Latest news with #BankOfAmerica
Yahoo
2 hours ago
- Automotive
- Yahoo
Tariffs Cloud General Motors' Outlook As Annual Profits Remain At Risk
General Motors Company (NYSE:GM) is navigating a complex automotive landscape, contending with rising tariffs and significant capital expenditures, yet the company remains steadfast in its projection of $7.5 billion to $10 billion in free cash flow for 2025. Despite a mixed second quarter, marked by a sharp drop in the company's adjusted EBIT margins to 6.4% and a substantial $1.1 billion tariff headwind, the auto giant still surpassed revenue and earnings expectations. However, the company anticipates a challenging second half, particularly in North America, with expected declines in wholesale volumes and increased tariff burdens, though strategic measures are in place to mitigate these this backdrop, Bank Of America Securities analyst Federico Merendi reiterated the Buy rating on General Motors, lowering the price forecast from $65 to $62. The auto behemoth registered second-quarter adjusted earnings per share of $2.53, beating the analyst consensus estimate of $2.40. Quarterly sales of $47.12 billion outpaced the Street view of $45.57 billion. Merendi highlights that China operations have now delivered two consecutive profitable quarters. He adds that the company kept its full‑year guidance intact but cautioned that adjusted EBIT in the back half is likely to trail first‑half results, driven by a mid‑single‑digit sequential drop in North American wholesale volumes, translating to roughly an 8% year‑over‑year decline in the second half of 2025. Merendi also points out that, unlike earlier messaging, the third quarter will carry a heavier gross tariff burden than the second quarter, though mitigating actions should soften the impact, and that stronger free cash flow in the second half could pave the way for share buybacks. Looking toward year‑end, the analyst sees a tougher fourth quarter, with North America deliveries down about 9% and margin pressure, while noting that favorable mix shifts and further improvements in China should help offset some of those headwinds. The analyst notes that while higher capital expenditures aren't ideal, General Motors' peers face the same challenge, making the relative impact more manageable. General Motors still expects to generate $7.5 billion to $10 billion of adjusted free cash flow in 2025, providing flexibility for both shareholder returns and reinvestment in the business. Price Action: GM shares are trading higher by 8.79% to $53.19 at last check Wednesday. Read Next:Photo by Jonathan Weiss via Shutterstock Latest Ratings for GM Date Firm Action From To Mar 2022 Benchmark Maintains Buy Feb 2022 Nomura Instinet Downgrades Buy Neutral Feb 2022 Morgan Stanley Downgrades Overweight Equal-Weight View More Analyst Ratings for GM View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? GENERAL MOTORS (GM): Free Stock Analysis Report This article Tariffs Cloud General Motors' Outlook As Annual Profits Remain At Risk originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
4 days ago
- Business
- Yahoo
Stocks to Watch Recap: J&J, UnitedHealth, Goldman Sachs, Ford
↗️ Johnson & Johnson (JNJ): J&J posted better-than-expected results and boosted its annual outlook. Shares rose 6.2%. 🔎 Goldman Sachs (GS), Bank of America (BAC), Morgan Stanley (MS): The banks reported stronger-than-forecast profits, as tariff-related market turbulence boosted trading. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Bank of America reports Q2 earnings beat
Bank of America (BAC) reported second quarter adjusted EPS of $0.89, beating estimates of $0.85, with revenue near $26.5 billion. Yahoo Finance Reporter Josh Schafer highlights the latest report and CEO Brian Moynihan's comments on consumers maintaining steady spending. To watch more expert insights and analysis on the latest market action, check out more Morning Brief: Market Sunrise here. Breaking news. Bank of America just reporting second quarter earnings. The bank posted adjusted earnings per share of of 89 cents per share, higher than analyst expectations of 85 cents per share, and that and then revenue coming in at 26 and a half billion dollars. That's roughly in line with estimates. You can see on your screen now, stock rising in reaction up about two almost 2% at one point. Now up a little bit over 1%. I do want to highlight a quote from Bank of America CEO Brian Moynihan. He had some commentaries on the US consumer, saying quote, consumers remain resilient with healthy spending and asset quality, and commercial borrower utilizations rates rose. So a healthy consumer is what Bank of America is seeing here, and I want to get you a couple other key numbers within this release. So net interest income for the second quarter from Bank of America coming in at 14.67 billion. That was above estimates for 14.6 billion. So slightly above estimates there. A key metric, though, that seems to maybe be driving this stock higher right now, I want to look at trading revenue. Trading revenue in the second quarter for BofA coming in at 5.38 billion. The street was looking for 4.94 billion, so a pretty big beat on trading revenue there. Now remember, that was a story we had been following yesterday as well. Uh, city also going up higher yesterday on trading revenue, of course, this follows a relatively volatile market quarter for the second quarter in tariff reactions. So you're seeing the banks sort of benefiting from some of that. We'll be watching how that impacted Goldman Sachs and Morgan Stanley later on today. And then I also want to take a look at different sides of this stock move you're seeing right now. So Bank of America up almost 2% right now, but you're looking at that one-year chart stock. It only been up 10%. You flip over to JP Morgan's estimates from yet or earnings from yesterday, stock didn't really move well on relatively strong earnings, but stock had been up over 40% over the past year. So perhaps you're seeing a little bit of a difference there. A final number I want to bring you from BofA, looking at the second quarter, investment banking revenue coming in at 1.43 billion. That was above estimates slightly, and that was an interesting metric. Yeah, above estimates for 1.27 billion. Yesterday, remember, JP Morgan investment banking had been a key metric for them. Investment banking had come in higher than expected. We've been watching sort of as we delve into these releases, and certainly you'll be able to see this in Morgan Stanley and Goldman Sachs later this morning, how the pickup in the M&A market, pickup in the IPO market, might be impacting deal making and that part of the business. Overall, relatively solid report it seems from Bank of America. Market seems to be enjoying this one. Again, stock up almost 2%. We'll be keeping a close eye on that earnings call later this morning, and we'll be giving you more updates on the financial sector throughout the morning on our morning brief show later.
Yahoo
6 days ago
- Business
- Yahoo
PBOC governor, Bank of America senior executive discuss economy, financial markets
BEIJING (Reuters) -China's central bank governor Pan Gongsheng met Bank of America's president of international business Bernard Mensah earlier this week to discuss economic and financial matters, the People's Bank of China said in a statement on Friday. The Tuesday meeting included an exchange of views on the global economic and financial situation, China's macroeconomic policies, and its financial markets, the PBOC said.
Reuters
6 days ago
- Business
- Reuters
PBOC governor, Bank of America senior executive discuss economy, financial markets
BEIJING, July 18 (Reuters) - China's central bank governor Pan Gongsheng met Bank of America's president of international business Bernard Mensah earlier this week to discuss economic and financial matters, the People's Bank of China said in a statement on Friday. The Tuesday meeting included an exchange of views on the global economic and financial situation, China's macroeconomic policies, and its financial markets, the PBOC said.
