Delta Air Lines, Inc., Wells Fargo Company Beat EPS Estimates

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Delta Air Lines and Wells Fargo released their latest earnings reports before opening bell this morning. Delta beat consensus on adjusted earnings, coming in at $1.32 per share against consensus at $1.29. It came up short on revenues, however, with $9.25 billion in sales against the consensus of $9.27 billion. In last year’s first quarter, revenue came in at $9.39 billion.

Wells Fargo posted earnings of 99 cents per share, beating consensus by 2 cents, and revenue of $22.2 billion which also beat the consensus at $21.54 billion.

Currencies weigh on Delta Air Lines’ passenger results

Delta Air Lines’ reported earnings rose from 90 cents per share last year to $1.21 per share in this year’s first quarter. Currency headwinds and a $5 million impact relating to the Brussels terror attack drove pressure on operating revenue during the first quarter as passenger revenues fell 4.6% to $7.8 billion. Mainline revenue climbed to $4.2 billion, while regional revenue fell to $1.3 billion. Cargo revenue fell to $162 million, while other revenue climbed to $1.3 billion.

Delta Air Lines management guided for passenger revenue against flight capacity to fall by between 2.5% and 4.5% for the first quarter, compared to the first quarter’s 4.6% decline. They expect system capacity to climb by 2% to 3% in the second quarter.

Delta Air Lines shares rose 2.23% to $49.15 in premarket trading.

Wells Fargo misses on net interest income

Wells Fargo reported net interest income of $11.7 billion, a $79 million increase that came up a bit short of the consensus at $11.76 billion. Return on assets was 1.21%, while return on equity was 11.75%. The bank added $30.8 billion in loans and leases from its GE Capital acquisitions and recorded a 7% increase in total average loans, which brought them to $927.2 billion. Total average deposits climbed 4% year over year to $1.2 trillion. Wells Fargo added $200 million to its reserves with its oil and gas portfolio weighing on its reserves.

The Community Banking segment saw revenues climb from $12.1 billion in the year-ago quarter to $12.6 billion in this year’s first quarter, while the Wholesale Banking division saw revenues edge lower from $2 billion to $1.9 billion. The Wealth and Investment Management division’s revenue slid from $529 million last year to $512 million this year.

Wells Fargo shares dipped 0.45% to $48.83 in premarket trades this morning.

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