{"id":69507,"date":"2023-07-19T08:56:53","date_gmt":"2023-07-19T12:56:53","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=69507"},"modified":"2023-07-19T08:56:53","modified_gmt":"2023-07-19T12:56:53","slug":"coffee-with-greta-earnings-anticipation","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/07\/19\/coffee-with-greta-earnings-anticipation\/","title":{"rendered":"Coffee With Greta: Earnings Anticipation"},"content":{"rendered":"<p><b><a href=\"http:\/\/t3trading.com\/cwapt-dan\">Register now<\/a> for today's free pro trader Q&A on LinkedIn with options specialist Dan Darrow!<\/b><\/p>\n<p><b>DJIA Futures: <\/b><span style=\"font-weight: 400;\">+5 (+0.01%)<\/span><\/p>\n<p><b>SPX Futures: <\/b><span style=\"font-weight: 400;\">+2 (+0.1%)<\/span><\/p>\n<p><b>NASDAQ Futures: <\/b><span style=\"font-weight: 400;\">+33 (+0.2%)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Good morning friends!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Futures are slightly higher as traders await key earnings later today.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get right to it!<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Goldman Sachs Misses Profit Estimates<\/span><\/h2>\n<p><b>Goldman Sachs <\/b><span style=\"font-weight: 400;\">(GS) shares are down 1.4% ahead of the open after missing Q2 profit expectations. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Here\u2019s how the investment bank\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EPS: $3.08 vs $3.18 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $10.9 billion vs $10.84 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Profit dropped 58% year over year due to steep declines in trading and investment banking plus losses related to commercial real estate deals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CEO said, \u201cThis quarter reflects continued strategic execution of our goals. I remain fully confident that continued execution will enable us to deliver on our through-the-cycle return targets and create significant value for shareholders.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fixed income trading revenue fell 26% to $2.71 billion vs $2.78 billion expected, equities trading revenue of $2.97 billion topped the $2.42 billion estimate, and investment banking fees fell 20% to $1.43 billion vs $1.49 billion expected.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Carvana Reaches Debt Deal<\/span><\/h2>\n<p><b>Carvana <\/b><span style=\"font-weight: 400;\">(CVNA) shares are surging 40.1% in premarket trade after announcing a debt restructuring deal.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The used car retailer <\/span><a href=\"https:\/\/investors.carvana.com\/news-releases\/2023\/07-19-2023-113111747\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> the agreement will reduce its total debt outstanding by more than $1.2 billion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Carvana said the deal will eliminate over 83% of its 2025 and 2027 unsecured note maturities and lower its required cash interest expense by more than $430 million per year for the next two years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CFO said, \u201cThis transaction significantly increases our financial flexibility by reducing our total debt, extending maturities, and lowering near-term cash interest expense as we continue to execute our plan of driving significant profitability and returning to growth.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company also announced plans to sell up to $1 billion in shares to raise capital.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Carvana reported its second-quarter results alongside the debt announcement.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a look at those numbers vs analysts\u2019 expectations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loss per share: $0.55 vs $1.15 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue $2.97 billion vs $2.59 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Carvana\u2019s gross profit per unit jumped 94% year over year to $6,520.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CEO said, \u201cOur strong execution has made the business fundamentally better, and combined with today\u2019s agreement with noteholders that reduces our cash interest expense and total debt outstanding, gives us great confidence that we are on the right path to complete our three-step plan and return to growth.\u201d<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Housing Starts, Building Permits Drop<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">New home construction slowed more than expected in June.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Census Bureau reported housing starts tumbled 8% last month to a seasonally adjusted annual rate of 1.43 million units vs 1.48 million expected.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Single-family starts fell 7% while multi-family starts tumbled 11.6%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The number of new permits issued was also weaker than expected.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Building permits fell 3.7% in June to a seasonally adjusted annual rate of 1.44 million units vs 1.48 million expected.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Single-family permits rose 2.2% while multi-family permits dropped 13.5%.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Mortgage Demand Jumps<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Mortgage demand rose last week as lower rates boosted refinance activity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Mortgage Bankers Association reported total application volume rose 1.1% last week.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That increase was driven by refinance applications which jumped 7% weekly and were down 32% year over year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Purchase applications fell 1% weekly and were down 21% annually.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The refinance share of applications rose to 28.4% vs 26.8% the previous week.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">In Case You Missed It<\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Microsoft <\/b><span style=\"font-weight: 400;\">(MSFT) shares hit an all-time high Tuesday after the company announced pricing for its new AI subscription service. The stock hit a high of $366.78 and settled at a new closing high of $359.49 at the end of the day. The new Copilot subscription service adds AI to Microsoft\u2019s Office products like Word, Excel, and Teams. The subscription will cost an additional $30 per month for Office subscribers.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Register now for today&#8217;s free pro trader Q&#038;A on LinkedIn with options specialist Dan Darrow! DJIA Futures: +5 (+0.01%) SPX Futures: +2 (+0.1%) NASDAQ Futures: +33 (+0.2%) Good morning friends! Futures are slightly higher as traders await key earnings later today. Let\u2019s get right to it! Goldman Sachs Misses Profit Estimates Goldman Sachs (GS) shares are down 1.4% ahead of the open after missing Q2 profit expectations. Here\u2019s how the investment bank\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $3.08 vs $3.18 expected Revenue: $10.9 billion vs $10.84 billion expected Profit dropped 58% year over year due to steep declines in trading and investment banking plus losses related to commercial real estate deals.\u00a0 The CEO said, \u201cThis quarter reflects continued strategic execution of our goals. I remain fully confident that continued execution will enable us to deliver on our through-the-cycle return targets and create significant value for shareholders.\u201d Fixed income trading revenue fell 26% to $2.71 billion vs $2.78 billion expected, equities trading revenue of $2.97 billion topped the $2.42 billion estimate, and investment banking fees fell 20% to $1.43 billion vs $1.49 billion expected. Carvana Reaches Debt Deal Carvana (CVNA) shares are surging 40.1% in premarket trade after announcing a debt restructuring deal.\u00a0 The used car retailer said the agreement will reduce its total debt outstanding by more than $1.2 billion.\u00a0 Carvana said the deal will eliminate over 83% of its 2025 and 2027 unsecured note maturities and lower its required cash interest expense by more than $430 million per year for the next two years. The CFO said, \u201cThis transaction significantly increases our financial flexibility by reducing our total debt, extending maturities, and lowering near-term cash interest expense as we continue to execute our plan of driving significant profitability and returning to growth.\u201d The company also announced plans to sell up to $1 billion in shares to raise capital. Carvana reported its second-quarter results alongside the debt announcement.\u00a0 Here\u2019s a look at those numbers vs analysts\u2019 expectations: Loss per share: $0.55 vs $1.15 expected Revenue $2.97 billion vs $2.59 billion expected Carvana\u2019s gross profit per unit jumped 94% year over year to $6,520.\u00a0 The CEO said, \u201cOur strong execution has made the business fundamentally better, and combined with today\u2019s agreement with noteholders that reduces our cash interest expense and total debt outstanding, gives us great confidence that we are on the right path to complete our three-step plan and return to growth.\u201d Housing Starts, Building Permits Drop New home construction slowed more than expected in June.\u00a0 The Census Bureau reported housing starts tumbled 8% last month to a seasonally adjusted annual rate of 1.43 million units vs 1.48 million expected.\u00a0 Single-family starts fell 7% while multi-family starts tumbled 11.6%.\u00a0 The number of new permits issued was also weaker than expected.\u00a0 Building permits fell 3.7% in June to a seasonally adjusted annual rate of 1.44 million units vs 1.48 million expected.\u00a0 Single-family permits rose 2.2% while multi-family permits dropped 13.5%.\u00a0 Mortgage Demand Jumps Mortgage demand rose last week as lower rates boosted refinance activity.\u00a0 The Mortgage Bankers Association reported total application volume rose 1.1% last week. That increase was driven by refinance applications which jumped 7% weekly and were down 32% year over year.\u00a0 Purchase applications fell 1% weekly and were down 21% annually. The refinance share of applications rose to 28.4% vs 26.8% the previous week. In Case You Missed It Microsoft (MSFT) shares hit an all-time high Tuesday after the company announced pricing for its new AI subscription service. The stock hit a high of $366.78 and settled at a new closing high of $359.49 at the end of the day. The new Copilot subscription service adds AI to Microsoft\u2019s Office products like Word, Excel, and Teams. The subscription will cost an additional $30 per month for Office subscribers.<\/p>\n","protected":false},"author":41,"featured_media":69508,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-69507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=69507"}],"version-history":[{"count":1,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69507\/revisions"}],"predecessor-version":[{"id":69510,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69507\/revisions\/69510"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/69508"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=69507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=69507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=69507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}