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 kicked off this week and five of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• JPMorgan, PepsiCo, BlackRock, Delta Airlines, and Domino’s Pizza

Let’s dive in.

JPMorgan Chase (JPM)

JPMorgan Chase's third-quarter results exceeded expectations for both profit and revenue.

The bank’s profit declined 2% to $12.9 billion, while revenue increased 6% to $43.32 billion. Net interest income rose 3% to $23.5 billion, surpassing estimates, driven by investments and credit card loan growth.

Investment banking fees increased 31% to $2.27 billion, exceeding the $2.02 billion estimate. Fixed income trading generated $4.5 billion in revenue, unchanged from a year earlier but topping the $4.38 billion estimate. Equities trading jumped 27% to $2.6 billion, edging out the $2.41 billion estimate.

The bank raised its 2024 net interest income forecast to $92.5 billion and lowered its projected annual expenses to $91.5 billion.

JPM shares are +4.0% so far this week.

PepsiCo (PEP)

PepsiCo lowered its full-year outlook for organic revenue growth after two consecutive quarters of weaker-than-expected sales.

The company reported that net income fell to $2.93 billion, or $2.31 per share, down from $3.09 billion, or $2.24 per share, a year earlier. Net sales declined 0.6% to $23.32 billion.

Organic revenue grew by 1.3%, but volumes for both food and beverages dropped by 2%, particularly in North America where consumer demand weakened. Quaker Foods saw the largest volume decline at 13%, while Frito-Lay dropped 1.5%.

Pepsi now expects only a low-single-digit increase in organic revenue for 2024, down from its previous 4% growth target, but still anticipates an 8% rise in core earnings per share.

PEP shares are +3.5% so far this week.

BlackRock (BLK)

BlackRock shares rose after the company reported strong third-quarter results that exceeded analyst expectations.

Revenue increased 15% year-over-year to $5.2 billion, surpassing the $5.03 billion estimate, while adjusted EPS rose 5% to $11.46, beating the $10.38 consensus.

Total assets under management (AUM) grew by $2.4 trillion to $11.5 trillion, driven by $456 billion in net inflows and positive market movements.

The firm saw net inflows of $221 billion in the quarter, resulting in a 5% growth in organic base fees and a 26% rise in adjusted operating income, with margins expanding to 45.8%.

Investment advisory, administration fees, and securities lending revenues increased to $4.030 billion from $3.681 billion a year ago, while technology services revenue decreased to $403 million from $407 million.

BlackRock did not provide guidance, though CEO Laurence Fink did say that the firm remains focused on growth and long-term value for clients and shareholders.

BLK shares are +3.2% so far this week.

Delta Airlines (DAL)

Delta Air Lines expects earnings growth in Q4 due to strong travel demand and holiday bookings, though not as much as initially expected.

Net income rose 15% to $1.27 billion, or $1.50 per share, with revenue up 1% to $15.68 billion. Passenger revenue was steady from last year, though premium cabin sales outpaced the main cabin.

A July CrowdStrike outage hurt Q3 earnings by 45 cents per share and cost Delta $380 million in revenue.

For Q4, Delta forecasts adjusted earnings of $1.60 to $1.85 per share, with 2%-4% revenue growth. Full-year earnings are still expected between $6 and $7 per share, excluding the outage impact.

DAL shares are +1.0% so far this week.

Domino’s Pizza (DPZ)

Domino’s Pizza posted mixed results for the third quarter and trimmed its full year guidance.

The pizza chain beat earnings expectations with net income of $146.9 million, or $4.19 per share, compared to estimates of $3.64. However, revenue grew 5% year-over-year to $1.08 billion, missing the $1.1 billion forecast.

While higher order volumes and prices drove growth, a shift toward less profitable products hurt sales. U.S. same-store sales rose 3% while international same store sales rose just 0.8%.

The company cut its global retail sales growth forecast for 2024 to 6%, down from 7%, citing a tough macroeconomic environment. Domino’s also lowered its new store openings target to 800-850, down from an earlier projection of 825-925.

DPZ shares are -0.8% so far this week.

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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.