Category

Earnings Alerts

Nokia OYJ (NOKIA) Earnings: 2Q Adjusted Operating Profit Surpasses Estimates with Strong Margins

By | Earnings Alerts
  • Adjusted operating profit: €423 million, surpassing estimate of €371.9 million.
  • Adjusted operating margin: 9.5%, above the estimated 7.45%.
  • Adjusted gross margin: 44.7%, higher than the estimated 41.2%.
  • Cloud & Network Services net sales: €615 million, below the estimate of €708.7 million.
  • Nokia Technologies net sales: €356 million, exceeding the estimate of €330.8 million.
  • Group Common & Other net sales: €4 million, falling short of the estimate of €26.6 million.
  • Operating profit: €432 million, much higher than the estimate of €223.4 million.
  • Mobile Networks operating profit: €171 million, greatly surpassing the estimate of €9.02 million.
  • Network Infrastructure operating profit: €97 million, under the estimate of €205.5 million.
  • Cloud & Network Services operating loss: €25 million, versus an estimated profit of €15.7 million.
  • Nokia Technologies operating profit: €258 million, higher than the estimate of €245.3 million.
  • Group Common & Other operating loss: €78 million, lower than the estimated loss of €88.9 million.
  • Mobile Networks gross margin: 43.2%, above the estimate of 37%.
  • Network Infrastructure gross margin: 38.4%, near the estimate of 38.5%.
  • Cloud & Network Services gross margin: 33.7%, below the estimate of 37.1%.
  • Nokia Technologies gross margin: 100%, matching the estimate of 100%.
  • Market recommendations: 10 buys, 16 holds, and 3 sells.

A look at Nokia OYJ Smart Scores

FactorScoreMagnitude
Value5
Dividend4
Growth5
Resilience5
Momentum4
OVERALL SMART SCORE4.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Nokia OYJ appears to have a positive long-term outlook across multiple factors. With top scores in Value, Growth, Resilience, and strong scores in Dividend and Momentum, the company seems to be well-positioned for sustained success. Nokia OYJ‘s strong emphasis on value, growth potential, resilience in the face of challenges, and consistent performance momentum bode well for its future prospects.

Nokia OYJ, a global communications company with a network of production facilities specializing in location intelligence and network infrastructure, as well as a robust sales and customer service network, also boasts worldwide research and software development capabilities. With high scores across key factors, Nokia OYJ appears to have a promising outlook for long-term growth and value creation in the ever-evolving communications industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Volvo Car AB (VOLCARB) Earnings: 2Q Revenue Misses Estimates Despite Strong Operating Income

By | Earnings Alerts





Volvo Car 2Q Highlights

  • Revenue: SEK101.45 billion, lower than the estimated SEK104.56 billion.
  • Operating Income: SEK7.97 billion, higher than the estimated SEK6.57 billion.
  • Ebit Margin: 7.9%, higher than the estimated 6.59%.
  • Total Sales Volume: 205,400 units, slightly below the estimated 209,775 units.
  • Europe Retail Sales: 104,000 units, slightly above the estimated 103,851 units.
  • China Retail Sales: 40,200 units, below the estimated 42,241 units.
  • US Retail Sales: 30,100 units, below the estimated 33,794 units.
  • Other Regions Retail Sales: 31,100 units, surpassing the estimated 29,889 units.
  • BEV Vehicles Sales: 52,600 units, below the estimated 56,606 units.
  • Analyst Ratings: 2 buy, 10 hold, 2 sell recommendations.
  • Corporate Comment: “Our core operational momentum remains on a firm footing, thanks to the strength of our balanced strategy, product portfolio and our agility in responding decisively to headwinds.”



A look at Volvo Car AB Smart Scores

FactorScoreMagnitude
Value4
Dividend1
Growth3
Resilience4
Momentum5
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Volvo Car AB, a company known for its manufacturing of automobiles worldwide, is showing a promising long-term outlook based on the Smartkarma Smart Scores analysis. With a strong value score of 4, Volvo Car AB seems to be attractively priced compared to its intrinsic value. This indicates potential for solid returns for investors. Additionally, the company’s resilience score of 4 suggests that it is well-equipped to withstand market challenges and economic downturns, providing stability to its operations.

Furthermore, Volvo Car AB‘s momentum score of 5 indicates that the company is gaining positive traction in the market, showing strong upward trends and performance. While the growth score of 3 is decent, there is room for potential improvement in this area. On the other hand, the low dividend score of 1 implies that Volvo Car AB may not be a top choice for income-seeking investors. Overall, Volvo Car AB‘s Smartkarma Smart Scores paint a picture of a company with solid value, resilience, and momentum, positioning it well for long-term success in the automotive industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Telenor ASA (TEL) Earnings: 2Q Revenue Misses Estimates but Net Income Exceeds Forecasts

By | Earnings Alerts
  • Telenor’s second-quarter revenue was NOK19.94 billion, falling short of the estimated NOK20.22 billion.
  • Annual revenue experienced a slight decline of 1.4% year-over-year.
  • The company’s net income was NOK2.54 billion, surpassing the estimate of NOK2.4 billion.
  • Organic revenue saw a growth of 1%.
  • Capital expenditure for the quarter was notably higher at NOK3.07 billion, compared to the estimated NOK2.27 billion.
  • Adjusted EBITDA came in at NOK8.79 billion, just above the estimate of NOK8.78 billion.
  • Service revenue was NOK16.3 billion, slightly exceeding the forecast of NOK16.25 billion.
  • Organic service revenue increased significantly by 4.5%.
  • Analyst ratings include 15 buys, 9 holds, and 2 sells.

A look at Telenor ASA Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth3
Resilience3
Momentum3
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Telenor ASA‘s long-term outlook appears to be fairly positive. The company received solid scores across the board, with a moderate rating for Value, Dividend, Growth, Resilience, and Momentum. Telenor ASA, an international telecommunications company, operates in multiple markets providing telecommunication, data, and media services. With mobile operations in 13 markets spanning across regions like the Nordic countries, Central and Eastern Europe, and Asia, Telenor ASA also offers fixed telephony, broadband, and TV services in the Nordic region. This diverse presence in various markets positions Telenor ASA for potential growth and stability in the long run.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Emirates NBD Bank PJSC (EMIRATES) Earnings: 2Q Net Income Surges to 7.1 Billion Dirhams, Exceeding Estimates

By | Earnings Alerts
  • Emirates NBD’s 2Q Net Income: Recorded at 7.1 billion dirhams, a 14% increase year-over-year. This exceeds the estimate of 4.83 billion dirhams.
  • Operating Income: Reported at 10.7 billion dirhams, a slight decrease of 0.9% year-over-year, but still above the estimate of 10.64 billion dirhams.
  • Net Interest Income: Reached 7.9 billion dirhams, growing by 9.7% year-over-year.
  • Net Fee & Commission Income: Stood at 1.74 billion dirhams, marking a significant growth of 56% year-over-year.
  • Earnings Per Share (EPS): Increased to 1.10 dirhams from 0.97 dirhams year-over-year.
  • Cost to Income Ratio: Reported at 28.5%.
  • Net Interest Margin: Recorded at 3.65%.
  • Total Assets: Valued at 931 billion dirhams, up 15% year-over-year.
  • Total Deposits: Recorded at 624 billion dirhams, a 12% increase year-over-year.
  • 2Q Impairment Credit: Stood at 1.3 billion dirhams, driven by higher Denizbank Net Interest Margin (NIM).
  • Favorable Loan Pricing: Observed at the Turkey unit.
  • Analyst Consensus: 16 buy ratings, 0 hold ratings, and 0 sell ratings.

A look at Emirates NBD Bank PJSC Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth5
Resilience3
Momentum3
OVERALL SMART SCORE4.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Emirates NBD Bank PJSC, a prominent player in the banking and financial services sector, showcases a solid long-term outlook as indicated by its Smartkarma Smart Scores. With high marks for Dividend and Growth factors, investors can look forward to potential returns and steady expansion opportunities. The company’s commitment to value also shines through with a strong score in this aspect, emphasizing its attractiveness for those seeking good investment value.

While the scores for Resilience and Momentum are slightly lower, Emirates NBD Bank PJSC‘s overall outlook remains positive, backed by its diverse business segments that include corporate, retail, and private banking. Based in Dubai, United Arab Emirates, the company is well-positioned to leverage its offerings such as treasury services and Islamic banking products to drive sustainable growth in the long run.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Bank of the Philippine Islands (BPI) Earnings: 2Q Net Income Hits 15.3B Pesos, Exceeding Expectations

By | Earnings Alerts
  • 2Q Results:
    • Net income: 15.3 billion pesos
    • Revenue: 41.7 billion pesos
    • Revenue estimate: 39.86 billion pesos
  • 1H Results:
    • Revenue: 81.2 billion pesos
    • Net interest income: 61.3 billion pesos
    • Provision for loan losses: 3 billion pesos
    • Non-performing loans ratio: 2.2%
    • Net income up 21.5% y/y
    • Return on equity: 15.5%
    • Return on assets: 2%
    • Revenues rose 23.8% y/y
    • Net interest income increased 22.2% y/y
    • Non-interest income up 28.7% y/y to 19.9 billion pesos
    • Forex gains up 58.6% y/y to 2.2 billion pesos
    • Operating expenses up 21.9% y/y to 38.3 billion pesos
    • Cost-to-income ratio: 47.1%
    • Provisions for losses rose 50% y/y
    • NPL coverage at 127.6%
  • 2H Projections:
    • Net income was up 17.5% y/y
    • Revenue increased by 23%
  • Market Ratings:
    • 13 buys, 8 holds, 0 sells

A look at Bank of the Philippine Islands Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth4
Resilience5
Momentum4
OVERALL SMART SCORE3.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

The long-term outlook for Bank of the Philippine Islands appears positive based on an analysis of its Smartkarma Smart Scores. With strong ratings in Growth, Resilience, and Momentum, the company is positioned well for future performance. These scores indicate that BPI is likely to experience solid growth, demonstrate resilience in varying market conditions, and maintain positive momentum in its operations.

Despite average scores in Value and Dividend, BPI’s overall outlook remains optimistic. The company’s focus on growth and ability to adapt to market changes, combined with its robust performance indicators, suggest a promising future for investors looking at potential long-term opportunities in the banking sector.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Santos Ltd (STO) Earnings: Strong 2Q Production and Sales Revenue Boost

By | Earnings Alerts
  • Production: Santos produced 22.2 million barrels of oil equivalent (mmboe) in the second quarter.
  • Sales Volume: The company’s sales volume reached 23.2 mmboe.
  • Sales Revenue: Santos generated $1.31 billion in sales revenue during this period.
  • Capital Expenditure: The capital expenditure for the quarter was $774 million.
  • Average Realized LNG Price: The average realized price for Liquefied Natural Gas (LNG) was $11.47 per mmBtu.
  • Average Realized Oil Price: The average realized price per barrel of oil was $89.48.
  • Analyst Ratings: The company has been rated with 12 buys, 3 holds, and 1 sell.

A look at Santos Ltd Smart Scores

FactorScoreMagnitude
Value4
Dividend4
Growth4
Resilience2
Momentum4
OVERALL SMART SCORE3.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Santos Ltd seems to have a promising long-term outlook. With strong scores in Value, Dividend, Growth, and Momentum, the company appears to be well-positioned for future success. However, its lower score in Resilience may indicate some potential vulnerability to market fluctuations or external risks that could impact its performance.

Santos Ltd is a company that explores and produces natural resources like natural gas and crude oil across various regions, including Australia, the United States, Indonesia, and Papua New Guinea. Their operations involve major onshore and offshore petroleum exploration activities, along with the transportation of crude oil through pipelines. With consistently high scores in key areas like Value, Dividend, Growth, and Momentum, Santos Ltd shows strong potential for continued growth and performance in the energy sector.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Evolution Mining (EVN) Q4 Earnings: Gold Production Meets Estimates with 212,070 oz

By | Earnings Alerts
  • Evolution Mining‘s gold production for Q4 2024 met estimates at 212,070 ounces.
  • The estimated gold production was 212,947 ounces.
  • Cowal mine produced 94,826 ounces of gold.
  • Ernest Henry mine produced 19,458 ounces of gold.
  • Mungari mine produced 34,378 ounces of gold.
  • Mt Rawdon mine produced 19,544 ounces of gold.
  • All-in sustaining costs were A$1,275 per ounce.
  • Gold sales volume reached 206,598 ounces.
  • Stock analyst ratings included 10 buys, 5 holds, and 4 sells.

A look at Evolution Mining Smart Scores

FactorScoreMagnitude
Value3
Dividend2
Growth3
Resilience2
Momentum3
OVERALL SMART SCORE2.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Evolution Mining holds a favorable long-term outlook. With solid scores in areas like Value, Growth, and Momentum, the company appears to be well-positioned for future success. Evolution Mining‘s focus on value and growth, combined with positive momentum, suggests a promising trajectory ahead. Although some areas like Dividend and Resilience have slightly lower scores, the overall picture points towards a positive long-term outlook for the company.

Evolution Mining Ltd, a gold exploration company with operations in Western Australia, seems poised for continued growth and success. With key assets including the Cracow, Edna May, Mt Rawdon, and Pajingo gold mines, as well as the Mt Carlton development project, Evolution Mining has a strong foundation for future prosperity. The Smart Scores highlight the company’s strength in value, growth, and momentum, indicating a promising path forward for Evolution Mining in the long term.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Prologis Inc (PLD) Earnings: 2Q Net Income Surpasses Estimates with MXN1.03 Billion

By | Earnings Alerts
  • Net Income: Fibra Prologis reported a net income of MXN1.03 billion, surpassing the estimate of MXN943 million.
  • Revenue: The company’s revenue was MXN1.51 billion, slightly below the estimated MXN1.52 billion.
  • Market Sentiment: The stock has received 8 buy ratings, 3 hold ratings, and 1 sell rating from analysts.
  • Upcoming Conference Call: Management will discuss the results during a call at 9 a.m. Mexico City time on July 18.

A look at Prologis Inc Smart Scores

FactorScoreMagnitude
Value3
Dividend4
Growth4
Resilience3
Momentum3
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Prologis Inc, a key player in the industrial real estate sector with a global presence across the Americas, Europe, and Asia, has garnered positive Smartkarma Smart Scores in several key areas. The company’s strong outlook in dividends and growth, with respective scores of 4, reflects a solid financial performance and potential for future expansion. Moreover, Prologis Inc‘s resilience score of 3 underscores its ability to weather market challenges and maintain stability over the long term. While the company’s value and momentum scores are equally solid at 3, indicating a balanced position in terms of market value and performance.

In summary, Prologis Inc stands out as a reputable owner, operator, and developer of industrial real estate, providing modern distribution facilities to a diverse range of customers globally. With favorable Smartkarma Smart Scores in key areas such as dividends, growth, and resilience, the company appears well-positioned for sustained success in the competitive real estate market.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Steel Dynamics (STLD) Earnings: 2Q Adjusted EBITDA Misses Estimates Despite Strong Net Sales

By | Earnings Alerts
  • Adjusted EBITDA: Missed estimates with $686.4 million versus the expected $698.9 million.
  • Earnings Per Share (EPS): $2.72.
  • Net Sales: Exceeded estimates at $4.63 billion compared to the expected $4.42 billion.
  • Steel Net Sales: $3.13 billion, slightly above the $3.07 billion estimate.
  • Steel Fabrication Net Sales: $472.8 million, outperforming the estimate of $446 million.
  • Metals Recycling Net Sales: $586.4 million, higher than the expected $554 million.
  • Other Products Net Sales: Significantly above estimates at $441.1 million versus $305.4 million.
  • Ferrous Shipments: 1.51 million tons, well above the estimate of 561,900 tons.
  • Nonferrous Shipments: 304.02 million pounds, surpassing the estimate of 292.22 million pounds.
  • Steel Fabrication Shipments: 159,069 tons, slightly higher than the estimate of 153,135 tons.
  • Cash Flow from Operations: Fell short at $382.6 million compared to the expected $632.7 million.
  • Liquidity: Strong liquidity maintained at $2.7 billion.
  • Organic Growth Investment: $419 million invested in growth projects.
  • Shareholder Return: $382 million distributed through cash dividends and share repurchases.
  • Market Dynamics: Stable underlying steel demand in the second quarter, contrasting with lower realized selling values in steel operations.
  • Customer Orders: Inconsistency within the steel platform and very low inventory levels despite the stable demand.
  • Analyst Ratings: 2 buys, 7 holds, and 4 sells.

Steel Dynamics on Smartkarma


Analyst coverage of Steel Dynamics on Smartkarma has been positive, with insights from Baptista Research shedding light on the company’s strong performance and growth potential. In their report “Steel Dynamics: How Long Will The Stability in Demand Across Operating Platforms Last? – Major Drivers,” Steel Dynamics showcased near-record quarterly steel shipments of 3.3 million tons and the introduction of new value-added flat rolled steel coating lines, contributing to product diversification with higher-margin products.

Furthermore, Baptista Research‘s analysis in “Steel Dynamics: Can The Robust Demand and Favorable Market Conditions Catalyze Growth In 2024? – Major Drivers” emphasized the company’s strategic advantages and operational excellence. Highlighting a record safety year and impressive financial achievements in Q4 and FY2023, Steel Dynamics reported revenues of $18.8 billion and cash flow from operations at $3.5 billion, positioning itself for potential growth in the coming years.



A look at Steel Dynamics Smart Scores

FactorScoreMagnitude
Value3
Dividend2
Growth5
Resilience3
Momentum3
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Steel Dynamics, Inc. is positioned for a promising long-term future, with a standout Smartkarma Smart Score of 5 for Growth. As a diversified carbon-steel producer based in the U.S., the company’s focus on expanding and evolving its operations bodes well for sustained growth opportunities. Additionally, with respectable scores of 3 for both Value and Resilience, Steel Dynamics demonstrates a solid foundation and adaptability in the ever-changing market landscape, enhancing its attractiveness to potential investors.

While the company’s Dividend and Momentum scores are at 2 and 3 respectively, the strong showing in Growth highlights Steel Dynamics‘ potential for future development and value creation. With its varied product offerings that include flat rolled steel sheet and structural beams, Steel Dynamics is well-positioned to capitalize on growth opportunities in the steel industry, providing investors with a compelling option for long-term investment consideration.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Discover Financial Services (DFS) Earnings: Surpassing Estimates with Robust 2Q Performance

By | Earnings Alerts
  • Discover Financial’s Q2 loans amounted to $127.6 billion, matching estimates closely.
  • Loans increased by 0.8% quarter-over-quarter (q/q), against an estimate of $127.71 billion.
  • Net interest margin increased to 11.2% from 11% (q/q), beating the estimate of 10.7%.
  • Earnings per share (EPS) saw significant growth to $6.06 from $3.54 year-over-year (y/y).
  • Revenue net of interest expense rose to $4.54 billion, a 17% increase y/y, exceeding the estimate of $4.17 billion.
  • Provision for credit losses significantly decreased by 43% y/y to $739 million, well below the estimate of $1.6 billion.
  • Charge-offs were at 4.83%, up from 3.22% y/y but still below the estimate of 4.96%.
  • Analyst Recommendations: 6 buys, 14 holds, 0 sells.

A look at Discover Financial Services Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth3
Resilience3
Momentum4
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Discover Financial Services is positioned well for the long term, boasting a solid overall outlook based on Smartkarma Smart Scores. The company scores a consistent 3 across key factors such as Value, Dividend, Growth, and Resilience, indicating a stable performance in these areas. Furthermore, Discover Financial Services shows promising Momentum with a score of 4, suggesting positive market traction. Combining these scores, Discover Financial Services appears to be a robust player in the financial sector.

As a credit card issuer and electronic payment services company, Discover Financial Services offers a range of financial products including credit cards, student and personal loans, and savings products like certificates of deposit. Additionally, the company operates an extensive ATM/debit network across the nation. With balanced Smart Scores across important metrics, Discover Financial Services seems well-positioned to maintain its competitive edge and achieve sustained growth in the long run.


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