Earnings season officially opened – with a powerful start against estimates
This week we got a first glimpse into the strength of American banks and some of the world's largest companies.
Here is a concise summary of the key data from the last two days:
J.P. Morgan ($JPM) – Earnings per share: $5.07 (above estimate of $4.84). – Revenue: $47.1 billion (above estimate of $45.6 billion).
Continued growth trend in interest income – the bank's main growth engine.
Johnson & Johnson ($JNJ) – Earnings per share: $2.80 (above $2.76) – Revenue: $24 billion (above $23.8 billion).
The company announced the spin-off of its orthopedics division (DePuy Synthes) into an independent unit within 18–24 months — a move that could unlock significant shareholder value.
- Goldman Sachs ($GS)
- Earnings per share: $12.25 (above $11.00).
- Revenue: $15.2 billion (above $14.2 billion).
A strong comeback in the investment banking division and increased market activity reinforce the feeling that the bank is returning to peak performance.
- BlackRock ($BLK)
- Earnings per share: $11.55 (above $11.25)
- Revenue: $6.5 billion (above $6.2 billion).
- Assets under management (AUM): $13.5 trillion
Growing demand for ETFs and passive products continues to attract assets at an impressive rate.
- Wells Fargo ($WFC)
- Earnings per share: $1.66 (above $1.54).
- Revenue: $21.4 billion (above $21.2 billion).
Improved credit quality and continued balance sheet strengthening.
- Citi ($C)
- Earnings per share: $2.24 (above $1.78).
- Revenue: $22.1 billion (above $21.1 billion).
The bank's reorganization efforts are beginning to bear fruit, with improved profitability and strengthening in the trading and credit segments.
- Domino's Pizza ($DPZ)
- Earnings per share: $4.08 (above $3.97).
- Revenue: $1.00 billion (below estimate of $1.10 billion).
Despite the slight revenue miss, the bottom line continues to impress due to tight cost control and strengthening of the delivery system.
The start of earnings season is very strong.
Almost all companies beat estimates — mainly due to improved financial margins, resilient demand, and structural efficiency.
The market has so far received a tailwind of optimism for the rest of the season.