Earnings live: General Motors and GE raise guidance, Coca-Cola stock rises on earnings beat – atlantisthemes

Shares of Philip Morris (PM) fell as much as 8% after the tobacco giant reported third quarter earnings.

Growth in the company’s smokeless segment offset expected declines in cigarette sales.

Cigarette shipments fell 3.2% in the third quarter, while shipments of smoke-free products, which include Zyn nicotine pouches, vapes, and heated tobacco products, increased 16.6%. Philip Morris’s smoke-free products, which make up about 42% of the company’s revenue, also became more profitable, the company said.

“Our global smoke-free portfolio is outgrowing the industry by a clear margin, driving positive total volumes, strong top-line growth and impressive margin expansion,” CEO Jacek Olczak said in the release.

Overall, Philip Morris reported earnings per share of $2.23, above consensus estimates of $1.98 per share, according to S&P Global Market Intelligence. The company also raised the lower end of its full-year earnings per share guidance by $0.03 to $7.46-$7.56, which assumes 13.5% to 15.1% earnings growth.

Industrial conglomerate 3M (MMM) raised its annual earnings outlook after revenue slightly beat estimates. 3M’s stock rose less than 1% ahead of the opening bell.

Sales rose to $6.3 billion, compared to Wall Street estimates of $6.2 billion, according to S&P Global Market Intelligence. Adjusted earnings per share of $2.19 increased 10% year over year and topped estimates of $2.07.

The company noted strong demand in electronics, industrial adhesives, and tapes, as well as advanced materials, aerospace, and defense. However, its auto aftermarket segment was challenged.

3M’s consumer segment, which produces items like Post-It notes, was also soft, and the company said that consumer discretionary spending remains subdued.

3M raised its full-year profit guidance to $7.95-$8.05 from $7.75-$8.

Halliburton (HAL) grew its total revenue in the third quarter, even as oil prices fell on oversupply concerns. Its shares rose over 5% in premarket trading.

Impairment charges weighed on overall earnings, but adjusted for those one-time charges, earnings of $0.58 per share topped Wall Street estimates for earnings of $0.50.

Overall revenue slipped to $5.6 billion from $5.69 billion a year ago. Though revenue still beat estimates of $5.38 billion, according to S&P Global Market Intelligence.

“I am pleased with Halliburton’s third quarter performance,” commented Jeff Miller, Chairman, President and CEO. “We are committed to returning cash to shareholders, maintaining cost and capital discipline, and investing in differentiated technologies that drive long-term performance.”

On Monday night, shortly before Tuesday’s earnings report, Halliburton and energy technology developer VoltaGrid announced a partnership that will see Halliburton supply power generation equipment for VoltaGrid’s data center customers.

The collaboration is expected to see an initial roll-out in the Middle East.

“The demand for power and for AI is like nothing I’ve ever seen in terms of demand growth and that we’ve watched that, and we also know that not only in the U.S. but around the world, the rest of the world is a really big opportunity set for the same level of growth,” Miller said.

“From a Halliburton perspective, we’ve got boots on the ground in 70 countries. We’ve got excellent execution skills, a proven manufacturing, and we also have global scale, industrial global scale, which I think is critical.”

GE Aerospace (GE) stock rose over 2.5% after the jet engine maker reported a big profit beat and raised its full-year guidance.

Adjusted revenue grew 26% over the previous year to $11.3 billion, powering adjusted earnings per share of $1.66, well above Wall Street estimates for earnings per share of $1.47, according to S&P Global Market Intelligence.

For the full year, GE Aerospace raised its EPS forecast to $6.00-$6.20 per share from $5.60-$5.80 previously.

The company’s commercial engines and services business was a major driver during the quarter, with orders up 32% and revenue up 28%. The company now sees revenue in the segment growing in the mid-20s range for the year, up from prior guidance of revenue in the high teens.

“GE Aerospace delivered an exceptional quarter with revenue up 26%, EPS up 44%, and more than 130% free cash flow conversion,” GE’s CEO Larry Culp said in a statement. “Given the strength of our year-to-date results and our expectations for the fourth quarter, we’re raising our full-year guidance across the board.”

Aerospace and defense company Northrop Grumman (NOC) raised its 2025 profit forecast for the second straight quarter on Tuesday, as conflicts in the Middle-East and the Russian-Ukraine war prompted a surge in demand for its missiles and fighter jets.

Reuters reports:

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Elevance (ELV) stock rose 6% before the bell on Tuesday after the healthcare company beat Wall Street estimates for its third-quarter earnings report.

Reuters reports:

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Shares of Zions Bancorporation (ZION) rose 3% in after-hours trading after the bank suggested that a large loss during the quarter was limited to a couple of faulty loans and not a sign of widespread credit stress.

Zions stock dropped 13% in one day last Thursday after the regional bank disclosed it filed a lawsuit to recoup $60 million from investment funds Cantor II and Cantor IV. At the same time, another regional bank, Western Alliance (WAL), sued another Cantor fund for alleged fraud. However, commentary from several regional lenders in recent days has largely calmed the market’s jitters about credit quality.

“The quarter’s credit results were marred by a $50 million charge-off, and a $10 million specific reserve established against the approximate remaining balance, arising from loans to two related companies in which apparent irregularities and misrepresentations were recently detected,” CEO Harris Simmons said in Zions’ earnings release.

“Legal action has been initiated to pursue recovery of the amounts owed from guarantors of the credits. Excluding this loss, remaining net charge-offs were very benign at $6 million, or 4 basis points of average loans on an annualized basis.”

Zions reported that net interest income rose 8% year over year to $672 million while the bank’s provision for credit losses rose to $49 million, compared with $13 million the previous year, primarily due to the specific charge-offs.

Diluted earnings per share of $1.48 beat estimates for $1.40 per share, according to S&P Global Market Intelligence.

Yahoo Finance’s Jake Conley reports:

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The earnings season is starting to pick up steam, with 13% of S&P 500 companies reporting this week. So far, investors have seen more positive earnings surprises than usual, but signs of worry still abound, according to Bank of America analysts.

The analysts estimated that 76% of S&P 500 companies that have shared results so far have reported earnings beats, which is ahead of the week one average of 68%. The artificial intelligence arms race and capital expenditures cycle remain strong themes, they noted.

Slated to report earnings this week are Netflix (NFLX), Tesla (TSLA), Procter & Gamble (PG), General Motors (GM), and Ford (F), among others. That tees up a rush of earnings the following week, with 44% of S&P 500 companies reporting in the final week of October (see chart below).

Ally Financial (ALLY), a digital bank and auto financing company, said it’s not seeing significant deterioration in its subprime lending business.

“We’re observing consumer behaviors that are honestly better than our expectations,” Ally CEO Michael Rhodes said on the company’s third quarter earnings call. “And I appreciate there’s a lot of macro uncertainty in the environment, but we’re not seeing that impact our credit performance.”

In Q3, Ally reported earnings per share of $1.18, topping estimates for $0.96 per share, according to S&P Global Intelligence. Revenue of $2.17 billion also surpassed expectations for $2.10 billion.

The lender received a record 4 million auto financing applications during the quarter. Its auto net charge-off rate — or debt the company is owed that is unlikely to be repaid — fell by 36 basis points year over year to 1.88%, below the 2.24% charge-off rate in Q3 2024.

Listen to a replay of the earnings call here.

Truist (TFC) stock rose 1.5% in premarket trading as the Charlotte, N.C.-based bank recorded a rise in third quarter profit on Friday.

Net income rose to $1.3 billion, representing $1.04 per diluted share, which exceeded Wall Street analyst estimates of $0.99 per share. Noninterest income increased 11% to $158 million, versus the second quarter, due to greater activity in investment banking, trading, and wealth management.

The bank said it saw broad-based loan growth during the quarter, while average deposits decreased 1%.

It also noted that loans that were 90 days or more past due rose by 1 basis point quarter over quarter, totaling $584 million at the end of September. In general, regional bank earnings eased some of the market’s concerns about credit stress on Friday after Zions (ZION) and Western Alliance (WAL) alleged fraud on some of their loans.

Comerica (CMA) stock fell slightly in premarket trading, as the bank reported generally steady operations but a decline in noninterest income ahead of its takeover by Fifth Third.

Net interest income grew over 7% to $574 million in the third quarter. Loans remained relatively stable at $50.8 billion, while deposits increased $1.5 billion to $62.7 billion. Noninterest income dipped to $264 million as capital markets income slowed.

At the end of September, provisions for credit losses totaled $725 million. On credit quality, Comerica CEO Curtis Farmer noted a slightly improved economic forecast.

“Our proven credit discipline and prudent underwriting continued to deliver results with net charge-offs of 25 basis points, still within the low end of our normal range,” Farmer said. “Economic conditions modestly improved and migration remained manageable, driving a slight decline in our allowance for credit reserves to 1.43% of total loans.”

On Oct. 6, Comerica announced it had entered an agreement to be acquired by Fifth Third Bank (FITB). You can view that bank’s results in the blog post below.

Ohio-based regional bank Fifth Third (FITB) reported earnings that exceeded expectations on Friday as investors became jittery over the credit health of smaller banks.

Fifth Third’s net interest income hit $1.52 billion in Q3, a 7% increase year over year. Earnings per share grew 17% annually to $0.91, beating estimates of $0.86.

The bank’s provisions for loan losses increased 23% year over year to $197 million.

“Total average portfolio loans and leases of $123 billion remained stable compared to the prior quarter,” the company said. “Average commercial portfolio loans and leases of $75 billion decreased 1%, due to declines in commercial mortgage and commercial construction loans, partially offset by increases in C&I middle market loans. Average consumer portfolio loans of $48 billion increased 2%, driven by continued strong growth in indirect secured consumer and home equity loans.”

American Express stock rose slightly in premarket trading after the company reported earnings that beat expectations and provided an update on its refreshed Platinum card.

From Bloomberg:

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Reuters reports:

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Interactive Brokers (IBKR) stock climbed 1% after the company reported a boost in client trading volume and robust third quarter earnings.

The electronic brokerage stated that its customer accounts increased 32% to 4.13 million, which led to growth in overall trading volume during the quarter. Positive overall market sentiment helped boost trading as well, as investors bought dips and participated in rallies, the company said in its Q3 earnings call.

In total, commission revenue increased 23% year over year to $537 million during the quarter, while net interest income rose 21% to $967 million.

Earnings per share of $0.59 topped Wall Street analysts’ estimates for earnings of $0.53 per share. Revenue was also well above expectations, with the quarter’s $1.65 billion exceeding estimates of $1.52 billion.

Listen to the earnings call live here.

CSX (CSX) reported better-than-expected profits and revenue for the third quarter, as declines in coal prices and merchandise volume were partially offset by intermodal volume growth and higher prices in other merchandise.

The Jacksonville, Fla.-based freight railroad operator posted earnings per share of $0.44, compared to analysts’ expectations for $0.42 per share, according to S&P Global Market Intelligence.

Revenue declined 1% year over year to $3.59 billion for the quarter, although the metric still exceeded expectations of $3.57 billion.

Volume totaled 1.61 million units for the quarter, up 1% annually, though the operating margin shrank to 30.3% from 37.4% in the same period a year ago.

CSX stock rose 3% in after-hours trading

U.S. Bancorp (USB) reported net income of $2.00 billion, or $1.22 a share, in the third quarter, beating Wall Street estimates of $1.89 billion and rising from $1.72 billion in the same period last year.

Revenue reached a record $7.3 billion, ahead of estimates for $7.1 billion, according to S&P Global Market Intelligence, while net interest income rose 2% to $4.25 billion.

Provisions for credit losses reached $571 million in Q3, a 2.5% increase from $557 million in Q3 2024.

US Bancorp stock advanced 1.5% ahead of the opening bell.