Financial heavyweights, including Bank of America (NYSE:BAC), JPMorgan Chase & Co (NYSE:JPM), and Goldman Sachs (NYSE:GS), reported their financial results this week, officially marking the start of the third-quarter earnings season.
The Financial Select Sector SPDR Fund ETF (XLF) was down nearly 2% in the week. In the third quarter, however, it has risen by 2.30%, lagging behind the broader S&P500 index, which advanced nearly 8%.
Earnings Recap
Out of the 25 companies that reported their earnings this week, 22 topped analysts’ estimates while three lagged behind. A similar trend was seen on the revenue side.
Bank of America (NYSE:BAC) beat analysts’ consensus by a wide margin after every line of business demonstrated top and bottom-line improvement. The company lifted the lower end of its Q4 net interest income (NII) guidance to $1.56 billion-$1.57 billion.
Meanwhile, JPMorgan (NYSE:JPM) and Citigroup (NYSE:C) lifted their annual NII guidance following better-than-expected Q3 results. JPM’s annual NII is expected to come in around ~$92.2B, while that for Citi is seen advancing ~5.5%.
Goldman Sachs (NYSE:GS) saw earnings, revenue, and net interest income exceeding estimates on the back of increased investment banking activity and growth in its assets and wealth management unit. However, the stock dropped after reporting higher-than-expected Q3 expenses.
Huntington Bancshares Incorporated (NASDAQ:HBAN) and The Progressive (NYSE:PGR) were the only companies reporting this week that missed estimates for both top and bottom lines.
At the industry level, 17 banks, two capital markets, two consumer finance companies and three insurance companies reported earnings this week.
With 34% of the companies already having reported their earnings this week, the coming week will feature results from Blackstone (NYSE:BX), Capital One Financial (NYSE:COF) and Nasdaq (NASDAQ:NDAQ) reporting their results.