Tag Archives: Earnings per share

by | July 16, 2019 · 7:53 pm

Bank of America is “too big to fail” and its cost-cutting strategy is in focus

Bank of America is the second-largest bank in the U.S, and the company is expected to post quarterly earnings on Wednesday before market open. Bank of America is expected to earn $0,76 per share and that`s five cents ahead of the Wall Street.

If this number holds it would be a 12,7% change YoY. Their revenue are expected to be $23,04 billion and that is a whopping 1,9% from the same quarter last year.

The bank have benefited huge from a roring U.S economy and most of the profits is coming from its consumer bank, but all major business segments have increased the profits. All this thanks to healthy loan and deposit growth.

Its net interest income growth have also risen thanks to rising interest rates. Like all other banks, Fed`s change in policy is negative for the bank and a cut in interest rate will decrease NII. Lower interest rate will also trigger a recession, but that`s another story. The Fed is extremely dovish and that in turn will make the banks forward return to decline the next months.

Bank of America is the second-largest bank of the four «too big to fail» money center banks, and its P/E is only 10,85 with a dividend yield of 2,04%. The bank has a streak of 12 conssecutive quarters of beating EPS estimates on the line. The focus this time is its cost-cutting strategy.

The chart for the bank showed a golden cross in late March this year, but that has not been a great signal so far. It remain to see the stock to go higher.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Stocks, Uncategorized

Tagged as , , , , ,

by | February 18, 2014 · 2:18 pm

Earnings reports

Nikkei rose 3,13% today. What a jump! This jump is based on good news for Bank of Japan (BOJ). The BOJ kept monetary policy steady and maintained its upbeat assessment on the economy. It also decided to extend three special loan facilities.

It is mixed in Europe and it seems like the U.S markets will open up today. Gold is trading down -0,34% at $1314,50. Silver is down -0,03%, trading at $21,41. Copper is up +0,32%, trading at 327,50.

Earnings reports to follow today: Coca cola (KO) is reporting for the quarter ending December 31, 2013. Consensus earnings per share is $0,46. This is a 2,22% increase compared to the earnings for the same quarter last year.

Norwegian Cruise Line Holdings Ltd (NCLH) is reporting for the quarter ending December 31, 2013. The companies consensus earnings per share forecast is $0,17. This is a 1600% increase compared to the same period last year. Price to earnings for NCLH is 26,90, while the industry ratio is 22,10, which means NCLH have a higher earnings growth than their competitors.

I look forward to the earnings report from Tesla (TSLA) tomorrow. The report will be for the fiscal Quarter ending December 2013. Consensus Eearnings per share forecast for the quarter is $0,04. EPS for the same periode last year was $-0,78. A great jump!

tesla

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

Leave a comment

Filed under Commodities, Stock market, Stocks

Tagged as , , , ,

by | February 10, 2014 · 2:24 pm

Gold is up

Gold continue to go up, now trading at 1271,50. Nikkei rose +1,77%. Up 255,93 points. The European markets is mixed today, but are not moving much. The U.S markets ended the week in green on friday. Dow +1,06%, S&P 500 +1,33% and Nasdaq +1,69%. Nokia is up 9,27%. Very good!

I will look for earnings reports from Tata Motors (TTM) today. Forecast EPS is $0,87 ($0,47 last year). The report will be for the fiscal Quarter ending Dec 2013. Many other earnings reports is coming out later this week.

Alibaba is trying to take full control over AutoNavi Holdings (AMAP). The stock is trading at $16,54. Up +7,26%. AutoNavi holdings is up 27,87% AH. EPS growth: -128%. Revenue growth: -6,02%. (Last Qtr).

Take a look a the gold this week. It`s still moving up. Sometimes it goes in the opposite direction of the equity market, and sometimes not. They can follow each other, so don`t forget to set «stop loss» if you are daytrading.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Commodities, Stock market, Stocks

Tagged as , , , , , ,

by | January 15, 2014 · 1:37 pm

Tesla up 384,9%

The numbers from J.P. Morgan is important because it is a significant indicator of the fundamental performance by the key banking sector. J.P Morgan has exposure in many banking businesses. J.P Morgan reported an earnings per share of $1,30. That`s below the consensus of $1,31.

Wells Fargo was also better than expected. They earned $1 per share i Q4 last year. That`s also a little bit above consensus of $0,98. Total loan and deposits grew and a strong capital position and returns on assets and equity was positive reports. Great!

Yesterdays reports was not that surprising. J.P Morgan and Wells Fargo are the strongest banking institutions. All the positive readings about the retail points out all the positive revisions to Q4 GDP estimates. That`s why the news about non-farm payrolls gave some people headache.

Tesla shares rose 15,7% yesterday after a strong report. The same company is up 384,9% last 12 months. Vice president of sales, Jerome Guillen, said they delivered 6,900 Model S electric sedans in Q4 last year, and that is up 20% since Q3 last year. Wow! Detroit is back!

General Motors Co will start to pay quarterly dividend this March and this is the first time they have paid a dividend to shareholders since May 2008. The payout will cost GM about $1,67 billion a year. Dividend per share will be 30 cents on its common stocks.

The January effect this year have been two different asset classes. In December last year, investors wrote off long-term treasury bonds and gold bullion as lost. You all know about the declining gold prices in 2013. Falling gold prices and improving economic data led to more money into the stock market.

The iShares 20+ Year Treasury Bond ETF (TLT) was down -13,91% last year, while the SPDR Gold shares ETF (GLD) was down -28,33% in 2013. Both seems to have moved up so far in 2014. One of the key factors that the Fed members are watching to determine how fast they will start to taper is the Treasury bonds that have disappointed in the last payrolls data we all got. It is in conflict with the case for a better job outlook.

Bank of America Corporation (BAC) will release its Q4 reports today. The consensus earnings per share forecast is $0,27. That is up 800% since Q4 last year!

News today: PPI & Empire State Manufacturing at 8:30am, Crude Oil Inventories at 10:30am, Beige Book at 2:00pm.

TSLA 15.01.2014

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

1 Comment

Filed under Stock market, Stocks

Tagged as , , , , , ,

by | January 14, 2014 · 2:28 pm

Is this the end of the bull market?

Japan`s Nikkei is down 3,1%, while the broader Topix is down 2,3%. Nikkei is at its lowest since Dec 18, trading at 15,422,40. It is the biggest drop since Aug 7. The Yen rose after a weaker than expected U.S payrolls report.

European stocks are all down so far today. They are all disappointed about the earnings and outlook about profit growth. The S&P 500 slid yesterday 1,3% after a number of companies posted weak earnings or forecasts.

J.P Morgan Chase & Co are reporting earnings today. The report will be for the fiscal Quarter ending Dec 2013. Consensus EPS forecast for the quarter is $1,31. The reported EPS for the same quarter last year was $1,39.

Wells Fargo & Company is also expected to report earnings today. Consensus EPS forecast for the quarter is $0,98. The reported EPS for the same quarter last year was $0,91.

Tomorrow Bank of America Corporation is expected to report earnings, and the consensus EPS forecast for the quarter is £0,27. Last year it was $0,03. We look forward to see the numbers tomorrow.

Other reports: Tesla (TSLA) Feb 19, Nokia (NOK) Jan 23, Facebook (FB) Jan 29, Google (GOOG) Jan 20, Apple (AAPL) Jan 22, and Amazon (AMZN) Feb 04.

Remember: Stock prices follow earnings, but now they all seem to pay more and more for the same penny of earnings. The S&P 500 rose about 20% last 12 months. This cannot continue. When P/E is soar to much you know that we are at the end of a bull market.

The analysts estimated at the end of September last year that S&P 500 companies would grow earnings by 9,6% in Q4, 2013. Now they say it will grow by 6,3%. This a drop of only 3,3%. Usually it is an average of a drop of 5,8%. They are probably too optimistic?

This can be set for a major disappointment. Investors don`t like lower-than-expected profit growth. So, the companies have to deliver, or the stock prices could drop fast.

We know it is an obvious disconnect between the underlying economic data and the companies outlooks and that is a critical factor. The recent GDP report point to an economy that is accelerating. That means more economic activity and that means more sales and profits for the companies!

News today: Retail Sales & Import Prices at 8:30am at Business Inventories at 10:00am.

 Dow 14.01.2014

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

1 Comment

Filed under Stock market, Stocks

Tagged as ,