Movers: Bank of America, Goldman Sachs, Lockheed Martin, Johnson & Johnson

Scott Peters
18 Apr, 2023
New York City

Bank of America Corp increased 0.7% to $30.55 after the bank reported better-than-expected revenue and earnings in the first quarter, reflecting a jump in net interest rate margin. 

Total revenue, net of interest expense, in the first quarter increased 13% to $26.3 billion and net income increased to $7.6 billion from $6.6 billion and diluted earnings per share increased to 94 cents from 85 cents a year ago. 

Client balances declined 2% from a year ago to $1.6 trillion but rose 2% from the fourth quarter and the bank increased its provision for loan losses to $931 million from $30 million a year ago largely driven by credit card balances.  

Goldman Sachs Group Inc decreased 2.3% to $331.89 after the investment bank reported lower-than-expected revenue and took a charge of $470 million related to the sale of its consumer loans business Marcus. 

Revenue in the first quarter ending in March decreased 5% to $12.2 billion from $12.9 billion. 

Investment banking fees declined 26% to $1.6 billion, bonds, currencies and commodities business dropped 17% to $3.9 billion and equities segment revenue decreased 7% to $3.0 billion. 

Asset and wealth management revenue rose 24% to $3.2 billion and platform solutions revenue soared 110% to $564 million.  

Net income applicable to common stockholders fell 19% to $3.1 billion from $3.8 billion and diluted earnings per share fell to $8.79 from $10.76 a year ago. 

Provision for credit losses was a net gain of $171 million for the first quarter,  compared with net provisions of $561 million for the first quarter of 2022 and $972  million for the fourth quarter of 2022. 

Lockheed Martin Corp rose 2.9% to $504.16 after the aerospace company and defense contractor reaffirmed its full-year outlook and posted better-than-expected quarterly results. 

Net sales in the first quarter increased to $15.1 billion from $15.0 billion and net income was flat at $1.7 billion and diluted earnings per share rose to $6.61 from $6.44 a year ago. 

The company paid $784 million in dividends and $500 million of its own shares in the first quarter. 

Johnson & Johnson decreased 2.4% to $161.72 after the pharmaceuticals and consumer products maker said first quarter revenue increased 5.6% to $24.75 billion. 

The company swung to a net loss of $68 million from a profit of $5.2 billion and diluted earnings per share of ($0.03) from $1.93 a year ago. 

Adjusted earnings, which excludes special items and amortization expenses,  fell 0.9% to $7.06 billion from $7.2 billion and adjusted diluted earnings per share of $2.68 from $2.67 a year ago.