First Horizon profits drop 14,6% in quarter
First Horizon Corp., said Tuesday its first quarter net income totaled $187 million, or 34 cents per share, down from the $219 million, or 40 cents per share, earned in the same period a year ago.
Earnings, adjusted for non-recurring costs, came to 38 cents per share. Although down from a year ago, the results still beat Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 34 cents per share.
Tennessee's biggest bank posted revenue of $741 million in the period. Its revenue net of interest expense was $707 million, also beating Street forecasts. Six analysts surveyed by Zacks expected $704.4 million.
"While higher long-term rates and global uncertainty impacted our countercyclical businesses, our highly asset-sensitive balance sheet is well positioned to benefit from rising short-term rates," First Horizon CEO Bryan Jordan said in Tuesday's earnings report. "Our underlying results this quarter reflect the tremendous opportunities and momentum inherent in our higher-growth markets with C&I loan growth of 4% before the impact of paycheck protection program and mortgage warehouse loans."
Truist Bank boosts quarterly net income
Truist Bank said net income in the first quarter of 2022 was up 35.3% from a year ago to $1.3 billion, or 98 cents per share. Adjusted earnings in the period totaled $1.23 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.18 per share a year ago.
"We advanced our ESG (environmental, social and governance) strategy with the issuance of our first social bond-becoming the first U.S. regional bank to do so-and became the lead investor for Greenwood, an innovative digital banking platform designed for Black and Latinx consumers and business owners," Truist CEO Kelly S. King said in the bank's quarterly earnings report. "In addition, we received an 'Outstanding' CRA rating for our community development efforts, and continued to make great progress towards our Community Benefits Plan, after ending 2020 at 114 percent of our annual target. These achievements reflect our continued commitment to support and invest in the diverse communities we're proud to serve.
Truist Financial Corp., posted revenues of $5.33 billion for the quarter ended March 2022, down from year-ago revenues of $5.48 billion.
Netflix shares drop after subscriber loss
Netflix suffered its first subscriber loss in more than a decade, causing its shares to plunge 26% in extended trading amid concerns that the pioneering streaming service may have already seen its best days.
The company's customer base fell by 200,000 subscribers during the January-March period, according to a quarterly report released Tuesday. It's the first time that Netflix's subscribers have fallen since the streaming service became available throughout most of the world outside of China six years ago. Worse, Netflix is now projecting a loss of another 2 million subscribers during the April-June period.
Revenue increased 10% to $7.9 billion in the first quarter, compared to a year earlier. Net earnings were $1.6 billion, down from $1.7 billion in the first quarter of 2021.
"I think people deluded themselves into looking at the planet saying there's over 2 billion households and 'Oh my God, these guys can be like Facebook,'" said Michael Pachter, a managing director with Wedbush Securities. "Reality set in."
- Compiled by Dave Flessner