10 Earnings Reports Grabbing Everyone’s Attention

In this article, we will take a look at the 10 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.

5. Morgan Stanley (NYSE:MS)

Number of Hedge Fund Holders: 65

Shares of Morgan Stanley (NYSE:MS) slightly moved up on Thursday, April 14, 2022, after beating expectations for the first quarter. The Manhattan-based investment bank reported earnings of $2.02 per share, compared to $2.19 per share in the year-ago period.

In addition, Morgan Stanley (NYSE:MS) posted revenue of $14.8 billion versus $15.7 billion in the same period of 2021. The result surpassed the consensus of $1.68 per share for earnings and $14.2 billion for revenue.

Morgan Stanley (NYSE:MS) also released its segment-wise sales performance. Revenue from the Institutional Securities segment decreased to $7.7 billion, from $8.6 billion in the year-ago quarter. In comparison, Investment Management’s revenue of $1.3 billion and Wealth Management’s revenue of $5.9 billion remained nearly flat versus the comparable period of 2021.

Among other updates, Morgan Stanley (NYSE:MS) reported that it repurchased $2.9 billion worth of its common stock during the quarter.

Speaking on the results, CEO James Gorman said in a statement:

“The Firm delivered a strong ROTCE of 20% in the face of market volatility and economic uncertainty, demonstrating the resilience of our global diversified business. Institutional Securities navigated volatility on behalf of clients extraordinarily well, Wealth Management’s margin proved resilient and the business added $142 billion net new assets in the quarter, and Investment Management benefited from its diversification.”

4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 72

Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) fell over three percent on Thursday, April 14, 2022, despite posting solid profit and sales for the first quarter.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported earnings of $1.40 per ADS, beating expectations of $1.33. Revenue for the quarter climbed 36 percent versus last year to $17.57 billion, helped by strong demand from big clients, including Apple and Qualcomm. Analysts were looking for revenue of $17.31 billion.

Looking forward, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects revenue in the range of $17.6 billion to $18.2 billion for the current quarter, significantly higher than $13.29 billion in the comparable period of 2021.

Discussing the results, CFO Wendell Huang said:

“Our first quarter business was supported by strong HPC and Automotive-related demand. “Moving into second quarter 2022, we expect our business to continue to be supported by HPC and Automotive-related demand, partially offset by smartphone seasonality.”

3. The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 75

Shares of The Goldman Sachs Group, Inc. (NYSE:GS) turned red on Thursday, April 14, 2022, after the global investment bank reported a substantial drop in profit and revenue for the first quarter.

The Goldman Sachs Group, Inc. (NYSE:GS) reported earnings of $10.76 per share, well below $18.60 per share in the first quarter of 2021. Revenue also plummeted 27 percent on a year-over-year basis to $12.93 billion. Nevertheless, the results were better than the consensus of $8.89 per share for earnings and $11.83 billion for revenue.

If we look at Goldman Sachs’ segment-wise sales performance, investment banking revenue fell 36 percent to $2.41 billion, while asset management revenue plunged 88 percent to $546 million in the quarter.

On the bright side, The Goldman Sachs Group, Inc. (NYSE:GS) reported that revenue from its consumer & wealth management segment jumped 21 percent to $2.10 billion. In addition, global markets revenue also rose 4 percent to $7.87 billion in the quarter.

Commenting on the results, CEO David Solomon said in a statement:

“It was a turbulent quarter dominated by the devastating invasion of Ukraine. The rapidly evolving market environment had a significant effect on client activity as risk intermediation came to the fore and equity issuance came to a near standstill.”

2. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 96

UnitedHealth Group Incorporated (NYSE:UNH) is one of America’s largest healthcare and insurance companies. It recently came into the spotlight after delivering better-than-expected financial results for the first quarter.

The Minnesota-based healthcare giant reported adjusted earnings of $5.49 per share, up from $5.31 per share in the comparable period of 2021. Revenue for the quarter also rose 14.2 percent on a year-over-year basis to $80.1 billion, led by double-digit growth across its flagship segments. Analysts were expecting UnitedHealth Group Incorporated (NYSE:UNH) to report earnings of $5.37 per share on revenue of $78.76 billion.

UnitedHealth Group Incorporated (NYSE:UNH) also raised its profit outlook for 2022. The company is now looking for adjusted earnings in the range of $21.20 – $21.70 per share, compared to its earlier guidance between $21.10 – $21.60 per share.

Speaking on the results, CEO Andrew Witty said:

“Disciplined execution of our long-term strategy, with a sharp focus on ensuring access to care for the people we serve, enabled us to deliver high-quality, diversified growth across Optum and UnitedHealthcare during this first quarter of 2022.”

1. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 97

Citigroup Inc. (NYSE:C), one of the largest U.S. banks with operations in over 100 countries, recently posted its first-quarter profit and revenue above expectations. The better-than-expected results sent its shares up 1.56 percent on Thursday, April 14, 2022.

The New York-based bank reported earnings of $2.02 per share, compared to $3.62 per share in the year-ago period but above expectations of $1.55 per share. In addition, Citigroup Inc. (NYSE:C) posted revenue of $19.2 billion, down 2 percent on a year-over-year basis. However, it was above analysts’ average estimate of $18.15 billion.

Citigroup Inc. (NYSE:C) also released its segment-wise sales results. Revenue from its institutional clients group slipped 2 percent to $11.16 billion, while investment banking revenue plummeted 32 percent to $1.7 billion in the quarter. In comparison, revenue from its personal banking and wealth management segment inched down 1 percent to $5.91 billion.

You can also take a peek at 10 Best Micro-Cap Stocks to Buy According to Hedge Funds and 10 Undervalued Dividend Kings To Buy In 2022.

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Disclosure: None. 10 Earnings Reports Grabbing Everyone’s Attention is originally published on Insider Monkey.