United Passenger Traffic Doubles to 29.3 Million, Estimates Return to Profitability

United Airlines said first quarter 2022 revenues increased 134% to $7.57 billion, net loss was nearly flat at $1.57 billion, and diluted loss per decreased to $4.24 from $4.29 a year ago. 

         First quarter revenues are still 21% lower than the two-year ago period prior to pandemic. Airline at the end of the quarter had $20 billion and net debt declined by $700 million. Passenger load factor jumped to 72.6% from 56.8% a year ago but still below 80.9% in the first quarter in 2019.

After Hours: Tesla Deliveries Jump, United Passenger Traffic Doubles

Tesla jumped 5% after the automaker reported a sharp rise in revenues, vehicle deliveries, earnings and fall in net debt. The automaker also said available electric vehicles declined to three days of supply from four a year ago. United Airlines jumped 4% after the company reported first quarter revenues of $7.57 billion, 21% decline from two-year ago but estimated profitability in the second quarter.

Tesla Net Revenues Up 81%, Vehicle Production Jumps 69%

Tesla, Inc said first quarter 2022 revenues shot up 81% to $18.8 billion, net income jumped 658% to $3.3 billion, and diluted earnings per share jumped to $2.86 from 39 cents a year ago. Cash and equivalents at the end of the quarter increased to $18 billion and net declined to $0.1 billion. Total vehicle production increased to 305,407 units from 180,338 a year ago.

Netflix Drags Nasdaq and Streamers Lower, IBM Offers Positive Outlook

U.S. stock indexes gained after investors digested a flood of earnings from banks and tech companies. 

Netflix plunged 35% on the rising loss of subscribers and dragged internet stocks including Match.com, Wayfair, Etsy, Shopify. Disney, Paramount, CBS, and Discovery stocks also closed lower. P&G and IBM offered a positive view for the rest of the year. 

Banks including Truist and M&T gained on a positive earnings outlook but Fifth Third Bancorp earnings fell short of expectations. 

Crude oil futures closed unchanged and 10-year U.S. Treasury bond yield inched lower to 2.85%.

New Record Home Price in March, Sales and Inventories Fall

Existing home sales declined in March to a seasonally adjusted annual rate of 5.77 million, a decline of 2.7% from the previous month and 4.5% from a year ago. 

Home sales declined for the second month in a row and median existing home sale price increased 15% from a year ago to $375,300 and 87% of homes sold in March were on the market less than a month, according to the data released by the National Association of Realtors. 

Single-family existing home sales declined 3.8% from a year ago and the median home price increased 15.2% to $382,000.

Mueller Industries Net Jumps, Reaffirms Annual Growth Outlook

Mueller Industries said first quarter 2022 revenues increased 25% to $1.01 billion, net income surged 150% to $158 million, and diluted earnings per share increased to $2.78 from $1.11 a year ago. The copper alloy and aluminum products maker said the revenues increase was driven by higher commodities prices and volume growth from recently acquired businesses.

M&T Bank Net Falls 19%, Credit Loss Allowance Ratio Held at 1.6%

M&T Bank said first quarter 2022 net interest income declined 8% to $904 million, net income fell 19% to $362 million, and earnings per share fell to $2.62 from $3.33 a year ago. The bank also completed the acquisition of People's United for $8.4 billion on April 1. Loan loss provision in the quarter was $10 million compared to $25 million a year ago and non-performing loans increased to $2.13 billion from $1.96 billion a year ago.

Afternoon Movers: Avis Budget Group, Baker Hughes, IBM, M&T Bank, Mueller Industries

IBM gained 8% after the company reported quarterly revenues gained 7.7% from a year ago and estimated higher annual revenues in mid-single digit. 

Avis Budget Group soared 13% after Barclays revised its rating higher ahead of earnings in two weeks. 

Baker Hughes dropped 5% after the company reported lower than expected earnings and revenues. 

M&T Bank soared 9% after the mid-size bank reported better than expected earnings. 

Mueller Industries surged 9% after quarterly earnings more than doubled.

Movers: Halliburton, NetGear, Netflix, Plug Power, Shopify, Wayfair

Netflix plunged as much as 37% after the streaming service guided a loss of additional 2 million in the current quarter. Netflix's cautious outlook sparked widespread losses in other streaming services providers including Disney, Paramount and Discovery and in Internet-based growth stocks Shopify and Wayfair. NetGear regained some of the losses after reporting weaker than expected quarterly revenues. Halliburton reported 35 cents a share. Plug Power agreed to provide liquid green Hydrogen to power lift trucks at Walmart fulfillment centers.

Manpower Net Jumps 48% On Improved Business Mix

Manpower Group said first quarter 2022 revenues increased 4% to $5.14 billion, net income soared 48% to $91.6 million and diluted earnings per share jumped 51% to $1.68 from $1.11 a year ago. The recruitment services provider guided second quarter earnings per share range between $2.31 and $2.39 including estimated unfavorable currency impact of 19 cents and excluding integration costs between $4 million and $6 million.

Trusit Financial Net Interest Margin Falls

Truist Financial Corporation said first quarter 2022 revenues declined 2.9% to $5.4 billion, net income declined 7% to $1.32 billion, diluted earnings per share increased to 99 cents from 98 cents a year ago. Total non-performing assets edged slightly lower to $1.14 billion and total loans 30-89 past due days increased 19% to $2.1 billion. Return on average assets declined to 1.07% from 1.17% and net interest margin fell to 2.76% from 3.01%.

P&G Lifts Earnings Outlook Despite Higher Commodities and Freight Cost

The Procter & Gamble Company said fiscal year third quarter 2022 revenues increased 7% to $19.4 billion, net income rose 4% to $3.4 billion, and diluted earnings per share increased 5% to $1.37 from $1.30 a year ago. The consumer products company reported quarterly sales increased in all divisions led by 13% in Health Care, 7% each in Fabric and Home Care, and Family and Baby, Feminine, and Family Care, 3% in Grooming, and 2% in Beauty segment. In the quarter, the company returned $3.4 billion to shareholders including $2.2 billion of dividend payments and $1.2 of share repurchase.

IBM Guides Higher Annual Revenues and $10 Billion Cash Flow

IBM said first quarter 2022 revenues increased 7.6% to $14.2 billion, net income declined 12.5% to $733 million, and diluted earnings per share fell to 81 cents from $1.06 a year ago. The tech company reported broad improvement in sales led by 12% rise in software division, 13% increase in consulting services, and hybrid cloud revenues rose 14%. Infrastructure segment revenues fell 2%. The company guided 2022 revenues at the high end of the mid-single digit and free cash flow between $10 billion and $10.5 billion.

S&P 500 and Nasdaq Scale Higher on Positive Earnings

U.S. stock index futures pointed to a higher opening as investors digested a flood of earnings from major companies. Crude oil traded flat and bond yields were on the defensive in the early trading. Netflix plunged 28% after the company reported quarterly net subscribers declined for the first time in a decade and guided higher losses in the current quarter. IBM earnings were ahead of expectations and P&G guided higher sales and passed on higher costs to consumers. Tesla and United Airlines are scheduled to release earnings after the market closes.

Netflix Loses Customers, Stock Plunges 23%

Netflix said first-quarter revenues increased 9.8% to $7.8 billion, net income declined 20% to $1.59 billion, and earnings per share fell to $3.53 from $3.75 a year ago. Operating margin declined to 25.1% from 27.4% and paid streaming membership increased 6.7% to 221.64 million. In the quarter, the streaming service provider lost 0.2 million subscribers. For the second quarter, the company guided slower growth of 9.7% in revenues, nearly flat income from a year ago $1.35 billion or $3 a share and membership decline of 5% or 2 million to 219.6 million.