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Financial Sector Update for 07/30/2020: BBVA,WEX,MMC

Financial stocks were sinking after data Thursday showed the US economy contracted 32.9% on an annualized basis during Q2, with the NYSE Financial Index dropping 1.9% while the SPDR Financial Select Sector ETF was off 1.6%.

The Philadelphia Housing Index was falling 0.4%.

In company news, Banco Bilbao Vizcaya Argentaria (BBVA) fell 7.8% after the lender Thursday reported Q2 net income of EUR0.08 per share, more than halving its EUR0.17 per share profit during the year-ago period and trailing the Capital IQ consensus by EUR0.01 per share. Total revenue dropped 5.7% year-over-year to EUR5.56 billion, also narrowly lagging the EUR5.57 billion analyst mean.

WEX (WEX) slid 6.2% on Thursday after reporting lower non-GAAP net income compared with year-ago levels, missing Wall Street estimates, and upstaging the fintech company also announcing a multi-year contract with a new customer and a current client renewing its contract. Adjusted EPS was $1.21, down from $2.28 last year and lagging the Capital IQ consensus expecting $1.38.

Marsh & McLennan Companies (MMC) was scratching out a narrow gain after reporting improved Q2 financial results, earning an adjusted $1.32 per share during the three months ended June 30 on $4.19 billion in revenue. Analysts, on average, had been expecting the insurance and risk management firm to earn $1.13 per share on a non-GAAP basis on $4.18 billion in revenue.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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