UBS AG Earnings: Here’s Why Shares are Up Now

UBS AG (NYSE:UBS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.97%.

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UBS AG Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 136.36% to $0.26 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Decreased 22.2% to $7.79 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: UBS AG reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0. It beat the average revenue estimate of $0.

Quoting Management: Commenting on UBS’s first-quarter results, Group CEO Sergio P. Ermotti said, “While it is too early to declare victory, we have shown our business model works in practice. Although markets improved, we still saw challenges, so I am very pleased with our performance. Our clients continued to benefit from the safety, service and sound advice that we provide, and our Basel III CET1 capital ratio rose to 10.1%. We have surpassed the capital ratio threshold for systemically relevant Swiss banks six years early, and our leading capital position continues to be a competitive advantage for the bank.”

Key Stats (on next page)…

Revenue decreased 21.21% from $9.89 billion in the previous quarter. EPS decreased 27.78% from $0.36 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.35 to a loss $0. For the current year, the average estimate has moved up from a loss of $0.69 to a loss of $0 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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