JPMorgan tops earnings estimates, but trading revenue plunges
JPMorgan (JPM) kicked off big bank earnings season before the bell this morning. The company reported-better-than expected profit and revenue for the quarter, posting earnings per share of $1.76 on revenue of $26.2 billion. Analysts’ estimates were for $1.65 a share on sales of $25.23 billion. But it wasn’t all good news for the big bank. Overall trading revenue slumped 21% during the quarter, led by a 27% decline in fixed-income trading, which the bank said was due to sustained low volatility and tighter credit spreads.
Citi beats Wall Street earnings estimates
Citi (C) reported earnings of $1.42 a share on $18.17 billion in revenue, topping analysts’ expectations for a profit of $1.32 and sales of $17.90 billion. But revenue from fixed-income trading fell 16% during the quarter to $2.88 billion. In a statement, Citi CEO Michael Corbat said, “We had revenue increases in many of the products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses.”
Disney launches new digital film service
Hollywood is banding together. Disney’s (DIS) digital film service called ‘Movies Anywhere’ will now give users access to films from Disney, Universal, Warner Bros., Twentieth Century Fox (FOXA) and Sony Pictures, making it a one-stop shop for movie buffs. The app and website will allow users to buy and store movies from iTunes, Amazon Video, Google Play and Vudu to play across a number of devices.
AT&T warns natural disasters will hit third-quarter earnings
AT&T (T) warned investors in a filing that “devastating hurricanes, as well as earthquakes in Mexico, significantly impacted certain regions of our service area during the third quarter.” The telecom giant said the damage from the natural disasters will impact third-quarter revenue by nearly $90 million and pre-tax earnings by about $210 million, or 2 cents per share. AT&T also said it lost about 90,000 U.S. video subscribers during the quarter.