Good morning investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season is winding down but three of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• JPMorgan, PepsiCo, and Delta

Let’s dive in.

Pepsico (PEP)

PepsiCo reported mixed quarterly results, impacted by decreasing demand for its beverages and snacks in North America. 

PepsiCo’s net income rose 12% from last year to $3.08 billion, or $2.23 per share. Net sales increased nearly 1% to $22.5 billion, but were below estimates of $22.6 billion.

The food and beverage company reported a 1.9% rise in organic revenue driven by international business. However, North American volumes fell, with Frito-Lay down 4% and beverages down 3%, affected by product recalls and shrinking demand. Additionally, Quaker Foods North America saw a 17% volume drop due to recall issues.

PepsiCo narrowed its full-year revenue outlook to about 4% organic growth and maintained its earnings growth forecast of at least 8%.

PEP shares are flat so far this week.

JPMorgan Chase (JPM)

JPMorgan Chase reported strong second-quarter results that topped estimates.

JPMorgan reported revenue rising 20% to $50.99 billion and earnings jumping 25% to $18.15 billion, or $6.12 per share. Excluding specific gains associated with Visa, profit was $13.1 billion in the quarter, or $4.40 per share.

The bank reaped $2.3 billion in investment banking fees, exceeding estimates by roughly $300 million and 50% higher than the same period last year.

CEO Jamie Dimon highlighted concerns about potential risks such as higher inflation and interest rates, and complex geopolitical situations. Despite these risks, JPMorgan raised its full-year net interest income forecast by $1 billion to $91 billion.

JPM shares are +1.7% so far this week.

Delta Airlines (DAL)

Delta Air Lines reported earnings and revenue that missed Wall Street estimates.

Delta's adjusted revenue for the quarter was $15.4 billion, a 5.4% increase from last year but below analyst estimates. Net income dropped nearly 30% to $1.31 billion, or $2.01 per share, with operating expenses up 10%. Adjusted earnings were $1.53 billion, or $2.36 per share, meeting analysts' expectations.

Premium ticket revenue grew 10% to $5.6 billion, while coach ticket revenue rose 0.3% to $6.7 billion. Delta's American Express credit card deal generated $1.9 billion, up 9%.

The airline forecast record third-quarter revenue due to strong summer travel demand but projected sales growth of up to 4%, below analysts' 5.8% estimate. Delta expects adjusted earnings per share of $1.70 to $2, short of the $2.05 estimated by analysts, and plans to grow flying capacity by 5% to 6% in the third quarter, slower than the 8% growth in the second quarter.

DAL shares are -2.7% so far this week.

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Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.