JPMorgan Forecasts Declines for Interest Income — WSJ

/ / Financials /

By David Benoit The booming gains in lending profits at JPMorgan Chase and other banks may be ending. Throughout 2023, the biggest bank in the country benefited from higher interest rates and had to continually increase its forecast for net-interest income, the amount of revenue it collects from loans minus what it pays for deposits and funds. It earned a record $89.27 billion in net-interest income in 2023, up 34% from the prior year. Friday, JPMorgan forecast lending profits would slide to $88 billion for 2024, minus its volatile markets business. Their forecast assumes 6 rate cuts in the new year, a decline in deposits and muted loan growth. The forecast looked like a steeper decline when compared to the rate it was earning in the fourth quarter, CFO Jeremy Barnum said, calling for “meaningful sequential quarterly declines throughout 2024.” Wells Fargo is also forecasting net-interest income will fall in […]

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Uber Technologies, Inc. (NYSE:UBER) Stock Analyst Ratings

/ / Consumer Discretionary /

Uber Technologies, Inc. (NYSE:UBER) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/12/2024 20.64% Goldman Sachs $59 → $78 Maintains Buy 01/11/2024 20.64% Goldman Sachs $59 → $78 Maintains Buy 01/09/2024 6.72% BMO Capital → $69 Initiates Coverage On → Outperform 12/29/2023 -4.11% Nomura $59 → $62 Downgrades Buy → Neutral 12/19/2023 8.27% Keybanc $61 → $70 Maintains Overweight 12/04/2023 16% Oppenheimer $65 → $75 Maintains Outperform 12/01/2023 -4.11% JMP Securities → $62 Reiterates Market Outperform → Market Outperform 11/30/2023 -2.56% Needham → $63 Reiterates Buy → Buy 11/30/2023 11.36% Tigress Financial $66 → $72 Maintains Buy 11/13/2023 -4.11% JMP Securities $57 → $62 Maintains Market Outperform 11/08/2023 -4.11% Morgan Stanley $60 → $62 Maintains Overweight 11/08/2023 -4.11% Roth MKM $61 → $62 Maintains Buy 11/08/2023 -4.11% JP Morgan $56 → $62 Maintains Overweight 11/08/2023 -10.29% Truist Securities $60 → $58 Maintains

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Delta Air Lines 4Q Profit, Revenue Up

/ / Consumer Discretionary /

Delta Air Lines is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Delta reported a top- and bottom-line beat with its fourth-quarter results. Income was $2.04 billion, or $3.16 a share, compared with $828 million, or $1.29 a share, in the prior year’s quarter. Adjusted earnings per share, which excludes nonrecurring items, came in at $1.28, compared with $1.48 in the same period last year, and beat the FactSet consensus of $1.16. Revenue was $14.2 billion, a 6% increase from the prior year’s quarter. Analysts surveyed by FactSet were looking for revenue of $13.5 billion. Dow Jones & Co. owns Factiva.

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Citigroup Says Card Spending Growth Flat In 4Q

/ / Financials /

Slower spending by U.S. cardholders continued in 4Q, according to Citigroup. Citi says U.S. credit card spend volume was up 2% year-on-year, the same growth rate as in the previous quarter. That is a slowdown from in late 2022 and early 2023, when credit card volumes grew 7% from a year earlier, according to Citi results. Weaker spending growth among cardholders is a sign of slumping spending by consumers amid higher interest rates and dwindling pandemic-era savings.

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CFRA Retains Buy Rating On Shares Of Jpmorgan Chase & Co.

/ / Financials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our $190 target, a forward P/E of 11.9x, below the three-year historic average at 12.3x. We raise our 2024 EPS view by $0.05 to $16.00 and set 2025’s at $16.30. Q4 2023 adjusted EPS was $3.97, a $0.36 earnings beat. A soft landing for the U.S. economy bodes well for loan growth, which offsets lower rates for net interest income (NII). In 2024, JPM is guiding for NII at $90B vs. $94B in 2023. In Q4 2023, NII rose 19% Y/Y, with an interest rate spread at 2.03% vs. 1.99% Y/Y (2.00% Q/Q) and total loans +20% Y/Y, while deposit-related fees were +3%. Consumer net revenue was +15%, with banking/wealth management +7%, home lending +50%, and card services and auto +14%. Commercial banking revenue was

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JPMorgan Chase & Co. (JPM) Q4 2023 Earnings Call Transcript Summary

/ / Financials /

The following is a summary of the JPMorgan Chase & Co. (JPM) Q4 2023 Earnings Call Transcript: Financial Performance: JPMorgan Chase reported Q4 net income of $9.3 billion and revenue of $39.9 billion and for the full year, the firm reported a net income of $50 billion and revenue of $162 billion. The firm’s revenue increased by 7% year-on-year. Credit costs were $2.6 billion due to increases in Card and single-name exposures in Wholesale. Consumer & Community Banking saw an 8% year-on-year revenue increase due to strong account growth and stable consumer spend. Commercial Banking reported a 7% year-on-year revenue increase primarily driven by higher NII. JP Morgan’s Asset & Wealth Management reported a net income of $925 million with 28% pretax margin due mainly to higher management fees on strong net inflows and market levels, offset to some extent by lower NII. The estimated net interest income ex-Markets for

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CFRA Maintains Hold Opinion On Shares Of Bank Of America Corporation

/ / Financials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target price by $2 to $35 on a forward P/E of 10.6x our 2024 EPS view, in line with peers. We lower our 2024 EPS by $0.10 to $3.30 and start 2025’s at $3.40. BAC posted Q4 2023 adj. EPS of $0.70, a $0.05 earnings beat. We see total revenue of $100.4B (prior $100.6B) in 2024 and $103.2B in 2025. In Q4 2023, total loans were flat as well as total deposits of $1.9T. Total net interest income (NII) was -5% Y/Y and -3% Q/Q, while noninterest income was -19% Y/Y and -26% Q/Q. Consumer Banking was -4%, with lower NII -3% and flat Y/Y results for card income and service charges. Global Wealth and Investment Management realized a 3% revenue decline and total

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Cost Concerns Weigh on Airline Shares

/ / Consumer Discretionary /

Delta Air Lines shares tumble as the airline trims its profit outlook for the year, citing higher costs of wages, inflation, and supply chain snarls. Delta now expects profits this year between $6 and $7 a share–a modest reduction from the more than $7 per share it had previously predicted for 2024. CEO Ed Bastian says on an earnings call that he believes Delta could pull off profits above the upper end of the guidance range, but felt more caution was warranted. Airlines including Delta have struck new contracts with massive pay increases for pilots, and Delta said it also expects higher maintenance costs. Delta shares fall 8% and concerns that the industry remains vulnerable to cost creep dragged shares of other carriers down as well, with American Airlines and United Airlines also off sharply.

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FedEx Stock Ended the Year on a Rough Patch. Why It’s Time to Buy. — Barrons.com

/ / Industrials /

By Jacob Sonenshine FedEx stock has been hit hard in recent weeks, but the worst of the company’s problems are likely over. It’s time to buy. Last year ended on a low note for FedEx, whose stock has dropped 11%, to $250, since Dec. 19. On that date, the company said its fiscal 2024 sales would fall at a low single-digit rate, down from its previous guidance for flat growth. Management blamed the miss on a decline in the number of shipments, which was partially offset by rising prices. It wasn’t all bad, though. While sales guidance came down, management maintained its profit outlook, calling for per share earnings to come in at $17.75 at the midpoint of its range for the year. FedEx is overhauling its cost structure for calendar year 2024, and analysts expect an operating margin of 7.5%, up from this year’s 6.5%. “[FedEx deserves] the benefit

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