Strong Q1 earnings help bolster the week’s financial gainers (Commodity:XAGUSD:CUR)
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Strong Q1 earnings help bolster the week’s financial gainers (Commodity:XAGUSD:CUR)

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With earnings season in full swing, most of biggest gainers among financial stocks can attribute their rise to better-than-expected earnings, even as the broader market declined.

  • Silvergate Capital (NYSE:SI) leads as the best-performing financial stock (with a market cap exceeding $2B) this week, rising 8.5%. Its Q1 earnings easily beat the consensus as its average deposits reached a record $14.7B and the number of its digital currency customers increased;
  • M&T Bank (MTB) shares gained 8.1% during the week after Morgan Stanley gave a rare double-upgrade with an Overweight rating as the yield curve prices in the likelihood of a full 300 basis points of rate hikes this year. Q1 earnings topped the consensus estimate, reflecting strong credit quality and higher trust income;
  • Insurance company RLI Corp. (RLI) gained 7.9% after Q1 EPS of $1.05 exceeded the average analyst estimate of $1.03;
  • Piper Sandler (PIPR) rose 7.5%; and
  • SVB Financial (SIVB) stock climbed 6.7% this week after the owner of Silicon Valley Bank turned in stronger-than-expected Q1 results and Wedbush raised its 2023 and 2023 GAAP EPS estimates for SIVB soon after.

Meanwhile, among the week’s decliners are two high-profile fintech names and a broker that issued a disappointing business update.

  • Goosehead Insurance (GSHD) leads the week’s decliners, dropping 18% for the week;
  • PayPal Holdings (PYPL) stock slid 16% in a week where Amazon (AMZN) unveiled a payment option that may hurt PayPal, and the company disclosed a $32M pay package for its CEO;
  • Charles Schwab (SCHW) stock fell 15% after Q1 earnings missed expectations and the company’s CFO explained that clients are moving some funds to investments “off our balance sheet into higher yielding alternatives.”
  • SoFi Technologies (SOFI) dropped 12% for the week, its third week in the biggest decliners list, and down 60% YTD. The stock, which has a significant business in refinancing student loans, has been hurt by the pause in federal student loan payments; and
  • Trupanion (TRUP) rounds out the list with a 12% decline.

On Thursday, Q1 earnings at KeyCorp (KEY), a large regional bank, missed the consensus estimate as fee income declined amid market uncertainty