Titres en action: Delta, Wells Fargo, BlackRock, Bank of America, Velan

Here is a selection of announcements that have made (or will make) move the prices of these companies:

(Come back and read us from time to time
so as not to miss an update)

American airline Delta Airlines (DAL, US $ 41.31) on Wednesday unveiled better-than-expected second-quarter results, even posting its first quarterly net profit since the start of the pandemic, and was optimistic about the gradual recovery in air traffic. Leisure travel in the United States “has returned to its 2019 levels and there are encouraging signs of improvement in international and business travel,” commented its CEO Ed Bastian, quoted in a earnings release from the business. Revenues from domestic flights show a more modest decline compared to 2019 than those from abroad. From April to June, the group’s turnover was displayed above analysts’ expectations, at $ 7.1 billion against 6.2 billion expected by analysts. Over the quarter, the group’s net profit stood at $ 652 million, against $ 1.44 billion in the second quarter of 2019, the first profit since the last three months of 2019. Reported per share and excluding exceptional items, the group deplores a loss of $ 1.07, less than analysts’ expectations predicting $ 1.4. The airline also claims to have generated positive cash flow for the entire quarter, where previously it was burning cash in the face of the collapse in passenger traffic amid COVID-19. Delta lost $ 12.4 billion last year, the “hardest year in history” according to the company.

The American Bank Wells Fargo (WFC, US $ 43.59) significantly exceeded expectations in the second quarter, returning to the green thanks in particular to the drop in amounts set aside at the start of the pandemic. The group posted a net profit of 6 billion dollars over the period, whereas it had lost 3.8 billion a year earlier, when the large financial institutions set aside billions to face the possible delinquencies of their customers. . Reported on a per share basis and excluding exceptional items, profit is at 1.38 dollars where analysts were expecting 97 cents. Wells Fargo has reduced its reserves by $ 1.6 billion “due to continued improvements in the economic environment.” Wells Fargo’s revenue rose 11% to $ 20.27 billion, well above the $ 17.75 billion expected by analysts. As with the other large American banks, income from brokerage activities on the markets, on the other hand, fell sharply. Wells Fargo stock was up 0.94% when the New York Stock Exchange opened.

BlackRock (BLK, US $ 908.07), the world’s leading asset manager, on Wednesday announced a 30% increase in its assets under management in the second quarter year on year, to a record high of $ 9.496 billion, as well only results exceeding expectations. The amount of these assets under management is higher than expected by analysts at Factset, at 9.454 billion dollars. The group had passed the $ 9 trillion threshold for the first time in the previous quarter. BlackRock invests in the financial markets the money entrusted to it by pension funds, large fortunes, sovereign funds or even local authorities, for a fee. Quarterly revenue was $ 4.8 billion, up 32% year on year and higher than analysts’ expectations. Income from investment advice and commissions accounted for $ 3.62 billion of this total. Over the first six months of the year, Blackrock’s turnover is up 25% and net profit is up 28%. Earnings per share amounted to $ 10.03 in the second quarter, against an average analyst expectation of $ 9.36. On the stock market, the title Blackrock fell despite everything by 2.1% in transactions preceding the opening of Wall Street.

Bank of America (BAC, US $ 39.86) more than doubled its profit in the second quarter thanks in particular to the reduction of reserves set aside at the start of the pandemic, but saw its sales decline due to the drop in interest rates. ‘interest. The bank had increased its reserves by 4 billion in the second quarter of 2020 to be able to cope with possible defaults from its customers. In view of “improving the economic environment” as the economy recovers, she decided to reduce them by $ 2.2 billion. Personal customer debit and credit card spending increased 16% from the prior quarter. Bank of America’s net income jumped 173% to $ 9 billion. Reported per share and excluding special items, profit was $ 1.03, more than the 77 cents expected by analysts. The stock was down 1.76% in electronic trading before the New York Stock Exchange opened.

Velan (VLN, $ 9.90) on Tuesday unveiled a larger first-quarter loss than the same period last year, which the industrial valve maker attributed to higher administration costs and other non-recurring items. The Montreal-based company posted a loss of US $ 5.1 million, or US 24 cents per share, for the quarter ended May 31, which compared to a loss of US $ 1.9 million, or US 9 cents per share. share, for the same period last year. Velan’s revenue was US $ 74.5 million in the most recent quarter, down 2.8% from revenue of US $ 76.7 million in the first quarter of 2020. Despite this deterioration in its results, the company said it was encouraged by the improvement in the margins of its global activities and by the strengthening of its order book. The latter’s value reached US $ 607.2 million at the end of the quarter, its highest level since August 2012. Velan had decided, at the end of its fiscal year 2020, to suspend its dividend and indicated on Tuesday that his decision remained unchanged. However, it will be reassessed on a quarterly basis.


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