Sterling Bancorp Q2 Adj. Profit Declines
Sterling Bancorp (STL) reported second quarter adjusted earnings per share of $0.29 compared to $0.51, prior year. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.30, for the quarter. Analysts’ estimates typically exclude special items.
Second quarter net interest income was $213.3 million, a decrease of $18.5 million from previous year. Non-interest income was $26.1 million and was impacted by decreases in gain on securities, securities call income, deposit service charges and commercial loan fee income due to lower transaction volumes.
For the quarter ended June 30, 2020, provision for credit losses was $56.6 million, or $39.0 million greater than net-charge offs. As of June 30, 2020, allowance for credit losses was $365.5 million, or 1.64% of total loans.
Sterling Bancorp also announced that the Board has declared a quarterly cash dividend of $0.07 per share. The dividend is payable August 17, 2020 to holders of record as of August 3, 2020.
European Economics Preview: ECB Monetary Policy Announcement Due
The interest rate announcement from the European Central Bank is due on Thursday, headlining a light day for the European economic news.
The ECB is expected to leave its key interest rate, which is the rate on the main refinancing operations, at a record low zero percent. No new measures are expected at the meeting. The announcement is due at 7.45 am ET.
ECB President Christine Lagarde is set to hold customary press conference at 8.30 am ET.
At 2.00 am ET, the Office for National Statistics is slated to issue UK labor market statistics. The jobless rate is forecast to rise to 4.2 percent in three months to May from 3.9 percent in three months to April.
In the meantime, the European Automobile Manufacturers’ Association publishes Europe’s new car registrations data for June.
At 2.45 am ET, France’s statistical office Insee is scheduled to issue final consumer prices for June. According to preliminary estimate, inflation eased to 0.1 percent, which was the lowest since May 2016.
At 4.00 am ET, Italy’s foreign trade data for May is due. The trade deficit totaled EUR 1.15 billion in April.
In the meantime, Bank of England’s credit conditions survey data is due.
At 5.00 am ET, Eurostat releases euro area foreign trade data for May. The trade surplus totaled EUR 2.9 billion in April.
Asian Junk-Rated Corporates Get Downgraded at Record Pace
The coronavirus pandemic is causing unprecedented rating downgrades of non-financial Asian high-yield companies, according toMoody’s Investors Service. Moody’s lowered credit ratings on 41 junk-grade firms in the first half, while raising credit scores for just three, with a record 22 downgrades and no upgrades in the second quarter alone. The rater warned that the impact from the pandemic may push defaults higher in the region as refinancing remains difficult for non-investment grade companies, which are facing $53 billion of bond redemptions by the end of 2020.
Swiss Re Posts H1 Net Loss On COVID-19 Claims And Reserves
Swiss Re Ltd. (SSREY.PK) reported net income, excluding COVID-19 claims and reserves, of approximately $0.9 billion in the first half of 2020. Claims and reserves related to COVID-19 was $2.5 billion, resulting in a net loss of approximately $1.1 billion in the first half of 2020. The full first-half results will be published on 31 July 2020.
Swiss Re also reported the completion of the sale of its subsidiary ReAssure Group plc to Phoenix. The company received 1.2 billion pounds and 13.3% stake in Phoenix Group Holdings plc as part of the sale.
Swiss Re’s CFO John Dacey said: “Our capital position remains industry-leading. we expect the claims and reserves we have booked the first half of 2020 to cover the majority of our ultimate COVID-19 losses.”
Tesla Motors Q2 Profit Trounces Street; Shares Up 7%
Shares of Tesla Motors Inc. (TSLA) jumped 7% in extended trading session on Wednesday after the luxury electric car maker reported a profit for the second quarter, while analysts expected the company to post a loss.
Palo Alto, California-based Tesla reported second-quarter profit of $104 million or $0.50 per share, compared to last year’s loss of $408 million or $2.31 per share.
Excluding items, adjusted earnings for the quarter were $2.18 per share, compared to a loss of $1.12 per share last year. On average, 16 analysts polled by Thomson Reuters expected loss of $0.11 per share for the quarter.
Tesla’s revenues for the quarter dropped 5% to $6.04 billion from $6.35 billion last year. Analysts had a consensus revenue estimate of $5.23 billion.
In the quarter, Tesla said it delivered 75,946 Model 3s/Y to customers, up 5% from last year and down 13% from previous quarter. Model S/X deliveries were 6,326 down 56% from last year and 59% from previous quarter.
Looking forward, Tesla said, “We have the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions. While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target.”
TSLA closed Wednesday’s trading at $1,592.33, up $23.97 or 1.53%, on the Nasdaq. The stock further gained $113.67 or 7.14% in the after-hours trade.
Helix Energy Solutions Earnings Decline In Q2
Helix Energy Solutions (HLX) announced a profit for second quarter that dropped from last year.
The company’s bottom line totaled $5.45 million, or $0.04 per share. This compares with $16.85 million, or $0.11 per share, in last year’s second quarter.
Analysts had expected the company to earn -$0.01 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
The company’s revenue for the quarter fell 1.3% to $199.15 million from $201.73 million last year.
Helix Energy Solutions earnings at a glance:
-Earnings (Q2): $5.45 Mln. vs. $16.85 Mln. last year.
-EPS (Q2): $0.04 vs. $0.11 last year.
-Analysts Estimate: -$0.01
-Revenue (Q2): $199.15 Mln vs. $201.73 Mln last year.