Banking, finance, and taxes

Key Bank Earnings Previews: Book Value Vs. Price Targets In Focus (JPM, GS, BAC, C, USB, BK, SCHW, CMA, MTB, BBT, BLK, COF, MS)

With banks having been the best DJIA sector in 2012, the outlook versus the valuation has started to play a game of catch-up as we are getting deeper into earnings season this week. Because the banks rose so much, they are in some cases priced for perfection.

24/7 Wall St. has decided to offer up a preview and earnings cheat sheet for the banking and finance sector’s key earnings this week. DJIA components Bank of America Corp. (NYSE: BAC) and J.P. Morgan Chase & Co. (NYSE: JPM) are on deck, as are key financial giants like Goldman Sachs Group Inc. (NYSE: GS), Citigroup, Inc. (NYSE: C), Bank of New York Mellon Corp. (NYSE: BK), and others.

We have taken consensus estimates and the consensus price targets on each stock from Thomson Reuters. Book value per share was taken from Ycharts.com and Yahoo! Finance.

Wednesday’s key bank and financial earnings are the following:

Bank of New York Mellon Corp. (NYSE: BK) is expected to report $0.54 EPS and $3.6 billion in sales. At $26.66 its 52-week range is $19.30 to $27.32 and the consensus price target is $26.82. This fiduciary bank most recently had a book value of $30.11.

Charles Schwab Corp. (NYSE: SCHW) is expected to report earnings of $0.15 EPS and $1.21 billion in revenue. At $15.20, the 52-week range is $11.34 to $15.57, but we would note that the consensus analyst price target is down at $14.28.

Comerica Inc. (NYSE: CMA) reports Wednesday morning and estimates are $0.65 EPS and $620.1 million in revenue. At $31.70, the 52-week range is $27.421 to $34.00 and the consensus price target objective is $33.18. The book value per share is $36.61.

Goldman Sachs Group Inc. (NYSE: GS) reports Wednesday morning and the estimates are $3.66 EPS and $7.83 billion in revenue. At $137 now, the 52-week trading range is $90.43 to $138.15 and the consensus price target is under the share price as it is now at $134.71. Goldman Sachs had a book value of $140.58 as of its last quarter.

J.P. Morgan Chase & Co. (NYSE: JPM) is set to report early Wednesday and estimates are $1.19 EPS and $24.44 billion in revenue. The current price of $45.90 compares to a 52-week range of $30.83 to $46.49 and compares to a consensus price target of $50.21 for the stock. Team-Dimon was listed as having a book value of $50.18 per share.

M&T Bank Corp. (NYSE: MTB) is set to report earnings before the market opens on Wednesday. Estimates are $2.18 EPS and $1.12 billion in revenue. With shares at $103, the 52-week range is $76.92 to $105.33 and the consensus price target is only $107.18. M&T’s book value was listed as $71.58 per share.

Northern Trust Corp. (NASDAQ: NTRS) reports on Wednesday morning and its estimates are  $0.75 EPS and $988.2 million in revenue. At $52.22, the 52-week range is $40.64 to $53.50 and the consensus price target is $50.75. This trust and fiduciary bank has a book value of $31.32 per share.

U.S. Bancorp (NYSE: USB) is also up for earnings and estimates are $0.74 EPS and $5.16 billion in sales. At $33.33, the 52-week range is $27.30 to $35.46 and the consensus price target is $36.91. US Bancorp has a book value of $18.50 per share.

Thursday is going to bring another big earnings day for banking and financial companies. The following reports are due Thursday morning:

Bank of America Corp. (NYSE: BAC) reports Thursday morning and the estimates are $0.02 EPS and $21.1 billion in revenue. At $11.57, the 52-week range is $6.44 to $12.20 and the consensus price target is now up at $11.98. That target price from analysts has crept significantly higher since the end of 2012. BofA’s book value is listed as $20.40 per share.

BB&T Corp. (NYSE: BBT) is expected to post $0.71 EPS and $2.46 billion in sales. At $30.20, the 52-week trading range is $26.58 to $34.37 and the consensus price target from analysts is $33.03 for BB&T. The book value per share is $26.97.

BlackRock Inc. (NYSE: BLK) has consensus estimates of $3.69 EPS and $2.5 billion in sales. At $222, this money management giant has traded between $160.25 and $224.47 over the last year and analysts see the consensus price target as $225.67.

Capital One Financial Corp. (NYSE: COF) is expected to report $1.61 EPS and $5.88 billion in revenue. At $61.74, this credit card issuer (and bank) has traded between $44.30 and $62.92 in the last 52-weeks and analysts have a consensus price target of $69.85 on the stock.

Citigroup, Inc. (NYSE: C) has consensus estimates of $0.96 EPS and $18.8 billion in revenue. Citigroup trades around $42.25 and the 52-week range is $24.61 to $43.25. Analysts have a consensus price target of $47.43 on Citi and the book value was recently put at $64.25 per share.

Morgan Stanley (NYSE: MS) is expected to report $0.29 EPS and $7.07 billion in revenue. Morgan Stanley trades at $20.30 and the 52-week trading range is $12.26 to $21.19. Its consensus price target is $21.00 and the most recent book value was pegged at $32.23 per share.

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