell on the day and was down 5.6% at Wednesday’s close

Bank of America (BAC) reported earnings that beat estimates, with fee-based revenue offsetting declines in net interest income and driving the stock up 2.1% at Wednesday’s close

LVMH (LVMH) reported earnings that missed estimates due to declining demand in China and Japan, causing the stock to fall 7.6% at Wednesday’s close. Regardless, the Company is going to continue to focus on the high end consumer and maintain pricing

Today’s Headlines 🍿