| | | Good morning. It's January 17th, and today, we’ll look at the quarterly results of Truist Financial, SLB (formerly Schlumberger Ltd.), and Fastenal. | |
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| | | | | What to watch | Earnings: | Truist Financial [TFC]: Premarket Schlumberger [SLB]: Premarket Fastenal [FAST]: Premarket State Street [STT]: Premarket BOK Financial [BOKF]: Aftermarket | Economic Reports: | Housing starts [Dec]: 8:30 a.m. Building permits [Dec]: 8:30 a.m. Industrial production [Dec]: 9:15 a.m. Capacity utilization [Dec]: 9:15 a.m. |
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| | Banking | Truist Reports Strong Q4 Boosted by Investment Banking Gains | | Truist Financial’s (NYSE: TFC) profits for the fourth quarter are beyond Wall Street expectations, driven by robust gains in investment banking and trading as capital markets strengthened. | The Charlotte-based bank’s adjusted net income of $1.21 billion, or $0.91 per shareis more than analyst projections of $1.18 billion, or $0.88 per share. | Investment banking and trading revenue have surged 58.8% year-over-year to $262 million, reflecting the sector-wide resurgence in mergers and acquisitions, as well as equity and debt issuance during the latter half of 2024. This aligns with trends reported by larger rivals such as JPMorgan, Morgan Stanley, and Wells Fargo, which also benefited from capital market activity. | Net interest income is up by nearly 2% to $3.64 billion, supported by a resilient economy and declining interest rates. The bank’s net interest margin expanded to 3.07% from 2.95% a year earlier, indicating improved lending profitability. | Truist expects adjusted revenue for fiscal 2025 to grow by 3% to 3.5%, building on the positive momentum. Shares of Truist are up 3% in premarket trading as investors are reacting to the earnings beat. | Provision for credit losses fell by 18% during the quarter, underscoring the bank's efforts to manage credit risks effectively. This quarterly performance highlights Truist's ability to capitalize on a more favorable economic environment and growing corporate optimism. |
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| | Oil Services | Oil Services Giant SLB Posts Q4 Revenue Beat, Stock Climbs | | SLB’s (formerly Schlumberger Ltd.) better-than-expected fourth-quarter earnings are causing its stock to rise by nearly 3% in premarket trading today. The company's strong performance is fueled by robust growth in its international business, particularly in the Middle East, Asia, Europe, and Africa. | For the quarter, SLB’s adjusted earnings of $0.92 per share beat Wall Street expectations of $0.90. Revenue touched $9.28 billion, up from $9.16 billion a year ago, also surpassing analyst estimates of $9.18 billion. Despite these gains, reported per-share earnings are flat year-over-year at $0.77. | CEO Olivier Le Peuch attributed the company's growth to a strong international presence and expressed optimism about a more balanced oil supply in 2025. | SLB also announced a 3.6% increase in its quarterly dividend to $0.27 per share, payable on April 3 to shareholders of record as of February 5. Additionally, the company is boosting its share buyback program, authorizing at least $4 billion in repurchases this year. | Although SLB shares have declined 14% over the past 12 months, the latest results and strategic financial moves signal a potential turnaround, contrasting with the S&P 500's 25% gain over the same period. |
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| | Industrial Supplies | Fastenal Misses Estimates Despite Sales Growth | | Fastenal (NASDAQ: FAST) posted a modest drop in fourth-quarter profit, despite recording higher sales compared to the same period last year, which is causing its shares to decline by more than 4.5% in early trade. | The industrial and construction supplies manufacturer cited continued softness in the manufacturing sector as a key challenge. | Net income for the quarter is $262.1 million, or $0.46 per share, down slightly from $266.4 million, or $0.46 per share, a year ago. This is below analysts’ expectations of $0.48 per share. Revenue is up 3.4% year-over-year to $1.82 billion but is below the anticipated $1.84 billion. | Fastenal attributed the slow growth in daily sales, which has risen by just 2.1%, to reduced manufacturing activity. The company noted that many of its largest customers implemented sharp production cuts during the final two weeks of December amid holiday plant shutdowns. | The increase in unit sales was primarily driven by onsite locations opened in the past two years and, to a lesser degree, by growth among larger customers not serviced through onsite locations. Despite the challenges, Fastenal emphasized its commitment to leveraging recent site expansions for future growth. |
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| | Movers and Shakers | | Versus Systems Inc. [VS] - Last Close: $1.92 | Versus Systems Inc. is an engagement and rewards company. It enhances live events, games, shows, and apps by integrating interactive games, polling, trivia, and predictive elements. | Its stock is surging nearly 80%+ in premarket trading after announcing its expansion into Brazil, one of the world's largest gaming markets with over 100 million users. | My Take: The firm has been consistently making losses in the last five years. Even though the entry into the Brazil market could be a big move here, make sure you hedge your bets before investing in this stock. |
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| Nukkleus Inc. [NUKK] - Last Close: $20.53 | Nukkleus Inc. is a financial technology company providing blockchain-enabled solutions worldwide. Its stock is up by more than 70% in premarket trading today after announcing that it had regained compliance with Nasdaq's listing requirements, ensuring continued trading on the exchange. | My Take: As a blockchain and crypto related firm this stock has risen significantly in recent weeks. However, given its run-in with Nasdaq’s listing requirements and the significant volatility in crypto stocks, it might be best to adopt a wait and watch policy. |
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| iSpecimen Inc. [ISPC] - Last Close: $2.85 | iSpecimen Inc. is an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers. | The company's stock is up 22% in premarket trading today after securing suppliers for the human metapneumovirus (HMPV), a respiratory virus causing concerns of a potential public health pandemic. | My Take: This stock is down more than 70% in the last year and has seen several loss-making years, so it might be best to just keep this one on your radar for now. |
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| | | | Everything Else | China met its 5% growth target, but citizens voice concerns over worsening living standards. Apple struggles in China, falling to third in smartphone sales. Netflix prepares for a strong 2025 with sports, blockbuster series, and ad-driven revenue strategies. A UK judge ruled against Magomedov in $14 billion asset-stripping case involving Transneft and TPG. Mandarin learners on Duolingo jumped 216% as Chinese social app RedNote gains traction. Saab surpassed expectations with 23.4% organic sales growth in 2024. |
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| | That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia
Elite Trade Club |
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