Wall Street Banks And Household Brands Report Earnings

As expected, a plethora of earnings reports have hit the tape this morning, including more of the bigger Wall Street banks and other household brands. Put simply, results are mostly good but ultimately mixed thus far. Let’s try to slog through what we’ve found at this hour.

Goldman Sachs GS beat estimates on both top and bottom lines, but shares are selling off following this earnings report on drastically lower fixed income revenues. Earnings of $3.95 per share beat the $3.51 in the Zacks consensus estimate, on sales of $7.887 billion, well ahead of the $7.57 billion expected. But it was the 40% drop in Fixed Income, Commodities and Currencies (FICC, a staple of Goldman Sachs’ holdings) and the second quarter in a row of poor performance in this segment.

Bank of America BAC also topped estimates: 46 cents per share on $22.83 billion beat the 43 cents and $21.91 billion, respectively, in the Zacks consensus. An after-tax windfall of $103 million related to the sale of its non-consumer credit card business helped achieve the quarterly beat on the top line. This is at least the fifth quarter in a row of posting an earnings beat for the North Carolina-based bank major.

Healthcare product retailer Johnson & Johnson JNJ beat earnings estimates by 4 cents per share to $1.83 in the quarter, though revenues of $18.84 billion missed the $18.90 billion expected. However, guidance for both sales and earnings for fiscal 2017 were revised upward within the earnings report, helping JNJ shares rise 2% immediately following the results.

Defense contractor giant Lockheed Martin LMT surpassed the Zacks consensus for both earnings and revenues: $3.23 per share beat the $3.10 anticipated, and quarterly sales of $12.69 billion beat the $12.46 billion expected. The company’s Aeronautics segment grew 19% year over year, helping boost Lockheed’s results in the quarter, and the shares are trading up in today’s pre-market.

Zacks Rank #2 (Buy)-rated healthcare provider United Health UNH topped earnings estimates for its Q2, on revenues that marginally surpassed our consensus. Earnings of $2.46 per share beat by 8 cents in the quarter, and sales of $50.1 billion was a smudge above the $49.97 billion expected. The company has raised its forecast for fiscal 2017, and this marks at least the fifth quarter in a row of an earnings beat. Shares are up modestly at this hour.


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Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Goldman Sachs Group, Inc. (The) (GS) : Free Stock Analysis Report
 
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
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