Tesla, Netflix, General Motors, Ford, and P&G to headline third quarter earnings calendar this week

Ally Financial (ALLY), a digital bank and auto financing company, said it’s not seeing significant deterioration in its subprime lending business.

“We’re observing consumer behaviors that are honestly better than our expectations,” Ally CEO Michael Rhodes said on the company’s third quarter earnings call. “And I appreciate there’s a lot of macro uncertainty in the environment, but we’re not seeing that impact our credit performance.”

In Q3, Ally reported earnings per share of $1.18, topping estimates for $0.96 per share, according to S&P Global Intelligence. Revenue of $2.17 billion also surpassed expectations for $2.10 billion.

The lender received a record 4 million auto financing applications during the quarter. Its auto net charge-off rate — or debt the company is owed that is unlikely to be repaid — fell by 36 basis points year over year to 1.88%, below the 2.24% charge-off rate in Q3 2024.

Listen to a replay of the earnings call here.

Truist (TFC) stock rose 1.5% in premarket trading as the Charlotte, N.C.-based bank recorded a rise in third quarter profit on Friday.

Net income rose to $1.3 billion, representing $1.04 per diluted share, which exceeded Wall Street analyst estimates of $0.99 per share. Noninterest income increased 11% to $158 million, versus the second quarter, due to greater activity in investment banking, trading, and wealth management.

The bank said it saw broad-based loan growth during the quarter, while average deposits decreased 1%.

It also noted that loans that were 90 days or more past due rose by 1 basis point quarter over quarter, totaling $584 million at the end of September. In general, regional bank earnings eased some of the market’s concerns about credit stress on Friday after Zions (ZION) and Western Alliance (WAL) alleged fraud on some of their loans.

Comerica (CMA) stock fell slightly in premarket trading, as the bank reported generally steady operations but a decline in noninterest income ahead of its takeover by Fifth Third.

Net interest income grew over 7% to $574 million in the third quarter. Loans remained relatively stable at $50.8 billion, while deposits increased $1.5 billion to $62.7 billion. Noninterest income dipped to $264 million as capital markets income slowed.

At the end of September, provisions for credit losses totaled $725 million. On credit quality, Comerica CEO Curtis Farmer noted a slightly improved economic forecast.

“Our proven credit discipline and prudent underwriting continued to deliver results with net charge-offs of 25 basis points, still within the low end of our normal range,” Farmer said. “Economic conditions modestly improved and migration remained manageable, driving a slight decline in our allowance for credit reserves to 1.43% of total loans.”

On Oct. 6, Comerica announced it had entered an agreement to be acquired by Fifth Third Bank (FITB). You can view that bank’s results in the blog post below.

Ohio-based regional bank Fifth Third (FITB) reported earnings that exceeded expectations on Friday as investors became jittery over the credit health of smaller banks.

Fifth Third’s net interest income hit $1.52 billion in Q3, a 7% increase year over year. Earnings per share grew 17% annually to $0.91, beating estimates of $0.86.

The bank’s provisions for loan losses increased 23% year over year to $197 million.

“Total average portfolio loans and leases of $123 billion remained stable compared to the prior quarter,” the company said. “Average commercial portfolio loans and leases of $75 billion decreased 1%, due to declines in commercial mortgage and commercial construction loans, partially offset by increases in C&I middle market loans. Average consumer portfolio loans of $48 billion increased 2%, driven by continued strong growth in indirect secured consumer and home equity loans.”

Interactive Brokers (IBKR) stock climbed 1% after the company reported a boost in client trading volume and robust third quarter earnings.

The electronic brokerage stated that its customer accounts increased 32% to 4.13 million, which led to growth in overall trading volume during the quarter. Positive overall market sentiment helped boost trading as well, as investors bought dips and participated in rallies, the company said in its Q3 earnings call.

In total, commission revenue increased 23% year over year to $537 million during the quarter, while net interest income rose 21% to $967 million.

Earnings per share of $0.59 topped Wall Street analysts’ estimates for earnings of $0.53 per share. Revenue was also well above expectations, with the quarter’s $1.65 billion exceeding estimates of $1.52 billion.

Listen to the earnings call live here.

CSX (CSX) reported better-than-expected profits and revenue for the third quarter, as declines in coal prices and merchandise volume were partially offset by intermodal volume growth and higher prices in other merchandise.

The Jacksonville, Fla.-based freight railroad operator posted earnings per share of $0.44, compared to analysts’ expectations for $0.42 per share, according to S&P Global Market Intelligence.

Revenue declined 1% year over year to $3.59 billion for the quarter, although the metric still exceeded expectations of $3.57 billion.

Volume totaled 1.61 million units for the quarter, up 1% annually, though the operating margin shrank to 30.3% from 37.4% in the same period a year ago.

CSX stock rose 3% in after-hours trading

U.S. Bancorp (USB) reported net income of $2.00 billion, or $1.22 a share, in the third quarter, beating Wall Street estimates of $1.89 billion and rising from $1.72 billion in the same period last year.

Revenue reached a record $7.3 billion, ahead of estimates for $7.1 billion, according to S&P Global Market Intelligence, while net interest income rose 2% to $4.25 billion.

Provisions for credit losses reached $571 million in Q3, a 2.5% increase from $557 million in Q3 2024.

US Bancorp stock advanced 1.5% ahead of the opening bell.

Charles Schwab (SCHW) stock rose 4% in premarket trading after the financial services company reported earnings of $1.26 per share, beating Wall Street estimates by a penny.

Third quarter revenue also came in better than expected at a record $6.13 billion, a 27% increase year over year.

A dealmaking boom and stock market enthusiasm boosted the other major financial institutions that reported results earlier this week. At Charles Schwab, total client assets increased 17% year over year to a record $11.59 trillion, and net interest margin expanded by 21 basis points to 2.86%.

According to the company, a reduction in higher-cost liabilities, strong securities lending activity, and increased lending by clients helped boost net interest margins.

“Our unwavering focus on delivering for clients helped us attract $137.5 billion in 3Q core net new assets plus over 1 million new brokerage accounts for the fourth straight quarter,” CEO Rick Wurster said in the release.

Taiwan Semiconductor Manufacturing Co. (TSM) stock rose about 2% in premarket trading after the world’s biggest leading-edge chipmaker reported that profits surged 39% year over year in the third quarter.

What’s more, TSMC raised its revenue outlook for 2025 for the second time this year, as the chipmaker benefits from companies spending on artificial intelligence. TSMC sees mid-30% annual sales growth.

TSMC revenue beat estimates, coming in at 989.92 billion New Taiwan dollars (approximately $32.2 billion USD), compared to NT$967,146 estimated. Earnings per share of NT$17.44 (US$2.92 per ADR unit) also beat estimates of $2.60 per ADR unit.

Apple (AAPL), Nvidia (NVDA), and AMD (AMD) count among TSMC’s customers.

“Our business in the third quarter was supported by strong demand for our leading-edge process technologies,” TSMC CFO Wendell Huang said. “Moving into fourth quarter 2025, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”

Yahoo Finance’s Pras Subramanian reports:

Read more here.

Progressive (PGR) stock tumbled over 6% as of midday trading on Wednesday after the company’s earnings missed analyst expectations.

The insurance giant reported profits of $4.44 per share, underperforming Wall Street estimates for earnings of $5.30 per share. Revenue also fell short, with $21.3 billion reported versus the estimated $21.6 billion. Net income dropped 48% year over year.

Progressive experienced a $950 million expense in September due to a 2023 policy change in Florida that limits profits made on auto insurance.

“Despite actions to lower rates in the last year, it is probable that our personal auto profit in Florida for the 2023 to 2025 period will exceed the statutory profit limit that a Florida statute imposes…,” the company said. “In such event, we would need to credit any profit above the limit to all Florida personal auto policyholders active at December 31, 2025.”

Several regional bank stocks fell on Wednesday afternoon after the companies reported third quarter earnings and a stable

Shares of Citizens Financial Group (CFG) dropped 1%, while PNC (PNC) fell more than 3%. Memphis-based First Horizon (FHN) led the declines, with the stock dropping over 10%. First Horizon reported that deposits declined by $52 million year over year.

Pittsburgh-based PNC beat earnings estimates by $0.31, with profits per share of $4.35 compared to the Street’s expectations for earnings per share of $4.04, per S&P Global Market Intelligence. The regional bank reported that it expects net interest income to rise 1.5% in the fourth quarter but anticipates fee income will fall about 3%.

The stock reaction in regional banks juxtaposed the strength in the large Wall Street banks’ results and their stocks’ move higher. Bank of America (BAC) and Morgan Stanley (MS) shares were up 3% and 5%, respectively, on the back of a dealmaking boom and robust trading activity.

Additional regional banks, Fifth Third (FITB) and Comerica (CMA), will report earnings on Friday, providing investors with further clues about the state of household balance sheets. First Horizon CEO Bryan Jordan noted that the US economy, in the bank’s view, “continues to perform reasonably well.”

Third quarter profits at Morgan Stanley (MS) surged 45% as another Wall Street bank saw a robust quarter and benefited from a trading and dealmaking boom.

Morgan Stanley CEO Ted Pick called his bank’s quarter “outstanding” in an earnings statement. Morgan Stanley stock climbed nearly 4% in premarket trading.

Dealmaking fees at Morgan Stanley surged 44% from a year ago to $2.1 billion, Yahoo Finance’s David Hollerith reports. The bank advised on the Union Pacific-Norfolk Southern megadeal and co-facilitated the Keurig Dr Pepper (KDP) $18 billion acquisition of JDE Peet’s (JDEP.AS).

Trading also did well, with fees from the firm’s client trading division soaring 24%, driven by its stock transactions group. Morgan Stanley’s combined equity, fixed income, currency, and commodity trading for clients ballooned to $6.28 billion.

Read more here.

Shares of pharmaceutical and medical device maker Abbott (ABT) fell 1% in premarket trading on Wednesday after earnings came in a tad light.

The company reported diluted earnings per share of $0.94; the Street was looking for $1.04, according to S&P Global Market Intelligence. Revenue of $11.3 billion was roughly in line with Wall Street’s estimates.

Sales in Abbott’s Nutrition segment rose 4.2%, propped up by 13.3% growth internationally. In the US, Nutrition sales fell 6.5%. Abbott makes products such as Pedialyte and Ensure.

Its Diagnostics sales declined by 6.6% year over year, while sales of Established Pharmaceuticals, which are only sold internationally, rose 7.5%. Medical Device sales saw the greatest amount of growth, increasing by 14.8%.

Yahoo Finance’s David Hollerith reports:

Read more here.

LVMH (MC.PA, LVMUY) unexpectedly reported a return to sales growth in its third quarter earnings, a sign the decline in luxury demand is easing.

Paris-listed shares of the owner of Louis Vuitton and Christian Dior rose as much as 14% — the biggest intraday gain since 2001 — while its US-listed stock jumped around 9% in premarket.

Reuters reports:

Read more here.

ASML’s (ASML, ASML.AS) orders topped estimates in the third quarter amid an AI investment boom, and the Dutch maker of chipmaking equipment said it expects to keep benefiting.

Shares rose over 3% in premarket trading even after ASML also warned it expects Chinese demand to drop significantly next year,

Reuters reports:

Read more here.

Citigroup (C) stock rose just under 1% on Tuesday morning as Wall Street banks benefited from dealmaking, mergers, and IPOs in the third quarter.

Dealmaking fees at Citi jumped 17%, and traders in equities and fixed income generated $5.6 billion — 15% more than a year earlier, Yahoo Finance’s David Hollerith reported.

Meanwhile, Citi’s total revenue grew 9% as all of its divisions set records for the quarter. Its net income for the third quarter was $3.8 billion, or $1.86 per diluted share, on revenue of $22.1 billion. A year ago, the bank reported net income of $3.2 billion, or $1.51 per diluted share, on revenue of $20.2 billion.

“The cumulative effect of what we have done over the past years — our transformation, our refreshed strategy, our simplification — have put Citi in a materially different place in terms of our ability to compete,” Citi CEO Jane Fraser said in a statement. “Investments in new products, digital assets and AI are driving innovation and improved capabilities across the franchise.”