Financials

Dimon’s Comments Are a Rarity; JPMorgan Will Limit Buybacks at Higher Prices — Barrons.com

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By Andrew Bary JPMorgan Chase CEO Jamie Dimon’s frank talk on stock repurchases Monday is rare for a corporate leader but ought to be heeded by his fellow corporate chieftains. At the company’s investor day, Dimon said the company would limit its stock repurchases given the elevated price of the JPMorgan stock. “We’re not going to buy back a lot of stock at these prices,” Dimon told attendees at the investor day. JPMorgan stock has returned about 45% over the past year and recently hit a record high. “We’ve been very, very consistent,” Dimon said. “When the stock goes up, we’ll buy less and when it comes down, we’ll buy more,” he added. Dimon’s view is espoused publicly by few CEOs save for Berkshire Hathaway’s Warren Buffett. Companies regularly repurchase stock regardless of price. Why? CEOs may truly believe their shares are undervalued even at high prices or they are […]

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JPMorgan: Dimon Didn’t Mean No Stock Buybacks — WSJ

/ / Financials /

JPMorgan Chase shares fell 4.5% on Monday, not the kind of reception it usually hopes to get on its annual investor day. One contributor: Chief Executive Jamie Dimon implied the shares had gotten so high he didnt want to buy back any more shares. Later Monday, the bank looked to clarify Dimons comments. A JPMorgan spokesman said that Dimon’s comments on buybacks referred to additional repurchases of stock beyond the pace at which the bank is already buying back stock. Not that the bank is stopping all repurchases. Indeed, JPMorgan’s chief financial officer said the bank is increasing how much it buys back from shareholders, totaling over $2 billion of repurchases every quarter.

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CFRA Keeps Buy Opinion On Class B Shares Of Berkshire Hathaway Inc.

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Berkshire just disclosed in its latest SEC holdings filing that the stock it has been confidentially building an equity position in is property-casualty insurer Chubb Ltd (CB 253 ****). Berkshire disclosed that it owns some 25.9 million CB shares, worth about $6.6 billion, making the CB position a top-ten holding for Berkshire. Our view of CB is positive as well, and we believe the shares are undervalued versus peers. We expect CB shares to open higher tomorrow morning (May 16), as investors react to this news and speculate whether Berkshire will keep an equity stake in CB or pursue an outright acquisition. BRK’s current equity stake gives the firm exposure to one of the best performing financial sector subgroups at a below-peer valuation. We can’t speculate whether Berkshire would pursue an outright acquisition of CB, but we note their business mixes are highly complementary.

CFRA Keeps Buy Opinion On Class B Shares Of Berkshire Hathaway Inc. Read Post »

CFRA Keeps Buy Opinion On Class B Shares Of Berkshire Hathaway Inc.

/ / Financials /

Berkshire just disclosed in its latest SEC holdings filing that the stock it has been confidentially building an equity positon in is property-casualty insurer Chubb Ltd (CB 253 ****). Berkshire disclosed that is owns some 25.9 million CB shares, worth about $6.6 billion, making the CB position a top-ten holding for Berkshire. Our view of CB is positive as well, and we believe the shares are undervalued versus peers. We expect CB shares to open higher tomorrow morning (May 16), as investors react to this news and speculate whether Berkshire will keep an equity stake in CB or pursue an outright acquisition. BRK’s current equity stake gives the firm exposure to one of the best performing financial sector subgroups at a below-peer valuation. We can’t speculate whether Berkshire would pursue an outright acquisition of CB, but we note their business mixes are highly complementary.

CFRA Keeps Buy Opinion On Class B Shares Of Berkshire Hathaway Inc. Read Post »

CFRA Keeps Buy Opinion On Class A Shares Of Berkshire Hathaway Inc.

/ / Financials /

Berkshire just disclosed in its latest SEC holdings filing that the stock it has been confidentially building an equity positon in is property-casualty insurer Chubb Ltd (CB 253 ****). Berkshire disclosed that is owns some 25.9 million CB shares, worth about $6.6 billion, making the CB position a top-ten holding for Berkshire. Our view of CB is positive as well, and we believe the shares are undervalued versus peers. We expect CB shares to open higher tomorrow morning (May 16), as investors react to this news and speculate whether Berkshire will keep an equity stake in CB or pursue an outright acquisition. BRK’s current equity stake gives the firm exposure to one of the best performing financial sector subgroups at a below-peer valuation. We can’t speculate whether Berkshire would pursue an outright acquisition of CB, but we note their business mixes are highly complementary.

CFRA Keeps Buy Opinion On Class A Shares Of Berkshire Hathaway Inc. Read Post »

Wall Street Turns Up the Heat on Companies to Perform — WSJ

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By Hardika Singh Wall Street is showing little patience for companies that don’t live up to expectations. With the first-quarter earnings season nearly over, companies in the S&P 500 are on pace to deliver a 5.4% jump in profits from a year ago, the biggest increase in nearly two years, according to FactSet. But those that fall short of investor forecasts are being punished more heavily than usual. Shares of companies that missed estimates have slid an average of 2.8%, compared with the five-year average of a 2.3% decline. Meanwhile, companies that outperform aren’t being given any special prizes. Those that beat analyst forecasts have seen their shares gain an average 0.9%, roughly in line with the five-year average of a 1% advance. That is according to FactSet data that looked at share prices in the two days before companies reported through the two days after. “[The market] won’t ask

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Robinhood Markets, Inc. (HOOD) Q1 2024 Earnings Call Transcript

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Robinhood Markets (HOOD)Q1 2024 Earnings CallMay 08, 2024, 5:00 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:   Operator Hello and welcome to Robinhood first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator instructions] I would now like to turn the call over to Chris Koegel, VP of corporate FP&A and investor relations. You may begin. Chris Koegel — Vice President, Investor Relations and Corporate Financial Planning and Analysis Thank you, Joanda, and thank you, everyone, for joining Robinhood’s Q1 earnings call. With us today are CEO and Co-Founder Vlad Tenev and CFO Jason Warnick. Before getting started, I want to remind you that today’s call will contain forward-looking statements. Actual results could differ materially from our expectations, and we have no duty to provide updates unless legally required. Potential risk factors

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CFRA Keeps Buy Recommendation On Shares Of Moody’s Corporation

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We maintain our target price at $460, on a forward P/E of 36.3x our 2025 earnings estimate, a premium to MCO’s three- and 10-year forward historical averages of 31.9x and 26.4x, respectively, given an improving margin profile and expectations for rapid earnings growth. We increase our 2024 EPS estimate by $0.28 to $11.42 and raise 2025’s by $0.05 to $12.68. MCO posted Q1 adjusted EPS of $3.37 versus $2.99, $0.35 above consensus on revenue of $1.79B (6% above consensus). Leading the outperformance was MIS (the ratings segment), which saw revenue surge 35% Y/Y to $987M, the second highest level on record. However, 8% growth in MA (the analytics segment) disappointed given weakness in Research & Insights. Still, MCO kept its operating expenses (+8%) in check; thus, the

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Moody’s Corporation (MCO) Q1 2024 Earnings Call Transcript

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Moody’s Corporation (NYSE:MCO) Q1 2024 Results Conference Call May 2, 2024 11:30 AM ET Company Participants Shivani Kak – Head of Investor Relations Rob Fauber – President and Chief Executive Officer Noemie Heuland – Senior Vice President & Chief Financial Officer Conference Call Participants Heather Balsky – Bank of America Manav Patnaik – Barclays Toni Kaplan – Morgan Stanley Ashish Sabadra – RBC Capital Markets Andrew Nicholas – William Blair Scott Wurtzel – Wolfe Research Faiza Alwy – Deutsche Bank Jeff Silber – BMO Capital Markets George Tong – Goldman Sachs Craig Huber – Huber Research Jeff Meuler – Baird Andrew Steinerman – JPMorgan Russell Quelch – Redburn Owen Lau – Oppenheimer Craig Huber – Huber Research Shlomo Rosenbaum – Stifel Operator Good day, everyone, and welcome to the Moody’s Corporation First Quarter 2024 Earnings Call. At this time, I would like to inform you that this conference is being

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MSCI Shares Already Price In Worst-Case Scenario, BofA Says in Upgrade

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MSCI (MSCI) is a quality business at a discount, with the recent stock pullback already pricing in an “unlikely worst-case scenario” and the company is likely to see upside support from buybacks, BofA Securities said in a note Tuesday. BofA said it expects multiple expansions as investors are likely to be attracted to a high-quality long-term growth story at a discount. The company’s shares derated after it reported heavy Q1 cancellations, which management “indicated was a one-off event and bad timing,” the note said. “We think the business is in better shape than valuation reflects, although slowing ESG sales and weak near-term Index subscription growth will cap upside,” BofA said, adding it expects $425 million of buybacks this year “with room for upside.” “At a 7% discount to peers, MSCI shares are likely to attract incremental investor interest, in our view,” the note said. “MSCI is a double-digits EPS compounder

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Franklin Resources, Inc. Announces Second Quarter Results

/ / Financials /

Franklin Resources, Inc. Announces Second Quarter Results SAN MATEO, Calif.–(BUSINESS WIRE)–April 29, 2024– Franklin Resources, Inc. (the “Company”) (NYSE: BEN) today announced net income(1) of $124.2 million or $0.23 per diluted share for the quarter ended March 31, 2024, as compared to $251.3 million or $0.50 per diluted share for the previous quarter, and $194.2 million or $0.38 per diluted share for the quarter ended March 31, 2023. Operating income was $129.3 million for the quarter ended March 31, 2024, as compared to $206.5 million for the previous quarter and $255.1 million for the prior year. As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Adjusted net income(2) was $306.6 million and adjusted diluted earnings per share(2) was $0.56 for the quarter ended March 31, 2024, as compared to $328.5 million and $0.65 for the previous quarter,

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S&P 500 Companies’ Latest Quarterly Results Mixed so Far, Oppenheimer Says

/ / Financials /

S&P 500 companies’ quarterly financial results have been mixed so far in the current reporting cycle, with signs of both “strength and softness,” Oppenheimer Asset Management said Monday. The brokerage said that 228 companies in the benchmark equity index have already reported results in the ongoing season, with earnings up 3.4% year over year overall on the back of a 3.9% increase in revenue. Eight of the 11 sectors have showed positive earnings growth, led by a 41% surge in communication services. Healthcare is leading the decliners, down 36%, followed by energy and materials posting double-digit declines, the firm said in a note. In terms of sales growth, 141 companies have reported positive results, while 75 have logged negative results. Technology and communication services sales are up more than 8% each on an annual basis, while utilities, energy and materials are down, according to the note. Microsoft (MSFT), Facebook parent

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