It’s earning seasons, folks — time to place your bets! This earning season, major companies JPMorgan (JPM), BlackRock (BLK), and Delta Airlines (DAL) have fallen short.
American multinational investment management corporation BlackRock (BLK) kicked off the season with a reported first quarter (Q1) $1.4b net income. Earnings per share beat analyst expectations coming to $9.35 versus the expected $8.70. Revenue came to $4.7b, a notch below analyst expectations of $4.73 billion. Shares dropped by 22%, and the stock has fallen overall 11% in the last 12 months.
Speaking of multinational investments, JPMorgan (JPM), the multinational investment bank and financial services holding company, saw similar shortfalls. Earnings per share amounted to $2.63, a few cents shy of Wall Street expectations of $2.69. Revenue, however, beat expectations totaling $31.59b versus $30.53b. The US’s largest lender was hurt by its high loan losses, dropping by a $902m net reserve build. The bank has cited inflation and the war in Ukraine as primary reasons.
Let’s switch to airlines… American legacy carrier Delta Air Lines (DAL) has reported a shortfall of earnings per share, reporting $1.23 versus an expected $1.27. Revenue, similar to JPMorgan, was sweet with a reported $9.35b versus an expected $8.92b. Although jet fuel costs are up 50%, the airline's company holds hope for profit as bookings skyrocket with lower covid restrictions.