Equity Briefing: ASOS, TSMC and US banks
Joshua Warner July 15, 2021 6:22 AM
Online fashion retailer ASOS is scheduled to release a trading update this morning, semiconductor firm TSMC will publish second-quarter results, and Morgan Stanley, US Bancorp and the Bank of NY Mellon round-off the earnings season for US banks later today.
Want the latest news to come to you?
You can get the latest market-moving news and incisive insight sent straight to your inbox every day, including the Equity Briefing, by subscribing to receive our market commentary updates.
Online fashion retailer ASOS will report a trading statement covering the four months to the end of June this morning. Expectations are high following the company’s record first-half performance that saw revenue and profits surge. The update will focus on revenue figures but should also provide some commentary on margins and the outlook for the remaining two months of the financial year. The biggest threats to growth going forward are any loss of sales from rivals reopening physical stores and the fragile economic outlook for its 20-something clientele. Investors will also be cautious about how higher levels of investment will impact its profitability going forward.
TSMC, the world’s leading semiconductor foundry churning out chips for companies spanning Apple to Intel, will release second-quarter results later today. The company’s guidance is targeting net revenue of between $12.9 billion and $13.2 billion, and analysts are expecting it to report toward the top end of that range. That would compare to the $10.38 billion revenue booked the year before. Analysts are expecting diluted earnings per American Depositary Receipt of $0.93 compared to $0.78 the year before.
US banks have smashed expectations since the start of the second-quarter earnings season thanks to the release of funds set aside for bad loans and the improving economic picture. Morgan Stanley, US Bancorp and Bank of NY Mellon will round off the week when they report results before US markets open today. Analysts are expecting Morgan Stanley’s diluted EPS to drop to $1.65 from $1.95 the year before following its record results in the first quarter. US Bancorp is expected to book diluted EPS of $1.14 compared to just $0.41 the year before. Meanwhile, Bank of NY Mellon is forecast to report EPS of $1.00, broadly flat from $1.01 the year before.
How to trade top stocks
You can trade a variety of stocks with City Index by following these four steps:
- Open a City Index account, or log-in if you’re already a customer.
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.