Earnings Week Ahead: Q4 Season Start with Delta Air Lines and Major Banks such as BlackRock, Citigroup, Wells Fargo and JPMorgan


FXEmpire.com –

This week will also bring us an inflation report, talks between the US and Russia and plenty of discussions with the Fed. Below is a list of income slated for release from January 10-14, along with some previews. Investors will be watching the latest news on the fast-spreading variant of the Omicron coronavirus closely to see how it affects earnings in 2022.

Earnings schedule for the week of January 10

Monday (January 10)

TELEPRINTER BUSINESS EPS FORECAST
AZZ AZZ $0.82
CMC Trade metals $1.29
TLRY Tilray -$0.09

Tuesday (January 11)

TELEPRINTER BUSINESS EPS FORECAST
SNX TD Synnex Corp. $2.6
AIT Albertson $0.55

Wednesday (January 12)

TELEPRINTER BUSINESS EPS FORECAST
INFI Infosys $0.17
I F Jefferies Financial Group $1.4
KBH Knowledge base home $1.77
RDS Shaw Communications $0.3
VOLT Volt Information Sciences $0.07

Thursday (January 13)

SPOTLIGHT: DELTA AIR LINES

Delta Air Lines, one of the major players in the aviation industry in the United States, is expected to report earnings per share (EPS) of $0.11 in the fourth quarter, more than double from a huge loss of – $2.53 per share observed at the same period a year ago.

The airline, which provides scheduled passenger and cargo air transport in the United States and around the world, is expected to see revenue growth of more than 130% to around $9.2 billion. It’s worth noting that in the past two years, the airline has only beaten consensus earnings estimates four times.

According to ZACKS Research, based on strong holiday passenger demand, Delta Air Lines has raised its guidance for the fourth quarter of 2021. It expects to achieve “significant” profitability in 2022 despite Omicron-induced woes. In the December quarter, the airline expects to make about $200 million in adjusted pretax profits, according to an SEC filing.

Compared to the same period last year, Delta expects to recover 74% of its total adjusted revenue (excluding third-party refinery sales) in the fourth quarter. In 2022, DAL expects its capacity to reach approximately 90% of its 2019 level. In 2023 and beyond, it expects to reach pre-pandemic capacity levels. With adjusted (non-refinery) revenue exceeding $50 billion in 2024, the company expects earnings per share to top $7, ZACKS analysts noted.

“Management. outlined a plan to meet and exceed pre-pandemic financial benchmarks by 2024 by creating a premier premium airline. The plan is solid and the targets appear conservative although the short term trajectory remains beyond management’s control. We see the line of sight to the stock doubling from here,” noted Ravi Shanker, equity analyst at Morgan Stanley.

“Why overweight? Delta Air Lines (DAL) has some of the highest customer satisfaction numbers among other Legacy peers, while also commanding a higher PRASM, making it our preferred Legacy carrier. While DAL cannot escape Legacy overhangs (international/corporate recovery delayed, balance sheet strained), it is expected to rise with the industry tide. The risk-reward ratio looks attractive.

TAKE A LOOK AT OUR BENEFITS CALENDAR FOR FULL RELEASES ON JANUARY 13

TELEPRINTER BUSINESS EPS FORECAST
TSM Semiconductor manufacturing in Taiwan $1.14

Friday (January 14)

SPOTLIGHT: BLACKROCK, CITIGROUP, JPMORGAN, WELLS FARGO

BLACK ROCK: The world’s largest asset manager is expected to report fourth-quarter earnings of $10.14 per share, down about 0.4% year-on-year from the $10.18 per share recorded at the same period a year ago.

The New York-based multinational investment management firm is reported to show nearly 15% revenue growth to around $5.15 billion. The company has been able to beat earnings per share (EPS) estimates most of the time over the past two years.

“We believe BlackRock (BLK) is best positioned on the asset management bar given the leading, multi-asset and alts iShares ETF platform combined with technology/Aladdin offerings which are expected to drive ~11% CAGR EPS (2020-23rd) via ~6% average long-term organic growth,” noted Morgan Stanley equity analyst Michael Cyprys.

“We expect further growth for Alts, iShares, international penetration and the US institutional market. Recently acquired Aperio also strengthens the solutions offering and organic growth. We expect the premium to continue. expands as BLK takes part in the evolution of the industry and strives to improve the trajectory of organic revenue growth.

CITIGROUP: The New York-based investment bank is expected to report fourth-quarter earnings of $1.87 per share, down about 10% year-on-year from $2.07 per share in the same period one year ago. But the third American banking institution would show revenue growth of nearly 4% to $17.06 billion.

“While the stock is cheap at 0.6x NTM BVPS and the new CEO is taking strong and proactive strategic steps to increase returns closer to peers, we believe these actions will take time to materialize,” noted Betsy Graseck, equity analyst at Morgan Stanley. .

“Citi is exiting 13 consumer businesses in Asia and EMEA and focusing on the highest growth areas of US consumer, WM Asia, international wholesale payments and consumer. These stocks could push ROE above the 9% we model for 2023, but we expect the stock to only begin to fully reflect this when earnings begin to pick up. Citi is benefiting less than its peers from higher rates, and we expect some of our most rate-sensitive stocks to outperform as the Fed begins raising rates next year.

JP MORGAN: The leading global financial services company with assets of more than $2 trillion is expected to report fourth quarter earnings of $2.94 per share, representing a year-over-year decline of more than 20% from the 3 $.79 per share recorded at the same period a year ago. . But one of the world’s oldest, largest and best-known financial institutions would show revenue growth of just over 2% to $29.9 billion.

WELLS FARGO: The fourth-largest US lender is expected to report fourth-quarter earnings of $1.11 per share, representing more than 70% year-on-year growth from $0.64 per share in the same period a year ago . The multinational financial services company based in San Francisco, Calif., would show revenue growth of more than 4% to $18.8 billion.

“Wells Fargo (WFC) benefits EPS from rate hike is the highest in the group, with each increase of approximately 50 basis points in FF resulting in an increase of approximately 15% in EPS; 50 bps of long-term rates drive ~7% EPS WFC is in a strong position to monetize higher rates as cash is 15% of earning assets, 7% points above pre- pandemics,” noted Betsy Graseck, an equity analyst at Morgan Stanley.

“WFC is taking steps to restructure its business mix as it strives to exit the Fed consent order/asset cap and reduce its expense base. Excess capital at Wells stands at 10% of market cap versus 5% for the median large-cap bank, enabling a net redemption yield of 10% in 2022 and a total cash return of 12%. The risks associated with the timing of the removal of the asset limit and other regulatory measures remain. »

TAKE A LOOK AT OUR BENEFITS CALENDAR FOR FULL RELEASES ON JANUARY 14

TELEPRINTER BUSINESS EPS FORECAST
VS Citigroup $1.87
JPM JPMorgan Chase $2.94
NOIR black rock $10.15
WFC Wells Fargo $1.11

This article originally appeared on FX Empire

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