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HSBC Stock Rises in Week 2 of Earnings Season

The final week of July saw a flurry of financial information, including earnings reports, Federal Reserve statements, and congressional spending agreements.

As politicians and investors retreat for the summer, the effects of the last week and the first seven days of August will be felt for the next few weeks in the empty halls of Wall Street and Washington, DC. 

HSBC Holdings plc

In comparison to the same period last year, HSBC Holdings plc’s (HSBA.L, HSBC) second-quarter profit after tax was $5.8 billion, including a $1.8 billion deferred tax gain.

At $5.0 billion, profit before taxes remained constant.

The reported revenue increased by $0.2 billion to $12.8 billion despite the negative effects of currency exchange rate fluctuations.

All global businesses saw an increase in net interest income, primarily as a result of higher interest rates. Additional factors contributing to revenue growth included GBM’s strong performance in global foreign exchange and WPB’s higher sales in life insurance manufacturing.

The Board has also approved an interim dividend of $0.09 per common share for the first half, to be paid in cash.

For 2023 and 2024, the company anticipates a dividend payout ratio of about 50%.

The revenue outlook is still promising in the future. Despite the uncertain macroeconomic environment, the revenue outlook has improved further since the results for the full year of 2021.

The company anticipates net interest income of at least $31 billion for 2022 and at least $37 billion for 2023 based on the current market consensus for global central bank rates and continued mid-single-digit percentage lending growth expectations for 2022. 

Mitsubishi UFJ Financial Group Inc

The Board has also approved an interim dividend of $0.09 per common share for the first half, to be paid in cash.

For 2023 and 2024, the company anticipates a dividend payout ratio of about 50%.

The revenue outlook is still promising for the future. Despite the uncertain macroeconomic environment, the revenue outlook has improved further since the results for the full year of 2021.

The company anticipates net interest income of at least $31 billion for 2022 and at least $37 billion for 2023 based on the current market consensus for global central bank rates and continued mid-single-digit percentage lending growth expectations for 2022.

The company is valued at $71.52 billion and has a price-to-earnings ratio of 7.18, an earnings growth price-to-price ratio of 0.59, and a beta of 0.72. The 52-week low and high for Mitsubishi UFJ Financial Group are $5.09 and $6.78, respectively. The company’s quick, current, and debt-to-equity ratios are all 0.94. The company’s 50-day and 200-day moving averages are $5.50 and $5.90, respectively.

 Electronic Arts Inc. 

Investors in Electronic Arts (NASDAQ: EA) may be in for a choppy trading week. In a few days, the video game developer will report the results of its first quarter of fiscal 2023, which ended on June 30. Additionally, even though its most recent reports indicated strong trends in sales and profits, this update may be different.

As consumers shift their demand away from digital content, Wall Street is concerned about an impending growth hangover. But that’s only one of the major worries going into the report on Tuesday afternoon.

In a research note published on Thursday, stock analysts raised their estimates for Electronic Arts’s Q3 2024 earnings per share. In comparison to their previous forecast of $2.43, they now expect the game software company to earn $2.45 per share for the quarter.

The current $5.49 per share consensus estimate for Electronic Arts’ full-year earnings. Analysts predicted $0.96 EPS for Electronic Arts’ fourth quarter of 2024.

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  • Zahari Rangelov

    Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007. Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as; Psychology of market participants’ moods, Investments & speculation with different financial instruments and Automated Expert Advisors & signal providers. Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.