Boeing Higher, GE Vernova Surges, Capital One Raises As They Missed Estimates

3 min

•Apr 22, 20266 days ago

Summary

The Stock Movers Report covers three major earnings stories: Boeing shares rise 3% after reporting better-than-expected cash burn and strong aircraft deliveries, GE Vernova surges 12% on massive EPS beat driven by AI data center demand, and Capital One shares remain flat despite missing earnings estimates with a significant spike in credit loss provisions.

Insights

Boeing's improved cash position and strong defense segment growth signal meaningful progress in its financial turnaround despite historical challenges
GE Vernova's exceptional performance reflects the substantial commercial opportunity in power infrastructure driven by AI and data center expansion
Capital One's elevated credit loss provisions suggest emerging stress in consumer credit markets, diverging from peer bank experiences and signaling potential economic headwinds
Middle East geopolitical stability remains a key monitoring point for Boeing's commercial operations and broader supply chain resilience
Data center buildout is creating outsized demand for electrical power equipment, benefiting specialized industrial suppliers with relevant product portfolios

Trends

AI and data center infrastructure driving demand surge for power equipment and electrification solutionsDefense and weapons systems orders accelerating as geopolitical tensions increaseConsumer credit stress emerging in lower-income segments despite broader economic stabilityAircraft delivery recovery continuing post-pandemic with commercial aviation demand normalizationDivergence in credit quality metrics across financial institutions suggesting sector-specific risk concentrationBacklog growth in industrial equipment indicating sustained forward demand visibilityGeopolitical risk (Middle East) becoming material factor in earnings guidance and operational planning

Topics

Boeing Cash Burn Rate and Financial Recovery Aircraft Delivery Growth and Commercial Aviation Recovery Defense and Weapons Systems Orders GE Vernova AI Data Center Demand Power Equipment and Electrification Infrastructure Capital One Credit Loss Provisions Consumer Credit Market Stress Bank Earnings and Peer Comparison Middle East Geopolitical Risk Industrial Equipment Order Backlogs EPS Beat Analysis and Valuation Financial Institution Risk Assessment

Companies

Boeing

Shares up 3% after reporting lower-than-expected cash burn of $1.5B vs $2.6B expected and strong aircraft deliveries

GE Vernova

Stock up 12% on massive EPS beat, benefiting from surging electricity demand tied to AI and data centers

Capital One

Shares flat after missing earnings estimates with credit loss provisions surging 70% to $4B above expectations

JPMorgan Chase

Peer bank mentioned for comparison on credit loss provisions, which were lower than Capital One's

Wells Fargo

Peer bank mentioned for comparison on credit loss provisions relative to Capital One

Citibank

Peer bank mentioned for comparison on credit loss provisions relative to Capital One

People

Paul Sweeney

Co-host of The Stock Movers Report providing market analysis and commentary

Scarlett Foom

Co-host of The Stock Movers Report providing market analysis and commentary

Tatiana Daria

Bloomberg analyst providing detailed earnings analysis on Boeing, GE Vernova, and Capital One

Quotes

"The cash burn rate was about $1.5 billion. That's a lot less than the $2.6 expected by analysts."

Tatiana Daria•Early in episode

"That tells you how much it is benefiting from the surging electricity demand tied to AI and data centers."

Tatiana Daria•GE Vernova segment

"The CEO also saying that the conflict in the Middle East presents a significant cloud on the horizon."

Tatiana Daria•Capital One segment

Full Transcript

Equity indices made by committees? That's the old way. The new way is Bloomberg Equity Indices. Transparent indices built on data, not opinions. Discover evolved benchmarks for today's equity markets at Bloomberg.com slash equity index subscriptions. Bloomberg Audio Studios. Podcasts, radio, news. The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data. Let's take a look at some of the stocks on The Move today. I'm Paul Sweeney alongside Scarlett Foom. We're joined by Bloomberg's Tatiana Daria. Tatiana, what are you looking at today? Well, it is earnings season after all. So kicking it off with the Boeing shares up about 3% after reporting lower than expected cash outflows in the first quarter as they delivered the most aircraft since 2019. So the cash burn rate was about $1.5 billion. That's a lot less than the $2.6 expected by analysts. Really nice growth there in their commercial aircraft deliveries pushed up revenue by 14 percent. Also, Defense and Space Unit reported a nice 21 percent increase. The CEO saying that we should expect more orders for weapons system. This is all part of their efforts to ramp up output of their 737 family as they try to turn around their finances. Curiously, what stood out to me is they say Middle East deliveries are not impacted just yet. So that was notable. and shares are responding to that positively so far. All right. So from one industrial to another, I guess, kind of industrial, GE Vernova. Once upon a time, it was part of GE overall. But now it is just the electrical power equipment company. What did it say? Yeah, with a lot more momentum, the stock is up about 12%. The ticker is GEV, hitting a fresh record high earlier. A massive beat from this power equipment company for the first quarter For EPS The expectation was for less than a dollar So imagine the beat rate here That tells you how much it is benefiting from the surging electricity demand tied to AI and data centers. They have robust equipment order growth and its power and electrification segment. That is actually the one that is directly related to data centers. And they're saying their backlog keeps growing, which tells you, you know, There's a lot more demand for their products as it relates to the data center build out. And the stock's been doing very well, up 70% year to day. All right, very good. One more here. What do you got? Capital One shares, slightly down lower. I mean, we'll call it unchanged at this point. The credit card lender reported earnings that missed consensus estimate. And what caught my attention was actually the provision for credit losses, which surged 70% to $4 billion above expectations. And I just took a look at peers, right? JP Morgan, Wells Fargo, Citibank. Those guys had the number was a lot lower for them. So this stands out as one of the banks reporting, you know, some of the largest provisions out there, which is interesting given that they're exposed to the lower credit consumer. The CEO also saying that the conflict in the Middle East presents a significant cloud on the horizon. So some of those cracks are still showing in earnings. The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business App. Indices built to someone else's specification? That's the old way. The new way is Bloomberg Equity Indices. Design custom benchmarks and distribute them at speed. Discover evolved benchmarks for today's equity markets at Bloomberg.com slash equity index licensing.