Coffee With Greta: Earnings Rush

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Good morning friends!

Futures are down as traders digest the latest earnings and look ahead to results from big tech names later today.

Let’s get right to it!

First Republic Tumbles After Earnings

First Republic Bank (FRC) shares are dropping 21% ahead of the open despite beating Q1 expectations as deposits plunged.

Here’s how the regional bank’s results compared to analysts’ estimates: 

• EPS: $1.23 vs $0.85 expected
• Revenue: $1.21 billion vs $1.15 billion expected

The bank said its deposits tumbled 40% in the quarter to $104.5 billion. 

That was lower than analysts’ expectations for deposits to be about $145 billion. 

But First Republic said deposit flows have since stabilized. 

The bank said, “Deposit activity began to stabilize beginning the week of March 27, 2023, and has remained stable through Friday, April 21, 2023. Total deposits were $102.7 billion as of April 21, 2023, down only 1.7% from March 31, 2023, primarily reflecting seasonal client tax payments that occur each April.”

The bank also announced new cost cutting efforts which include cuts to executive compensation, condensing office space, and reducing head count by 20% to 25% in Q2.

GM Tops Q1 Expectations, Hikes Guidance

General Motors (GM) shares are up 2.7% in premarket trade after beating Q1 expectations on the top and bottom line and raising its 2023 guidance. 

Here’s how the automaker’s results compared to analysts’ estimates: 

• Adjusted EPS: $2.21 vs $1.73 expected
• Revenue: $39.99 billion vs $38.96 billion expected

GM now expects full-year adjusted EPS of $6.35 to $7.35 vs $6 to $7 previously. 

The automaker also raised its expectations for adjusted automotive free cash flow to between $5.5 billion and $7.5 billion from $5 billion to $7 billion previously. 

McDonald’s Shares Rise After Earnings Beat

McDonald’s (MCD) shares are up 1% ahead of the open after beating Q1 expectations. 

Here’s how the fast food giant’s results compared to analysts’ estimates: 

• Adjusted EPS: $2.63 vs $2.33 expected
• Revenue: $5.9 billion vs $5.59 billion expected

McDonald’s reported same-store sales growth of 12.6% across all three of its divisions, fueled by higher menu prices. 

The company’s U.S. traffic rose for the third consecutive quarter.

PepsiCo Hikes Outlook After Earnings Beat

PepsiCo (PEP) shares are up 1.7% in premarket trade after beating Q1 expectations and raising its full-year outlook. 

Here’s how the beverage giant’s results compared to analysts’ estimates: 

• Adjusted EPS: $1.50 vs $1.39 expected
• Revenue: $17.85 billion vs $17.22 billion expected

Net sales rose 10.2% year over year while organic revenue jumped 14.3%.

Sales volumes in PepsiCo’s beverage business rose 1% and declined 3% in its food segment. 

Overall volumes were down 2% while prices were up 16%. 

PepsiCo now expects full-year 2023 organic revenue growth of 8% vs 6% previously.

3M Beats Q1 Estimates, Announces Layoffs

3M (MMM) shares are up 1.3% ahead of the open after beating Q1 expectations on the top and bottom line. 

Here’s how the industrial giant’s results compared to analysts’ estimates: 

• Adjusted EPS: $1.92 vs $1.60 expected
• Revenue: $7.7 billion vs $7.5 billion expected

3M maintained its full-year outlook for sales to drop 3% year over year and EPS between $8.50 and $9. 

The CEO said, “we continued our relentless focus on serving customers and aggressively managed costs” during Q1. 

As part of its cost cutting efforts, 3M announced plans to cut 6,000 more jobs globally in addition to the 2,500 announced in January. 

UPS Misses Q1 Expectations

UPS (UPS) shares are down 4.9% in premarket trade after missing Q1 expectations. 

Here’s how the shipping giant’s results compared to analysts’ estimates: 

• Adjusted EPS: $2.20 vs $2.21 expected
• Revenue: $22.93 billion vs $23.01 billion expected

The CEO said, “In the first quarter, deceleration in U.S. retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia. Given current macro conditions, we expect volume to remain under pressure. We will remain focused on driving productivity.”

UPS now expects 2023 sales of $97 billion, down from its previous forecast of $97 billion to $99.2 billion. 

Operating profit margin is expected to be 12,8% vs the previous outlook for 12.8% to 13.6%.

JetBlue Forecasts Profit After Q1 Earnings Beat

JetBlue (JBLU) shares are up 2.2% ahead of the open after reporting a smaller Q1 loss than expected and forecasting a profit in Q2.

Here’s how the airline’s results compared to analysts’ estimates:

• Adjusted loss per share: $0.34 vs $0.38 expected
• Revenue: $2.33 billion vs $2.32 billion expected

Expenses surged more than 22% year over year to $2.57 billion. 

JetBlue’s fuel bill jumped 34% from a year ago. 

The airline expects adjusted EPS of $0.35 to $0.45 in Q2 with revenue growth of 4.5% to 8.5%, topping analysts’ expectations. 

The CEO said, “For the second quarter, we expect strong revenue growth to continue as demand remains robust and as we see continued momentum from our commercial initiatives. We are forecasting a solidly profitable quarter, and we remain confident in our full-year earnings outlook.”