When Earnings Season Gets Real, This Industrial Supplier Gets the First Test
Earnings season broadens next week while higher bond yields keep pressure on most sectors outside tech. That makes company-level numbers even more useful.
This week’s five reports between Wednesday and Friday, giving you clean tests of industrial demand, bank margins, asset flows, and freight activity.
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Fastenal (FAST)
Catalyst: Reports Wednesday after daily sales jumped 14.7%
Fastenal enters earnings with strong operating momentum. Second-quarter daily sales increased 14.7%, driven by market-share gains with larger customers, pricing, and broad demand across its core industrial markets. Operating margin held at 21.0%, while operating cash flow reached $266 million.
Wednesday’s report is a useful read on the industrial economy. Fastenal sells everything from fasteners and safety products to inventory-management services directly inside customer facilities. Growth therefore tells us something about factory activity, construction, and corporate spending beyond the company itself.
My Take: Wait for the report. FAST becomes more attractive if daily sales remain firmly positive and margins hold despite higher input costs.
What to watch: Daily sales growth, large-customer wins, price versus cost, operating margin, and industrial demand.
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State Street (STT)
Catalyst: Reports Wednesday after revenue and fee income both grew 17%
State Street had an unusually strong second quarter. Revenue increased 17% to $4.05 billion, fee revenue rose 17%, and net interest income climbed 18%. Diluted EPS reached $3.65, up 68% year over year.
The business now oversees roughly $57.9 trillion in assets under custody and administration and $6.3 trillion in assets under management. That makes Wednesday’s report a broad read on institutional markets, ETF flows, trading activity, and asset values. Higher rates can support interest income, but volatile markets also affect fees and client flows.
My Take: STT is one of the cleaner financial names heading into earnings. Stay constructive if fee growth remains healthy and higher rates continue helping net interest income.
What to watch: Servicing fees, management fees, net interest income, assets under custody, and operating margins.
PNC Financial Services (PNC)
Catalyst: Reports Thursday after record revenue and net interest income
PNC enters Thursday with a high bar. Second-quarter revenue reached a record $6.88 billion, while net interest income increased 4% sequentially to a record $4.11 billion. Fee income rose 10%, average loans grew 4%, and adjusted EPS reached $4.85.
The bank is also digesting its FirstBank acquisition, which expands PNC’s footprint while creating another source of cost savings and revenue growth. With Treasury yields elevated, investors will be watching whether stronger lending income outweighs higher funding costs. Credit quality matters just as much if borrowing costs stay high.
My Take: PNC works if higher rates translate into wider earnings power without damaging deposits or credit. Buy weakness only if that balance remains intact.
What to watch: Net interest income, deposit costs, loan growth, credit losses, FirstBank integration, and capital returns.
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J.B. Hunt Transport Services (JBHT)
Catalyst: Reports Thursday after intermodal operating profit surged 58%
J.B. Hunt gave investors one of the stronger transportation reports last quarter. Revenue rose 19% to $3.50 billion, operating income increased 32%, and EPS jumped 45% to $1.91.
Intermodal was the standout. Segment revenue grew 22%, volumes increased 10%, and operating income surged 58%. Higher fuel costs and tighter trucking capacity made rail-based intermodal shipping more attractive to customers, while J.B. Hunt also benefited from better pricing and strong Eastern network growth.
Thursday tells us whether that momentum survived into the third quarter. Freight is cyclical, so sustained volume growth would be a meaningful signal for both J.B. Hunt and the broader goods economy.
My Take: JBHT is attractive if intermodal volumes and margins keep improving together. Weak pricing would make the recovery less convincing.
What to watch: Intermodal volumes, revenue per load, truck demand, operating margins, fuel surcharges, and customer pricing.
Truist Financial (TFC)
Catalyst: Reports Friday with higher rates putting regional-bank economics under the microscope
Truist finished the second quarter with $5.27 billion in revenue and EPS of $1.23, up 37% from a year earlier. Net interest income reached $3.62 billion, while noninterest income increased to $1.64 billion. The bank also returned $1.8 billion through dividends and share repurchases.
Friday’s report matters because regional banks are especially sensitive to the current rate environment. Higher lending rates can help asset yields, but banks also have to pay enough to keep deposits while watching commercial and consumer credit. Truist has significant exposure to fast-growing southeastern U.S. markets, which gives it a better loan-growth backdrop than many peers.
My Take: TFC deserves a closer look if net interest income expands and credit stays clean. If deposit costs jump or losses accelerate, stay patient.
What to watch: Net interest margin, deposits, loan growth, credit quality, capital markets revenue, and buybacks.
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Final Word
Next week gives you five straightforward checkpoints.
Fastenal and State Street report Wednesday. PNC and J.B. Hunt follow Thursday. Truist finishes the list Friday.
Fastenal tells us about industrial demand. State Street gives us institutional-market activity. PNC and Truist test the higher-rate banking setup. J.B. Hunt gives us a read on freight and goods movement.
The takeaway: Do not predict the earnings reaction. Let the report tell you whether the business is strengthening, then use weakness when the numbers still support the thesis.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
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