Banking, finance, and taxes
What to Expect From Earnings at Citigroup, J.P. Morgan, Wells Fargo
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Earnings season has arrived, and it has coincided so far with a serious wave of market volatility that is currently biased toward profit taking and selling. That being said, investors have shown on multiple occasions that they are willing to buy oversold stocks and overlooked value stories. So, what are investors looking for ahead of this week’s key financial earnings from the likes of Citigroup, J.P. Morgan and Wells Fargo?
All three of these earnings reports are expected on Tuesday morning before the market opens. All are major banks, and it will be very interesting to see if there are common themes or if the banks have begun having trends that are independent of each other. As such, 24/7 Wall St. has created an earnings preview for each of the major banks reporting on Tuesday morning.
Citigroup Inc. (NYSE: C) recently announced that it would spin-off OneMain Financial later this fall, and the filing for the offering is up to $50 million. In August, Citigroup announced that it planned to exit the Japanese retail banking market to refocus its overseas strategy on growth markets, as opposed to saturated markets such as Japan. Thomson Reuters has third-quarter consensus earnings estimates for Citigroup as follows:
Over the course of the third quarter, Citigroup has seen its shares rise handily — 10% to $51.82 at the end of September. That being said, the stock is down about $3 from mid-September. Citigroup was trading at $50.39 Monday. The company’s shares have a consensus analyst price target of $59.13, with a 52-week trading range of $45.18 to $55.28. Citigroup has a market cap of $152 billion.
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JPMorgan Chase & Co. (NYSE: JPM) is the bank with the fortress balance sheet of more than $2.52 trillion in assets. This quarter, J.P. Morgan was hit by cyberattacks, resulting in the theft of customer and employee information. Despite this intrusion, the stock did not take a serious hit and managed to rise in the third quarter. After almost reaching $62, an all-time high, the stock has slid to under $59 in the past couple of weeks. Thomson Reuters has third-quarter consensus earnings estimates for J.P. Morgan as follows:
J.P. Morgan was trading at $58.74 Monday. The company’s stock has a consensus analyst price target of $67.51 and a 52-week trading range of $51.30 to $61.85. J.P. Morgan has a market cap of $221 billion.
Wells Fargo & Co. (NYSE: WFC) had almost $1.6 trillion in assets at the end of June. It ranked third among all banks in deposits, according to the FDIC. The previous earnings report was lackluster as the bank had some trouble putting its deposits to work earning returns. The strong deposit growth pushed the bank’s net margin down, despite Wells Fargo saying that the impact on net income was essentially neutral. Thomson Reuters has third-quarter consensus earnings estimates for Wells Fargo of:
Wells Fargo shares fluctuated slightly over the course of the third quarter, with a range of $49.47 to $53.80. But it ultimately remained relatively the same closing out the quarter. Wells Fargo was trading at $50.75. The company’s shares have a consensus analyst price target of $55.13 and a 52-week trading range of $41.10 to $53.80. Its market cap is $264 billion.
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