United States markets closed lower on Wednesday’s session mainly due to a re-emergence of the Covid19 infections across the world thus affecting investor sentiment even as the country goes into the presidential elections on Tuesday, November 3rd next week.
A number of companies this week released their quarterly results including Mastercard, Ford, Samsung, eBay, Visa, Microsoft, Ford, Gilead, Pinterest, Royal Dutch Shell plc among others.
Mastercard Q3 Earnings
American multinational financial services corporation Mastercard Inc on Wednesday released its earnings for the third quarter of 2020 with net income dropping by 28% to $1.5 billion.
Net revenue also dropped by 14% year on year to $3.8 billion. Operating income fell 21% to 2.1 billion and operating expenses also fell 4% to $1.7 billion.
“Mastercard has been focused on helping merchants, banks, fintechs, governments and consumers with
products and services to navigate the pandemic. We are seeing encouraging progress in the trajectory of
domestic spending, while travel spending remains a challenge,” said Ajay Banga, Mastercard CEO.
Visa Q3 Earnings
Visa Inc also released its financial results for the quarter ended September 30 2020 with revenues declining by 17% to $5.1 billion compared to the same period in 2019. Net income fell 29% to land at $2.1 billion while earnings per share was down by 28% to $0.97.
Revenues fell 5% to $21.8 billion while net income declined by 10% to $10.9 billion.
The company further disclosed that the total processed transactions, which represent transactions processed by Visa, for the three months ended September 30, 2020, were 37.4 billion, a 3% increase over the prior year.
Biopharmaceutical company Amgen Inc. on Wednesday released its earnings for the third quarter with earnings per share (EPS) rising by 5% to $3.43.
Total revenues rose 12% to $6.4 billion with net income up slightly by 3% to $2 billion. Operating income fell by 1% year to $2.45 billion.
Research-based biopharmaceutical company Gilead Sciences Inc. on Wednesday announced that its revenue in the third quarter of 2020 increased by 17% to $6.6 billion. Net income was $360 million from a net loss of $1.2 billion reported in the same period last year.
Image sharing and social media service Pinterest Inc. on Wednesday reported its financials for the third quarter with its revenue surging 58% to $443 million. The company reported an improved net loss of $94.2 million, compared to a net loss of $124.7 million posted in the same period in 2019.
The number of global active monthly users increased by 37% year on year to 442 million.
Ford Motor Company on Wednesday released its earnings for the third quarter with total revenue increasing slightly to $37.5 billion. Automotive revenue rose 2% to $34.7 billion.
Net income increased to $2.4 billion from $2 billion recorded in the same period in 2019.
“We know that there’s huge value to be unlocked as we turn around our automotive operations,” said Jim Farley, Ford’s president and CEO. “There will be an additional opportunity when we start growing again, which we will do with products and services customers can’t resist.”
E-commerce corporation eBay Inc. net revenues for the third quarter rose 25% year-on-year to $2.6 billion.
Earnings per diluted share from continuing operations stood surged 250% to $0.88 while net income was up significantly by 196% to $621 billion.
South Korean tech giant Samsung Electronics Co. revenue rose by 7.9% to $58.9 billion in the third quarter of 2020.
Operating profit rose 52% to $10.9 billion quarter on quarter basis and a massive 59% surge compared to the same quarter in 2019.
“Along with stronger sales, profitability improved via cost structure improvements via expansion of component standardization and efficient management of marketing expenses,” the company said in a statement.
Banking and Financial services company Standard Chartered PLC’s on Thursday announced its earnings for the third quarter of 2020 with its profit before tax dropping by 40% to $745 million.
Operating income quarter on quarter through September fell 12% to $3.52 billion.
“Africa & Middle East continues to experience difficult conditions that included the effect of low oil prices in the period, with profits down 93 per cent after a $127 million increase in credit impairments, over half of which was the result of an overlay.” The company said in a note to investors.
Royal Dutch Shell Q3
Royal Dutch Shell plc announced on Thursday that its IFRS earnings in the third quarter of 2020 amounted to $489 million, plunging 92% compared to the same period a year earlier.
Meanwhile, adjusted earnings in the three-month period tumbled 80% to $955 million. The energy giant also announced it raised its dividend by around 4% to $16.65 for the third quarter and annually thereafter, but noted the move is subject to board approval.
The Volkswagen Group sales revenue for the third quarter fell 3.4% to €59.4 billion compared to the same period in 2019, the company announced on Thursday.
Deliveries to customers in the first nine months of 2020 fell by 18.7% to 6.5 million vehicles.
“The Volkswagen Group’s business was heavily impacted by the Covid-19 pandemic in the first nine months of 2020 but recovered noticeably in the third quarter. This means that the declines in deliveries, sales revenue and profit as of the end of September were significantly more moderate than at the half-year mark.” It said in a statement.
Credit Suisse’s Q3
Credit Suisse Group AG on Thursday released its financials for the third quarter of 2020 with revenue falling by 2% to 5.2 billion Swiss francs. Net income fell 38% to 546 million Swiss francs while operating expenses rose 5% to 4.3 billion Swiss francs.
The company also revealed plans to restart share buybacks in January 2021, with a 2021 share buyback program of up to CHF 1.5 billion and an expected repurchase of at least CHF 1.0 billion next year.
Airbus SE which manufactures aeroplanes and military equipment on Thursday said its revenue for the third quarter of 2020 fell 27% to €11.2 billion compared to the same period in 2019.
Net loss came in at €767 million compared to a net income of €989 million reported in 2019.
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