Earnings Season Talking Points:
- Proctor and Gamble optimistically raises growth forecasts for fiscal 2022.
- Bank of America’s overall performance strengthened by the investment banking division.
- UnitedHealth Group tops both earnings and revenues forecasted.
Corporate earnings continue to push through the recent pressures of inflation, challenging operating environments and disrupted supply chain issues from the Covid-19 Omicron variant. Companies will have to manage expectations for growth in 2022 with demand from higher wages and a slowdown in consumer spending emanating from higher interest rates.
Proctor and Gamble (PG)
demonstrated that their price hikes offset higher commodity and freight costs. PG came in at $1.66 earnings vs $1.65 expected and revenues topped at $20.95 billion bs $20.34 billion. With the positive outlook, the company decided to raise their sales growth outlook but still expects inflation to weigh in heavily on results for fiscal 2022.
Proctor and Gamble Price Chart
Created by Kaithleen Pesantez
Bank of America (BAC)
faced a challenging interest rate environment but growth in loans and deposits helped to boost their net interest income; and profits for asset management and investment banking fees increased, leading to revenues recorded at $22.17 billion vs $22.2 billion estimated. But earnings topped expectations as BofA released $851 million in reserves, bringing earnings to $0.82 vs $0.76 estimated.
Bank of America Price Chart
Created by Kaithleen Pesantez
UnitedHealth Group (UNH)
topped earnings with $4.48 vs $4.31 expected which is 78% increase from last year and gave a strong performance in 2021, solidifying their confidence for growth in 2022. Revenues also hit $73.7 billion vs $73.1 billion, increasing by 12.6% from last year. Higher Premiums drove revenue and 2.2 million members were added while showing little sign of serious impact from costs tied to Covid-19 cases over this past month.
UnitedHealth Group Price Chart
Created by Kaithleen Pesantez
--- Written by Kaithleen Pesantez, Market Strategist for DailyFX.com
Contact and follow Kaithleen on Twitter: @ktpesantez
