BigBear.ai Holdings Stock Declines by Almost 14% on Weak Earnings Report

Bank of America (BofA) reported a net income of $7.8 billion for the third quarter, representing a 10% increase compared to the same period last year. The bank's revenue also rose to $25.2 billion, slightly surpassing expectations [f83283d1].

The growth in profit was driven by several factors. Bank of America's consumer banking unit experienced a 6% increase in revenue, with spending on debit and credit cards rising by 3%. Additionally, the bank saw strong performance in its investment banking and trading divisions, with investment banking fees rising 2% and sales and trading revenue reaching its highest level in over a decade, up 8% [e2a31071].

Bank of America's average deposit balances rose to $1.9 trillion, while average loan and lease balances increased to $1 trillion. However, the bank also reported unrealized losses of $131.6 billion on securities held until maturity. Despite this, analysts do not expect the bank to be forced to sell the securities at a loss [f83283d1].

During the third quarter, Bank of America's stock price was influenced by bearish sentiment in the sector, leading to a drop in its stock value [f83283d1].

Looking ahead, Bank of America's CFO stated that the bank's headcount is expected to remain flat [e2a31071].

Shares of Bank of America were 1.7% higher in premarket trading [e2a31071].


First Abu Dhabi Bank (FAB), the largest lender in the UAE, reported a 46% increase in its third-quarter net profit, driven by growth in its core business and double-digit growth in interest and non-interest income. The bank's net profit for the three months ending September reached Dh4.3 billion ($1.17 billion), the highest quarterly profit on an underlying basis. Operating income for the same period rose to Dh7 billion, up 27% year on year. FAB's revenue at the end of September surged 38% to Dh20 billion, reflecting strong business volumes, improved margins, and broad-based growth across all businesses. The bank aims to mobilize $75 billion of sustainable finance projects by 2030 and has already funded over $18 billion in the first nine months of this year. Loans and advances and Islamic financing rose 3% to Dh478 billion, while customer deposits increased by 5% to Dh785 billion. FAB's strong financial performance is attributed to its international and diversified franchise, financial strength, and ample liquidity. [226b8629].


UAE money exchange and transfer company Al Ansari reported a 22% drop in net profit for the third quarter due to increased costs. Net profit for the three months ending in September was Dh124.5 million ($34 million), down from the previous year. The company's net gain on currency exchange fell 20% to Dh131.2 million, while finance costs more than doubled to Dh1.6 million. Despite economic and political uncertainties, Al Ansari remains confident in its core assets and value propositions. The company's nine-month net profit fell 10.5% to Dh387.8 million due to lower net gain on currency exchanges, higher expenses, and increased finance costs. Al Ansari's number of physical branches increased to 248 compared to the same period last year. The company plans to pay an interim dividend of Dh300 million, with a second payment to be disbursed in April 2024. [1b135af8].


Emirates airline reported a record profit of $2.6 billion for the first half of 2023-24, a 134% increase compared to the same period last year. The airline's revenue was $16.2 billion, up 19% from last year. The strong performance is attributed to high passenger demand for international travel and Emirates' ability to match capacity with demand. The airline carried 26.1 million passengers, a 31% increase from last year, and Emirates Skycargo uplifted 1,035,000 tonnes, an 11% increase. The Emirates Group, which includes Emirates airline, Dnata, and other subsidiaries, reported a net profit of $2.7 billion, a 138% increase from last year. The group's revenue was $18.3 billion, up 20% from last year. Dnata, a subsidiary of the group, saw its revenue increase by 27% to $2.5 billion. The group's employee base grew by 6% to 108,996 employees. Both Emirates and Dnata are conducting recruitment drives to support future requirements. [afd681d6].


Scotia Group Jamaica recorded a marginal decline in profit for the first quarter of the year. The financial institution made $3.13 billion in profit after tax obligations, compared to $3.37 billion in the same period last year. Total revenues, excluding expected credit losses, grew by $1.2 billion to reach $14.9 billion. The increase in revenue was driven by a growth in the company's loan portfolio and higher gains on foreign currency activities. However, there was a 2.5% decrease in net insurance revenue, reaching $524 million. This was due to higher insurance service expenses, offset by higher contractual service margin releases and revenue from the Creditor Life portfolio. [ab4578ff].


A.k.a. Brands Holding Corp. (AKA) reported a loss of $13.9 million in its fourth quarter, with a loss of $1.31 per share. The revenue for the period was $148.9 million, missing Street forecasts. For the year, the company reported a narrowed loss of $98.9 million, or $9.24 per share, with revenue of $546.3 million. A.k.a. Brands expects revenue in the range of $108 million to $112 million for the current quarter and full-year revenue in the range of $540 million to $555 million. A.k.a. Brands shares have climbed 48% since the beginning of the year. [ea45f396].

Hungarian automotive industry company Raba reported an after-tax profit of HUF 1.7 billion in the first three quarters of the year, compared to a loss of HUF 0.8 billion in the same period last year. The company's revenue increased by 22% to HUF 56 billion, with domestic sales rising by 17% to HUF 14.6 billion and exports increasing by 24% to HUF 41.4 billion. The direct cost of sales reached HUF 46.3 billion, while other operating costs increased by 15% to HUF 7.7 billion. Raba also saw a net financial gain of HUF 0.3 billion. The Chairman-CEO of Raba, Béla Hetzmann, emphasized the company's commitment to its 2025 modernization program, which focuses on sustainability investments and machinery [29aad72b].

AIA, the insurance company, has reported strong new business growth but profits fell short of estimates. The company's new business value increased by 22% to $4.2bn in the first quarter of 2021, driven by growth in its main markets of China and Hong Kong. However, its operating profit after tax for the same period was $1.3bn, missing analysts' estimates of $1.4bn. AIA's CEO, Lee Yuan Siong, attributed the lower-than-expected profits to higher-than-anticipated claims related to COVID-19. Despite the profit miss, AIA remains optimistic about its long-term prospects and expects continued growth in its key markets. [7b47bdbf].

Canada's BlackBerry reported a surprise profit for the fourth quarter, with an adjusted net profit of 3 cents per share, beating analysts' average estimate of a loss of 3 cents. The company's quarterly revenue stood at $173 million, beating analysts' average estimate of $154.78 million. Revenue in the cybersecurity unit rose 5% year-on-year to $92 million, while revenue from its internet of things (IoT) business jumped 25% to $66 million. BlackBerry expects first-quarter revenue in the range of $130 million to $138 million, below analysts' estimate of $151.12 million. The company expects full-year 2025 revenue in the range of $586 million to $616 million and adjusted loss per share of 3 cents to 7 cents. [7b4ba080].


Bakkt Holdings, Inc. reported quarterly total revenues of $214.5 million and full-year revenues of $780.1 million. The company's operational efficiency initiatives have led to a 55% year-over-year decrease in operating expenses, excluding crypto costs and certain impairments. Bakkt has secured $42.4 million from concurrent registered direct offerings to enhance liquidity. The company aims to expand its institutional crypto capabilities and launch institutional trading services in Q3 2024. Bakkt projects total revenues to significantly grow to between $3,292 million and $5,114 million in 2024. The company expects a 70% year-over-year reduction in operating cash flow usage. Bakkt reported a 41% increase in assets under custody, reaching $702 million. The company forecasts a 13-18% decrease in operating expenses year-over-year. Bakkt's financial update reflects its efforts to scale its business and achieve profitability in the digital asset landscape. [fedd5b35].


BigBear.ai Holdings (NYSE: BBAI) stock fell nearly 14% after weak earnings report. The company's Q1 2024 revenue was just over $33 million, down more than 21% YoY. The net loss deepened to over $125 million, or $0.67 per share, compared to a shortfall of slightly over $26 million in the previous year. Analysts were expecting revenue of nearly $44 million and a net loss of $0.06 per share. BigBear.ai's 2024 revenue guidance is $195 million to $215 million, in line with the average analyst projection. The stock decline was attributed to the wind-down of a program with the U.S. Air Force and the bankruptcy of a satellite company. The Motley Fool's Stock Advisor analyst team did not recommend investing in BigBear.ai. [b0a910e8]