UBS Group AG (USA)’s (NYSE:UBS) outlook for the second quarter of 2018 sent UBS stock down on Monday.
The blow to UBS stock comes from the banking company’s cautious statements concerning its outlook for the second quarter of the year. The company warns that its results for the second quarter are typically lower than its first, but it doesn’t stop there. It notes that market volatility is remaining muted, which leads to less client activity.
UBS also points out that it is expecting “funding costs related to long-term debt and capital instruments issued to comply with regulatory funding and liquidity requirements will be higher compared with the same period in 2017.”
UBS’s statement concerning its outlook for the second quarter of the year also notes that certain concerns may cause investors to lose confidence. This includes “geopolitical tensions and the rise of protectionism.”
While UBS’s statements concerning its outlook for the second quarter of 2018 come across as cautious, company Sergio Ermotti says this isn’t the case. Instead, he sees them as neutral and claims to have a “realistic view of the world.”
UBS’ statement concerning its second-quarter outlook comes alongside its earnings report for the first quarter of 2018. The company reported earnings per share of 40 cents on revenue of $7.89 billion. Wall Street was looking for earnings per share of 42 cents on revenue of $8.06 billion for the first quarter of the year. This miss also wasn’t helpful to UBS stock today.
UBS stock was down 2% as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.