Quarterly earnings continued to roll out on Wednesday. U.S. Bancorp jumped, leading a flurry of early reports from banks. Logistics leader J.B. Hunt retreated sharply after its results. Steel Dynamics edged out earnings views late Wednesday. STLD stock is basing and back above support. United Airlines and Discover Financial Services reported earnings well above forecasts after market close Wednesday.
Banks have been rebounding since last week's CPI report, which strengthened expectations for a Federal Reserve interest rate cut.
Results Roundup
U.S. Bancorp on Wednesday reported earnings fell to 98 cents per share, still above FactSet estimates of 95 cents. Total revenue slid to $6.9 billion, ahead of views for $6.81 billion. Net interest income was just over $4 billion for the quarter, also topping expectations. U.S. Bancorp did not report any provisions for credit losses, compared to $243 million it set aside for credit losses last year.
USB stock surged 4.6% Wednesday to mark eight consecutive daily gains. Shares are consolidating just below a 45.85 buy point.
Citizens Financial earnings fell for the fifth straight quarter, to 78 cents per share — matching FactSet estimates. Adjusted earnings for the quarter came out to 82 cents per share, falling from $1.04 last year. Total revenue fell 6.4% to $1.96 billion and just beat forecasts. Net interest income fell 11% and barely missed views of $1.413 billion. Citizens also guided Q3 net interest income to decline about 1% to 2%.
CFG stock jumped 3.3% Wednesday. Citizens is trading just above a cup base buy zone following a July 11 breakout.
Ally Financial reported a 1 cent increase in adjusted earnings to 97 cents per share, which was well above FactSet expectations of 64 cents. Total revenue slid 4% to $2 billion, just below views of $2.03 billion.
ALLY stock fell 2.3% Wednesday, paring its gains above a cup-with-handle buy point.
J.B. Hunt Transport fell early Wednesday after earnings tumbled 27%. The trucking company reported earnings of $1.32 per share, well below views of $1.48 per share. Second-quarter revenue fell 7% to $2.93 billion, also missing forecasts for $3.02 billion. Final mile services revenue rose slightly, but was offset by declines in gross revenue per load and load volume across its business segments.
JBHT stock retreated 6.9% Wednesday. Shares advanced the last five days leading up to the results.
Late Reports
Steel Dynamics edged out earnings expectations by 1 cents and reported a 43% drop in earnings to $2.72 per share. Total revenue fell almost 9% to $4.63 billion, but beat forecasts for a 12.8% decline.
STLD shares rose slightly late Wednesday. The stock is consolidating with a 151.34 buy point. Shares are trading back above support after rebounding above their 50-day moving average last week.
United Airlines reported earnings fell nearly 18% to $4.14 per share adjusted, but beat estimates of $3.93 per share. Total revenue rose 5.7% to $14.98 billion, but didn't quite reach the 6% growth that analysts expected. United maintained its full-year adjusted earnings guidance of $9 to $11 per share.
UAL stock eased slightly late Wednesday after results.
Discover reported a 71% earnings spike to $6.06 per share, crushing forecasts for $3.10 per share. Total revenue rose 17% to $4.54 billion, outpacing the 7.7% growth that FactSet expected.
Elsewhere, Discover on Wednesday announced an agreement to sell its private student loan portfolio to Carlyle and KKR for $10.8 billion. Discover said the principal balance of the loan portfolio was about $10.1 billion as of June 30.
DFS stock swung 2% higher late Wednesday. Shares are extended above a buy zone for a flat base after scoring a breakout last week. However, the stock's fundamentals are less than ideal.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
