Banking, finance, and taxes
Top Banking and Finance Earnings Previews for the Week Ahead
Published:
Last Updated:
24/7 Wall St. has put together a preview of some of the larger companies in the financial sector that are due to report their quarterly results in the week ahead. These are not all the sector players with earnings reports, and the following week will be full of regional and other financial stocks.
Corporate earnings season is here, all over again. We have reviewed the consensus earnings estimates from Thomson Reuters, the stock price and the trading history, as well as added some additional color on each.
J.P. Morgan
JPMorgan Chase & Co. (NYSE: JPM) will release its most recent quarterly results Tuesday. The consensus estimates are $1.38 in earnings per share (EPS) on $24.40 billion in revenue.
This bank has been fighting calls to break itself into pieces. Legal expenses have weighed on shares and low interest rates and lack of volatility have weighed on revenues. New capital requirements have also pinched profits. It will be interesting to see how J.P. Morgan will handle earnings while carrying all this weight.
At the end of Friday’s trading session, shares were at $61.70. The consensus price target is $69.09, and the 52-week trading range is $52.97 to $63.49.
ALSO READ: Merrill Lynch Sees 3 Financials Beating Earnings Handily
Wells Fargo
Wells Fargo & Co. (NYSE: WFC) is scheduled to report its first-quarter results on Tuesday. The consensus estimates call for $0.98 in EPS and $21.24 billion in revenue.
Wells Fargo is the largest bank in the United States by market cap at $281 billion. The EPS estimate is lower than the $1.05 the bank earned in the first quarter of 2014. Wells Fargo’s forward price-to-earnings (P/E) estimate is around 12 and the price-to-book ratio is 1.68.
Shares closed trading at $54.32 on Friday, below the consensus analyst price target of $57.19. The 52-week trading range is $46.44 to $56.29.
Bank of America
Bank of America Corp. (NYSE: BAC) is scheduled to report its first-quarter earnings on Wednesday. The consensus estimates call for EPS of $0.29 and $21.51 billion in revenue.
As earnings have approached, Bank of America has managed to cut its massive legal costs, but it has depended on other cost cuts to maintain profitability. Trading profits turned to losses last quarter and that may continue.
Shares traded at $15.72 as the week came to a close. The consensus price target is $18.40, and the stock has a 52-week trading range of $14.37 to $18.21.
Charles Schwab
Charles Schwab Corp. (NYSE: SCHW) is set to post its first-quarter results Wednesday. Consensus estimates call for EPS of $0.24 and $1.55 billion in revenue.
RBC Capital markets recently started Charles Schwab as Outperform with a $38 price target, compared to its close on March 26 of $29.78. Just the day before, Barclays upgraded the stock to an Overweight rating from Underweight and raised its price target to $34 from $25.
At the end of Friday’s trading session, shares were changing hands at $30.70. The consensus price target is $33.11. The 52-week trading range is $23.35 to $31.73.
ALSO READ: Ahead of Earnings, Which Bank Stock Is Cheapest?
American Express
American Express Co. (NYSE: AXP) is scheduled to report its first-quarter results on Thursday. The consensus estimates call for $1.36 in EPS and $8.22 billion in revenue.
American Express is expected to have a solid first quarter, with earnings driven by healthy U.S. billings and loan growth, and by stable credit. That being said, the focus will remain on the longer term effects of the Costco co-brand loss.
Shares ended the week at $79.59, below the consensus analyst price target of $89.00. The 52-week trading range is $77.12 to $96.24.
Citigroup
Citigroup Inc. (NYSE: C) will release its most recent quarterly results Thursday. The consensus estimates have EPS at $1.39 on $19.81 billion in revenue.
Like Bank of America and J.P. Morgan, Citigroup has put much of its legal liabilities behind it, and it may be the cheapest of the big banks to own now. At least that is what UBS analysts think.
In Friday’s trading session, shares closed at $52.43. The consensus price target is $61.68, and the 52-week trading range is $45.18 to $56.95.
Goldman Sachs
Goldman Sachs Group Inc. (NYSE: GS) is set to report its earnings on Thursday. The consensus estimates are for EPS of $4.21 and revenue of $9.28 billion.
This brokerage firm posted profits for the fourth quarter and the full 2014 fiscal year largely on the strength of lower non-compensation expenses. Litigation expenses and impairment charges also fell. But cutting costs can only take a bank so far.
Shares changed hands at the end of the week at $195.64. The stock has a consensus price target of $198.36. Shares have traded between $151.65 and $198.06 in the past year.
ALSO READ: Why Many Banks Need Fed Interest Rate Hikes Sooner Rather Than Later
Synchrony
Synchrony Financial (NYSE: SYF) is scheduled to report its first-quarter earnings Friday. The consensus estimates are for $0.65 in EPS and revenue of $2.76.
Synchrony is edging closer to its total separation from General Electric. In a report from Merrill Lynch in late March, analysts believed that Synchrony’s share price was approaching fair value. They also said that Synchrony’s management team has had good execution and that it now has a premium valuation against peers and a lack of near-term earnings catalysts.
The share price was $30.59 at the close on Friday. The consensus analyst price target is $32.97, and the 52-week trading range is $22.60 to $33.96.
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.