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The financial stocks that jumped the most in the past week mostly scored substantial beats on their latest quarterly earnings, with insurance-focused stocks leading the pack.
For the week, the Financial Select Sector SPDR ETF (XLF) ticked down 0.1%, outperforming the S&P 500’s 2.3% decline.
Erie, PA-based insurer Erie Indemnity (NASDAQ:ERIE) surged 25% during the week ended Aug. 4, 2023; its Q2 EPS and revenue both beat consensus estimates by impressive margins as management fee revenue rose 16% Y/Y.
NMI Holdings (NASDAQ:NMIH) climbed 10% after Q2 results came in stronger than expected and the mortgage insurance company announced an additional $200M share repurchase authorization.
Genworth Financial (NYSE:GNW), also an insurer, rose 8.0% after its board authorized the repurchase of an additional $350M of stock. The company postponed its Q2 results to give it more time to complete accounting for long-term care insurance legal settlements.
StoneX Group (NASDAQ:SNEX), a financial service network, advanced 7.5% after posting fiscal Q3 GAAP EPS that beat the consensus estimate by $0.81 as operating revenue jumped 47% Y/Y.
Hercules Capital (NYSE:HTGC), a provider of specialty financing focusing on venture and growth companies, increased 7.0% during the week, after its Q2 net investment income of $75.7M jumped 89% Y/Y.
Earnings and guidance also fueled some of the biggest drops in the financial sector.
PayPal Holdings (NASDAQ:PYPL) swooned 15% during the week after it logged in-line Q2 earnings and its number of active accounts dipped for a second quarter.
While MarketAxess’s (NASDAQ:MKTX) Q2 earnings turned in slight beats, the results and unchanged guidance apparently disappointed. MKTX stock slid 10% for the week;
Brazilian bank Banco Bradesco (NYSE:BBD) dropped 10% after Q2 net income fell to R$4.07B from R$7.33B in the year-ago quarter.
While Credit Acceptance (NASDAQ:CACC) Q2 earnings easily beat the consensus estimate, the auto lender reported a decrease in forecasted collection rates, which decreased forecasted net cash flows from its loan portfolio; CACC shares fell 9.1%;
T. Rowe Price (NASDAQ:TROW) shares declined 8.9%.
