Earnings this week : October 12 - 16, 20 (wk 42)

Big banks will lead off the Q3 earnings season this week. Of note, the 12 largest U.S. banks are all forecast to report a profit. Overall, Q3 profit for S&P 500 companies is forecast to be down 21% Y/Y to improve on the 31% drop recorded in Q2.

TUESDAY, OCT 13: 

• JPMorgan Chase & Co. (NYSE: JPM), Johnson & Johnson (NYSE: JNJ), Citigroup Inc (NYSE: C), Delta Air Lines, Inc. (NYSE: DAL).

WEDNESDAY, OCT 14: 

• Bank of America Corp (NYSE: BAC), Progressive Corp (NYSE: PGR), Wells Fargo & Co (NYSE: WFC), Goldman Sachs Group Inc (NYSE: GS), PNC Financial Services Group Inc (NYSE: PNC), U.S. Bancorp (NYSE: USB).

THURSDAY, OCT 15: 

• Aphria Inc (NASDAQ: APHA), Walgreens Boots Alliance Inc (NASDAQ: WBA), Morgan Stanley (NYSE: MS), Truist Financial Corp (NYSE: TFC), Charles Schwab Corporation (NYSE: SCHW).

FRIDAY, OCT. 16: 

• Ally Financial Inc (NYSE: ALLY), Schlumberger NV (NYSE: SLB), Bank of New York Mellon Corp (NYSE: BK), State Street Corp (NYSE: STT), Citizens Financial Group Inc (NYSE: CFG), J B Hunt Transport Services Inc (NASDAQ: JBHT).

 

Earnings spotlight: 

• BlackRock (NYSE:BLK), Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), Delta Air Lines (NYSE:DAL), Johnson & Johnson (NYSE:JNJ) on October 13; 
• Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), PNC (NYSE:PNC), Progressive (NYSE:PGR), U.S. Bancorp (NYSE:USB), UnitedHealth (NYSE:UNH), United Airlines (NASDAQ:UAL) and Wells Fargo (NYSE:WFC) on October 14; 
• Charles Schwab (NYSE:SCHW), Morgan Stanley (NYSE:MS), Truist (NYSE:TFC) and Walgreens Boots Alliance (NASDAQ:WBA) on October 15; 
• Ally Financial (NYSE:ALLY), Bank of New York Mellon (NYSE:BNY) and J.B Hunt Transport (JBH) on October 16.

Delta Air Lines (DAL) reported earnings on Thur 11 July 19 (b/o)

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Delta Air Lines beats by $0.07, reports revs in-line; guides Q3 EPS in-line; raises FY19 EPS and revenue; increases dividend 15%

• Reports Q2 (Jun) earnings of $2.35 per share, $0.07 better than the S&P Capital IQ Consensus of $2.28; revenues rose 6.5% year/year to $12.54 bln vs the $12.49 bln S&P Capital IQ Consensus, a new quarterly record, with 52 percent of adjusted revenue from premium products and non-ticket sources; 2.3 points of operating margin expansion and $1.8 billion of free cash flow. Total unit revenue, adjusted, increased 3.8% (above 1.5-3.5% original guidance), driven by healthy growth in leisure and corporate revenue and an approximate one point benefit from the amended American Express agreement announced earlier this year.
• Co issues in-line guidance for Q3, sees EPS of $2.10-2.40, excluding non-recurring items, vs. $2.16 S&P Capital IQ Consensus; unit revenue +1.5-3.5%, 
• Co issues in-line guidance for FY19, raises EPS to $6.75-7.25 from $6-7, excluding non-recurring items, vs. $6.98 S&P Capital IQ Consensus; revenue growth to 6-7% from 4-6%. "With record passenger loads, customer satisfaction and $1 billion in revenue growth for the June quarter, demand for Delta's customer-focused product and service has never been stronger. Our third quarter is off to a great start with a new highest revenue day on record on July 7th," said Glen Hauenstein, Delta's president. "We now expect revenue growth of six to seven percent for the year, a $3 billion increase over 2018, as we benefit from our multi-year pipeline of fleet, product, and loyalty initiatives."
• The Board of Directors today declared a quarterly dividend of $0.4025 per share, an increase of 15% over previous levels. This marks the sixth consecutive increase in Delta's dividend since it was established in 2013.
• CEO Ed Bastian on CNBC: Results in the quarter are not one-off. Seeing some softness in Pacific and Atlantic but modest compared to overall strength in domestic business. Benefit from 737 MAX is marginal, domestic supply is down 1-2%.

Fastenal (FAST) reported earnings on Thur 11 July 19 (b/o)

• Fastenal (FAST) as a distributor—and as one of the first industrial companies to report numbers this earnings season—its numbers will hold a lot of clues for investors regarding the health of the industrial economy

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Fastenal increases quarterly dividend to $0.22/share from $0.215/share (split adjusted)
Fastenal misses by $0.01, reports revs in-line

• Reports Q2 (Jun) earnings of $0.36 per share, $0.01 worse than the S&P Capital IQ Consensus of $0.37; revenues rose 7.9% year/year to $1.37 bln vs the $1.38 bln S&P Capital IQ Consensus.
• "Our gross profit, as a percentage of net sales, declined 180 basis points to 46.9% in the second quarter of 2019 from 48.7% in the second quarter of 2018. The most significant factors behind the decline in our gross profit percentage in the period were the impacts of customer and product mix and net inflation on product margins, the latter of which had a larger negative impact on our margin than in the first quarter of 2019. While we successfully raised prices as one element of our strategy to offset tariffs placed to date on products sourced from China, those increases were not sufficient to also counter general inflation in the marketplace. We have taken additional actions in the third quarter of 2019 to counter the broader pressures we are experiencing on our costs as well as the additional tariffs that were levied on China-sourced products in May 2019."

Earnings this week : Jan 14 - 18, 19 (wk 3)

Corporate profits will take center stage when fourth quarter earnings season kicks off this week.

The SEC allows companies a larger window to file their annual reports relative to quarterly updates. As a result, we will see preannouncements throughout January and fourth quarter earnings season will drag on into March.

This week, the big banks will dominant the corporate earnings newsflow.

Monday (Jan 14)    

• Morning: C SJR

Tuesday (Jan 15)

• Morning: DAL FRC INFO JPM SNV UNH WFC
• Afternoon: FULT PNFP UAL

Wednesday (Jan 16)

• Morning: BAC BLK BK CMA GS PNC SCHW USB WAFD
• Afternoon: AA CSX EGBN FUL HWC KMI PLXS

Thursday (Jan 17)

• Morning: BBT CBSH FAST HOMB IIIN KEY MS MTB MTG PPG SASR SBNY TSM WNS
• Afternoon: AXP JBHT NFLX OZK PBCT PRGS TEAM

Friday (Jan 18)

• Morning: CFG FHN KSU RF SLB STI STT VFC

Earnings this week : Oct 8 - 12, 18 (wk 41)

Earnings confirmed to report this week

Tuesday (Oct 9)

• Morning: AZZ, HELE

Wednesday (Oct 10)

• Morning: FAST

Thursday (Oct 11)

• Morning: CBSH DAL  DAVA  WBA

Friday (Oct 12)

• Morning: C JPM  PNC WFC FRC

Fastenal (FAST) reported earnings on Wed 11 July 2018 (b/o)

• First S&P500 company to report this earning season

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** charts after earnings **

 

Fastenal beats by $0.08, reports revs in-line

• Reports Q2 (Jun) earnings of $0.74 per share, $0.08 better than the Capital IQ Consensus of $0.66; revenues rose 13.1% year/year to $1.27 bln vs the $1.26 bln Capital IQ Consensus.
  • This increase in revenues was driven by higher unit sales related primarily to continued strength in underlying market demand and contribution from the co's growth drivers, most notably industrial vending and Onsite locations.
• "Our gross profit, as a percentage of net sales, declined 110 basis points to 48.7% in the second quarter of 2018 from 49.8% in the second quarter of 2017. We instituted a modest price increase in the second quarter of 2017 ahead of inflationary pressures that we were seeing in our supply chain, which produced an unseasonably strong gross profit margin in the three-month period. As inflation in the marketplace began to move through our income statement, it began to reduce the gross profit margin benefit we saw in the second quarter of 2017. Additional components that adversely affected our gross profit percentage during the second quarter of 2018 included higher freight expenses and changes in product and customer mix. Relative to the first quarter of 2018, our second quarter of 2018 gross profit percentage was flat. Challenges from product inflation and mix were offset by improvements in our freight management and leverage related to growth."