Earnings Recap - July 15, 2026 (Morning)

 ## Overnight Earnings Movers Companies that reported after yesterday's close or before today's open: ### Beats & Positive Reactions **$BAC** - Bank of America reported stronger-than-expected Q2 earnings, prompting multiple analysts to raise price targets, including Truist Securities to $65, Keefe, Bruyette & Woods to $70, and Barclays to $72. The upbeat results reflect robust capital markets activity and solid revenue growth, reinforcing positive sentiment around the banking sector amid a buoyant financial environment. **$J&J** - Johnson & Johnson beat earnings estimates by $0.04 and topped revenue expectations, driven by strength in its medicines unit. Despite the beat, shares dipped slightly, possibly due to cautious forward guidance or profit-taking after a strong run. **$CINTAS** - Cintas posted an earnings beat by $0.05 with revenue surpassing estimates, signaling continued operational strength in its business services segment. The positive surprise supports confidence in steady demand for its uniform and facility services. **$ASML** - ASML delivered a strong Q2 beat with earnings exceeding estimates by $1.67 and revenue topping forecasts. The company raised its full-year outlook, citing robust demand for advanced chipmaking equipment fueled by AI growth, which boosted the stock. **$RICHEMONT** - Cartier-owner Richemont reported Q1 sales beating forecasts, driven by strong demand in the Americas and Asia luxury markets, supporting the luxury sector's recovery narrative. **$MORGAN STANLEY** - Morgan Stanley’s Q2 profit soared 58% on a trading rally, with shares gaining as equities trading and dealmaking fueled the earnings beat. This underscores the strength of Wall Street’s capital markets businesses in the current environment. ### Misses & Negative Reactions **$PROGRESSIVE** - Progressive beat Q2 profit estimates but shares fell 4% premarket, possibly reflecting concerns about underwriting margins or cautious commentary on competitive pressures in the insurance market. **$TOMTOM** - TomTom reported improved Q2 profit as lower expenses offset weaker revenue, but the stock dropped 14%, likely due to revenue shortfalls or cautious outlook amid competitive challenges in navigation and mapping services. **$CDON** - CDON posted a Q2 loss with growth investments weighing on margins, leading to a premarket share decline. The miss highlights challenges in scaling e-commerce operations profitably. **$LOOP INDUSTRIES** - Loop Industries missed earnings by $0.02 and revenue fell short of estimates, reflecting ongoing execution challenges in its sustainable materials business. **$IBM** - IBM’s stock plunged after issuing a warning on the software sector, signaling concerns about AI-related spending and broader tech demand softness. This highlights the risks tech companies face despite AI enthusiasm. ## Reporting Today Companies expected to report earnings today: - **$ERIC** - Ericsson - Q2 earnings call expected; key metrics to watch include revenue growth and margin expansion amid 5G deployment. - **$AEHR** - Aehr Test Systems - Q4 2026 earnings call; watch for revenue trends and guidance in semiconductor test equipment. - **$KES** - Kestra Medical - Q4 2026 earnings call; focus on profitability and contract wins. - **$DUNI** - Duni AB - Q2 2026 results; margins and revenue growth amid market challenges. - **$AXFOY** - Axfood AB - Q2 2026 earnings call; revenue and profit trends amid deflationary food prices. - **$PNDXF** - Pandox AB - Q2 2026 earnings call; watch for property earnings and derivative impacts. - **$CSMHF** - Coor Service Management Holding AB - Q2 2026 earnings call; margin gains versus revenue declines. - **$SFFLY** - Schaeffler AG - Shareholder call; focus on automotive sector recovery and margin outlook. - **$CDOAF** - CDON AB - Q2 2026 earnings call; monitor growth investments and margin pressures. - **$TMOAY** - TomTom N.V. - Q2 2026 earnings call; revenue and profit dynamics. - **$ENEKF** - Enea AB - Q2 2026 earnings call; sales and margin performance. - **$PNDXF** - Pandox AB - Q2 2026 earnings call; property earnings and derivative losses. - **$CWQXY** - Castellum AB - Q2 2026 earnings call; property earnings and asset sales impact. - **$SLOFF** - Solstad Offshore ASA - Q2 2026 earnings call; EBITDA growth and backlog strength. - **$CAHPF** - Evolution Mining Limited - Q4 2026 earnings call; cash flow and operational metrics. - **$AEHR** - Aehr Test Systems - Q4 2026 earnings call; semiconductor test equipment trends. - **$KMTS** - Kestra Medical - Q4 2026 earnings call; contract updates and profitability. - **$ENEKF** - Enea AB - Q2 2026 earnings call; sales and margin trends. - **$DIB** - Dubai Islamic Bank - Q2 profit forecasts; watch provisions and earnings growth. Light earnings calendar today for major U.S. tech giants; focus remains on financials, industrials, and European companies. ## Earnings Themes - **Revenue Trends:** Many companies, especially in financials and luxury goods, are reporting revenue beats or stable growth despite macro uncertainties. ASML and Richemont highlight strong demand in AI-driven semiconductor equipment and luxury markets, respectively. However, some tech and e-commerce players face revenue headwinds or slower growth. - **Margin Pressures or Expansion:** Margin expansion is evident in companies like Cintas and Coor Service Management, while others like CDON and Loop Industries face margin compression due to growth investments or operational challenges. Inflation and cost control remain key factors influencing profitability. - **Guidance Sentiment:** Mixed signals on guidance. ASML raised its full-year outlook on AI demand, while Conagra Brands lowered FY27 adjusted EPS guidance to $1.40-$1.50 from $1.59 estimates, citing cautious organic sales expectations and margin pressures. Bank of America’s strong Q2 results have led to analyst upgrades, reflecting optimism in banking earnings momentum. ## Earnings Trade Ideas 1. **Bank of America ($BAC)** - With multiple analyst upgrades and raised price targets following a strong Q2 beat, BAC remains a compelling play on resilient banking earnings and improving capital markets conditions. Investors could consider positioning ahead of further sector momentum. 2. **ASML ($ASML)** - The company’s robust Q2 beat and raised guidance driven by AI chip demand make it a strong candidate for exposure to the semiconductor equipment cycle. The AI-driven capex boom supports upside potential, especially as ASML expands capacity. 3. **Cintas ($CINTAS)** - Solid earnings beat and revenue growth in a defensive business services segment suggest Cintas could benefit from steady demand and margin expansion, making it a potential stable earnings growth play amid mixed market conditions. Monitor companies reporting today like Ericsson and Aehr Test Systems for insights into industrial and semiconductor equipment trends, which could provide early signals on sector momentum.