April 10-12, 2024 Earnings Reports: Delta, JP Morgan, Wells Fargo & More

This week, traders and investors alike may want to keep an eye out for the upcoming corporate earnings releases from various companies to get a better picture of how the overall economy is faring. 

From Delta Air Lines to big banks, here are this week’s most anticipated earnings reports:

DAL’s Earnings: Will Boeing’s Woes Affect Delta’s Performance?

American airline giant, Delta Air Lines (DAL) is scheduled to report earnings on Wednesday, April 10. Following the less-than-rosy headlines made by planemaker Boeing (BA) whose crafts are used by many airlines including Delta, traders may be interested in seeing how this might affect the former’s stock performance.

Boeing has been undergoing regulatory scrutiny due to manufacturing issues and malfunctions in some models that have compromised safety. For example, following an incident in early January, whereby a plane door panel blew out, a preliminary report by the National Transporation Safety Board (NTSB) revealed that the door had four key bolts missing from it. Additionally, it was reported that Boeing “misdrilled holes on 50 undelivered fuselages of 737 Max jets.” 

As such, and perhaps unsurprisingly, this may have led to an apprehension towards the aeroplane sector. Nonetheless, despite Boeing’s dreary performance, it seems that Delta has had a strong year so far as it rose over 16.2%. As for the results, analysts seem to be bullish as they expect the company to report an adjusted EPS of $0.35 on revenue of $12.47 billion. If these predictions materialise, it would be above the previous quarter’s figures of $0.25 a share and revenue of $11.84 billion.

Nonetheless, these are only projections, and only time will tell what lies ahead of this aviation leader.

Big Bank Earnings: How Is the Financial Sector Faring?

Following a tumultuous 2023 for the banking industry, whereby many big banks’ stocks slid and experienced losses, Friday, April 12th’s big bank earnings may be helpful to those seeking insights on the state of this sector. Here are the most notable earnings releases and what to expect:

JP Morgan Chase & Co. 

America’s biggest bank is expected to report an EPS of $4.18 on revenue of $41.8 billion, compared to last quarter’s EPS of $3.04 and revenue of $38.6 billion. In addition, since the start of the year, this banking giant soared by 15.9%.

Nonetheless, despite the more positive outlook and performance, it is important to keep in mind the economic hurdles that may loom over the financial sector and the markets, in general. According to JP Morgan’s CEO, Jamie Dimon, there’s still a chance for “stickier inflation and higher rates than markets expect.” He also mentioned the geopolitical tensions that may also take a toll on the economy.  Accordingly, Dimon stresses the importance of remaining “cautious.”

Wells Fargo 

According to Zacks Investment Research analysts, Wells Fargo (W) is projected to release an adjusted EPS of $1.10 on revenue of $20.17 billion. If these projections come to fruition, it would mark a profit loss of 11% and a revenue loss of 3%. Interstingly, despite experiencing volatility here and there, Wells has overall had a strong 2024 so far as it gained about 17.1% since the start of the year.

Citigroup Inc. 

Citigroup’s EPS is expected to come in at $1.41 and its revenue at $20.3 billion, marking YoY drops of 24.2% YoY and 5.5% respectively. Among the factors that are expected to have pushed the stock’s performance lower are “pre-announced restructuring charges” and increased FDIC scrutiny. Regardless of these anticipated losses, it is worth noting that Citigroup has actually gained about 16.3% since the start of the year. (Source: Yahoo Finance)

Conclusion

This week marks an important one for the overall economy, in general, and the aviation and financial sectors, in particular. Earnings from Delta Air Lines and big banks like JP Morgan, Citigroup, and Wells Fargo may provide investors and traders with much-needed insights into the state of the markets and the global economy. Only time will tell what these companies will reveal in their earnings reports and how the markets will react in response.