BAC, C and GE all Beat Earnings, Revenues are Slowing
This morning, three bellwether blue chip heavyweight companies reported second quarter earnings that left investors mixed pre-market. Bank of America (NYSE:BAC), Citigroup (NYSE:C) and General Electric (NYSE:GE) all surpassed reduced analyst earnings estimates for the second quarter, but with lower top-line revenue figures.
Bank of America (NYSE:BAC) earned $.27 cents per share, compared to the consensus analyst expectation of $.22 cents per share, beating estimates by $.05 per share. However, for the 6 months ended June 30th, total revenue was down over 10%. BAC stated second quarter revenue was $29.2 Billion versus the expected $29.6 Billion by analysts, or a miss of $400 million.
CEO Brian Moynihan said Bank of America’s “credit quality improved even faster than we expected.”
A positive note to keep in mind despite the BAC revenue slowdown is Bank of America was one of the largest recipients of government bailout money, however BAC repaid the entire $45 billion investment issued by the Troubled Asset Relief Program (TARP) in December 2009.
BAC is currently trading at $14.39 per share:
Citigroup (NYSE:C) delivered $.09 cents per share, compared to the consensus analyst expectation of $.05 cents per share, beating estimates by $.04 per share. Revenue for Citigroup was $22.1 Billion, worse than the expected $22.4 Billion, a miss of $300 million.
CEO Vikram Pandit said, “”While the market environment lowered revenues in securities and banking, credit improved for the fourth consecutive quarter.”
C is currently trading at $4.02 per share:
General Electric (NYSE: GE) reported second quarter earnings of $.30 cents per share, beating consensus analyst estimates by $.03 cent per share. Additionally, GE beat revenue expectations by $140 million delivering $37.44 Billion for the second quarter. Although, revenue slowed 4.3% year-over-year — a sign of slowdown for conglomerate.
CEO of Genereal Electric Jeff Immelt said the “higher income and lower losses at GE Capital were particularly encouraging,” adding “GE’s economic environment continues to improve,” He said he plans to “grow earnings and dividends in 2011 and beyond”.
GE is currently trading at $14.71 per share:
Disclosure: Author has no position in the companies mentioned.