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Mastercard profits beat estimates despite steady transaction volume
Mastercard's first-quarter profits surpassed Wall Street expectations on Thursday as resilient consumer spending supported its sustained transaction volume. The spending has mostly?held steady despite the economic uncertainty caused by the?Iran war and U.S. Tariffs. Consumer confidence has also waned due to a slowing labor market. The majority of spending comes from wealthy households, who are continuing to spend on discretionary items. Lower-income families cut back on non-essentials. Experts have been highlighting this bifurcation, as the "K-shaped economy" continues to drive consumer trends and cushion industries like travel and entertainment. Wall Street executives and other experts say that while the trends are largely stable, increased gasoline prices due to the war may start to 'pull spending away from different categories. Mastercard reported an 7% increase in gross dollar volume, which is the value of all transactions that are processed through its platform. Net revenue increased by 16% in the first quarter to $8.4 Billion. Peer American Express, which is known for having affluent customers, exceeded expectations in the first quarter last week. Visa also beat the quarterly profit estimates, aided by resilient consumer spending. Payment processors are the first to know about consumer spending, thanks to their large market share and ability to facilitate transactions across their networks. Most of the "big U.S." lenders reported an increase in consumer loan balances earlier this month. This indicates that borrowing is continuing despite macroeconomic pressures which typically cause caution. Cross-border volume is a measure of spending on prepaid cards outside the country in which they were issued. It has risen 13% despite the Middle East airspace closures that disrupted major flight routes and forced thousands to cancel flights. According to data compiled and analyzed by LSEG, Mastercard's adjusted profits per share were $4.6. This was above the average analyst estimate of $4.4.
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Investors assess Iran tensions as gold climbs from a one-month low; dollar eases.
Gold prices jumped Thursday as the dollar eased, and oil prices fell. Some analysts also cited an increase in demand for safe-haven assets due to growing fears that the U.S. - Iran war could escalate. As of 1158 GMT spot gold rose 1.9%, to $4,629.83 an ounce, after dropping to its lowest level since March 31, in the previous session. Bullion has fallen by about 0.9% this month. U.S. Gold Futures for June Delivery rose by 1.8% to $4642.90. Dollar fell sharply against yen after Bank of Japan officials gave firm signals about possible intervention to help the Japanese currency. The dollar's weakness makes the greenback price of bullion more affordable to holders of other currencies. Gold is recovering because of the uncertainty that exists in the Middle East. The strength of this recovery at the moment also suggests that the price has found a temporary bottom, according to independent analyst Ross Norman. According to a report by Axios, Donald Trump will receive a briefing Thursday about plans for a number of military strikes against Iran. Brent prices reached four-year highs due to fears of an escalation before turning negative. Since the beginning of the conflict, gold has fallen by about 12%. The metal, although viewed as a safe haven in times of uncertainty, has been impacted by rising energy costs and fears of inflation. Some analysts believe that the demand for safe havens could increase. "Gold has behaved a bit more like we would expect. It should rise in times of geopolitical dangers, and that risk is the?speculation the U.S. may be preparing for the next?escalation," says Nitesh Sha, commodity strategist at WisdomTree. The U.S. Federal Reserve chair Jerome Powell ended his eight-year tenure on Wednesday by?holding interest rates. The markets are now awaiting the?Personal Consumer Expenditures for March data, which is due at 1230 GMT. Silver spot rose by 2.9%, to $73.57 an ounce. Platinum gained 4.1%, to $1,955.70. Palladium increased 2.2%, to $1,490.36. All three metals are on course for a second consecutive monthly decline. (Reporting from Pablo Sinha, Bengaluru. Editing by Shailesh Kuber and Mrigank Dahniwala.)
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Southern Co's profits beat expectations in the first quarter as demand for power soars
Southern Co beat analyst's expectations for the?first quarter profit on Thursday. According to the Energy Information Administration (EIA), U.S. power consumption is expected to increase this year due to increasing demand from data centers that are dedicated to AI, cryptocurrency and homes and businesses using more electricity for heating and transportation. Kilowatt-hours sold in the commercial sector for the third quarter increased by?4.2% while those in the industrial segment saw a 1.5% rise. Southern Co is the second largest utility in the United States, with?9 millions customers. It serves the states of Alabama Georgia Illinois Mississippi Tennessee and Virginia. In 'February, the utility said it had contracted with 10 gigawatts from large load customers including Google, Meta, Microsoft, and Compass Datacenters across all of its service areas. The?first quarter revenue increased by nearly 8%, to $8.4 Billion. Operating expenses rose?more? than 10%. The Atlanta-based utility posted a profit adjusted of $1.32 for the three months ending March 31. According to data compiled from LSEG, analysts on average estimated $1.21 a share. Reporting by Pranav Mathur in Bengaluru, editing by Shilpa Majumdar
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Molson Coors exceeds its quarterly expectations on premium beer and price increases
Molson Coors beat analyst's expectations for the first quarter sales and profit on Thursday, thanks to price increases and increased demand, particularly in Americas. The brewer's shares rose by 2% just before the bell despite a global macroeconomic climate that is uncertain and a rising inflation rate. Coors Light, Miller Lite and other beers have raised their prices in order to cushion the effect of rising raw materials costs, such as aluminum, and?to buffer against softer demand. The brewer is pushing premium products such as Blue Moon Belgian White, Peroni Nastro Azzurro and expanding into categories that are growing faster - including ready-to drink flavored cocktails. Analysts' expectations of $2.33 billion were exceeded by 2% as net sales increased to $2.35billion for the quarter ending March 31. LSEG data shows that underlying earnings per share grew 24%, to 62 cents. This was largely due to cost?controls. The results easily beat the 37 cents estimate. The total volume fell by nearly 3%, as the U.S. market and European markets were affected by stiff competition and weak demand. Consumers are still cautious due to persistent inflation. The executives were cautious in their approach to?demand and cost. Rahul Goyal, the chief executive of the company, said that it was operating in an "external environment dynamic with limited visibility near-term." The company also said that Molson Coors is also dealing with rising input costs, namely aluminum surcharge. This amounted to an additional $30 million in costs for the third quarter. It expects that?net sales will range from a decline of?1% up to a growth of 1% compared to last year, and that adjusted earnings per share will fall between 11% and 15%. The company also warned that U.S. volume in the?second quarter is likely to fall 6% to 10% year-on-year. Cost pressures will peak mid-year and then ease in the second half. (Reporting from SavyataMishra, Bengaluru. Editing by MajuSamu)
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Xcel Energy barely beats profit expectations on higher electricity sales
U.S. utility Xcel Energy narrowly beat the adjusted 'profit estimates' for the first quarter as stronger sales and higher recoupment of electric infrastructure investments helped 'offset warmer weather?and increased financing costs. In response to the growing demand for electricity as 'Big Tech' firms build more data centers in order to support AI, cloud computing, and other services, power providers are investing heavily to upgrade their transmission and generation infrastructure. In February, Xcel signed an agreement with Google to power a 'new data center' in Minnesota. Xcel has said that it submitted a request to the Minnesota?regulators for approval of this agreement in April. This included a proposed fee tied to 1,900 Megawatts?of?clean energy resources. Minneapolis-based company reported revenue of $4.02 billion in the quarter ended March 31 compared to $3.91 billion one year earlier. The operating revenue of its electric segment increased 5%, to $2.98 Billion. Natural gas revenue decreased 2.4%, to $1.03 Billion from the previous year. Interest rates that are higher for longer can put pressure on utilities, by increasing the cost of maintaining and constructing infrastructure like electrical grids. Xcel's operating costs rose by 1.2%, to $3.27 Billion, and total interest and financing costs grew 20.4%, to $372 Million, largely because of higher interest rates and debt levels. Analysts had expected a profit per share of 90 cents. The company's adjusted profit for the three-month period ended March 31 was 91 cents. The company reaffirmed that it will continue to earn between $4.04 and $4.16 per share in 2026. Xcel offers electric service to?about 3.9 millions customers, and natural gas to?about 2.2 million in eight Western and Midwestern States. (Reporting and editing by Shailesh Kuber in Bengaluru)
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Bombardier exceeds its quarterly profit forecasts on the strength of demand for maintenance services
Bombardier, a Canadian jet manufacturer, beat Wall Street's expectations for the first quarter profit. This was due to a robust demand for "repair and maintainance services" as well as an extra?"plane delivery" compared with last year. The strong demand in the U.S. for parts and maintenance on its growing global jet fleet led to a 25% increase in revenue. The private aviation industry has generally remained resilient, despite the soaring jet fuel prices due to Middle East conflict. In a press release, CEO Eric Martel stated that the plane maker had generated $360 in free cash flow during the first quarter. This was its highest level for a quarter in almost two decades. The $360 million in free cash flow was a significant increase from the $304 millions used during the previous quarter. Bombardier has raised its outlook for free cash flow in 2026 to more than 1 billion dollars, up from an earlier range of $600 to $1 billion. The company has reiterated its plans to deliver over 157 aircraft this year. Bombardier has received new orders for the Global 8000 ultra long-range business jet, which it recently certified. This is due to the sustained?demand of private flying while it ramped up production. The Montreal-based company delivered 24 aircraft in the first quarter of this year, an increase of one over the same period the previous year. According to LSEG, Bombardier's adjusted earnings per share were $1.81 in the first quarter. This compares with an average analyst estimate of 77c. The company's quarterly revenue was $1.6 billion - a rise of 5% on the previous year, but slightly lower than expected at $1.64 billion. Reporting by Allison Lampert from Montreal and Aatreyee dasgupta from Bengaluru. Editing by Leroy Leo.
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Baosteel China will review its investment in Saudi Arabia due to the uncertainty caused by the Iran war
Baoshan Iron & Steel Co, 'China's largest listed steelmaker said it would reevaluate a?investment into a steel joint venture? in Saudi Arabia. Baosteel and Saudi Aramco signed agreements to create a joint venture for the production of steel plates in Saudi Arabia in 2024. Baosteel will hold 50% of the joint venture, while Saudi Aramco (25%) and PIF (25%) each take 25%. At a recent earnings briefing, Baosteel chairman Zou Jixin said: "Given the current situation, we have become more cautious about our investment...we have already recalled 13 of the employees who were sent to Saudi Arabia earlier." Conflict began late in February when U.S. and Israeli strikes were launched on?Iran. It has affected neighbouring countries. The conflict has increased logistics costs and led to an accumulating?inventory, as cargo unloading has become difficult in some ports. However, the overall impact for Baosteel, according to Zou, is manageable. Baosteel, despite growing geopolitical uncertainty, aims to export ten million metric tonnes of steel products by 2026. This is due to a growing demand for its products overseas. Shao Linfeng said that the target included 6.83 million tonnes from Baosteel’s four production bases, and 2.17 millions tons from two of its subsidiaries. According to Zou's forecast, China's crude output is expected to reach 940 million tonnes in 2026. This is down from a?seven year low of 960.81 millions tons last year. Zou said that the manufacturing sector's share in steel consumption would rise from 51% in 2025 to 58% by 2026. Baosteel, which has 80 million tons of steel production capacity, does not have plans to consolidate in the near future. Baosteel announced a 8.6% drop in annual net profit for its first quarter, due to higher feedstock costs related to the Iran War and weak domestic demand. Reporting by Amy Lv, Lewis Jackson and Elaine Hardcastle; Editing by Muralikumar Aantharaman and Elaine Hardcastle
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Valero Energy exceeds profit expectations on the strength of refining performance
?U.S. Valero Energy, a refiner, surpassed Wall Street's expectations for the first quarter adjusted profit on Friday, thanks to its refining segment and margins, as well as throughput volume. The first quarter saw a sharp rise in diesel and jet fuel margins after U.S. and Israeli attacks on Iran disrupted Middle Eastern supplies, driving finished fuel prices higher than crude oil costs. This increased profit margins at refiners. By expanding sales overseas, U.S. refiners can benefit from global fuel shortages. Gulf Coast hub. The 3-2-1 crack spread is a measure of the quarterly U.S. refinery profit margins. In the first quarter, sales were up 73% on average compared to a year ago. Valero announced that it is advancing its FCC Unit Optimization Project at the St. Charles Refinery, which?will allow the refinery increase its yield of high-value products. The project will cost approximately $230 million, and operations are expected to begin in the third quarter. Refining reported earnings of $1.8billion, up from a loss $530m a year ago. The?refining profit per barrel was $14.90, up from $9.78 in the same quarter last year, and the average volume of barrels throughput rose by?3.6%, to 2.9 millions barrels per day. Valero reported a $139 million operating income from renewable diesel, compared to a $141 million loss last year. Operating?income at the ethanol segment increased to $90 millions from $20 million one year ago. Phillips 66, a rival company, posted a surprising first quarter profit Wednesday. This was due to higher refining and capacity utilization margins. According to data compiled and analyzed by LSEG, Valero, based in San Antonio, Texas, reported an adjusted profit per share of $4.22 for the three-month period ended March 31. This compares with analyst expectations of $3.16.
MORNING BID AMERICA-Oil fears shroud tech splurge
What's important in the U.S. and international markets today by Mike Dolan, Editor at Large,?Finance and Markets
The markets can't ignore the new surge in oil prices due to the Iran war. The global crude oil prices rose to their highest levels since the beginning of the war amid reports that Washington is considering a return to military action in order to break the impasse. The price of the June Brent futures contract hit a four-year high of $126 per barrel on the last day, and the new benchmark for July surged up to $115/bbl, before falling back. The Fed's Wednesday hawkish stance was largely influenced by the fuel price squeeze.
Below, I'll go into more detail. Check out my most recent column about the signs that U.S. Inflation is on the rise. Listen to the Morning Bid podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a week.
OIL FEAR SHROUDS THE TECH SPLURGE On Wednesday, the Fed kept rates the same. However, three regional presidents voted in favor of removing references to "easing bias" from its statement. Jerome Powell, the outgoing chair of the Fed, surprised many when he announced that he would stay on in a board position - at least temporarily - once his chairmanship ended next month.
Powell's tenure on the board will last until the early part of 2028. This means that there won't be a vacancy in the board immediately for President Trump. Futures markets have eliminated all bets that the Fed will ease this year. There is a 1 in 3 chance of a rate increase by April next year. Treasury yields have risen again. The 30-year yield briefly topped 5% for the firs time since September. The dollar briefly jumped, but was knocked back below 160 yen due to Japanese intervention fears.
Today, the European Central Bank (ECB) and Bank of England (BoE) will announce their rates. Both are expected to hold policy, but also warn of inflationary pressures related to oil. Meanwhile, after the Wednesday bell, mega-cap earnings swept in. Alphabet's share price soared by more than 6 percent on the back of its impressive cloud business and its beating. Meta, however, fell more than 6 percent as investors worried about its recent capex boost. Share price reactions were subdued to Microsoft and Amazon's results, but there was no major red or green flag in the massive AI buildout. The spending by the "hyperscalers" this year will likely top $700 billion.
The bill may be justified, or it may not. But the demand for AI equipment and chips will continue to rise for the time being while the final outcome of the massive capex is still being assessed. Finaly, Asian shares dropped?on Thursday's renewed oil surge, while European stocks opened lower and Wall Street Futures were mixed.
Chart of the Day South Korean tech giant Samsung Electronics announced record quarterly profits driven by a?jump of 49-fold in chip income. It said it expects supply shortages to worsen next year, as clients invest more on AI. The results come just a day after U.S. megacaps Microsoft Alphabet Amazon and Meta revealed that their 2026 capex plans have now topped $700 billion.
Watch today's events
* U.S. PCE inflation data for March (8:30 am EDT), and weekly jobless claims (8:30 am EDT).
Apple's earnings in the U.S.
Bank of England rate decision (7:15 am EDT) & European Central Bank rate announcement (8:15 am EST). EDT)
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(source: Reuters)