As the earnings season has just kicked off, we are now hailing some of the first reporters, which are the major banks. Quarterly performance is just one issue, but for the first quarter S&P Global Market Intelligence is predicting that the S&P 500 financial sector’s earnings would fall by nearly 7%. However, this could be a lot worse looking at the S&P 500 as a whole, including energy and materials.
24/7 Wall St. has put together a preview of some of the major financial companies reporting their quarterly results this week. We have included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each. Keep in mind that these estimates are subject to change.
JPMorgan
On Wednesday, JPMorgan Chase & Co. (NYSE: JPM) is scheduled to reveal its first-quarter results. The consensus estimates call for $1.26 in earnings per share (EPS), as well as $23.40 billion in revenue. In the same period of last year, it posted EPS of $1.45 and $24.82 billion in revenue. Overall, earnings are expected to drop 13% from last year. This company recently added $1.88 billion or so to its buyback plan, a move that saved its weekly performance. The total market cap here is $211.5 billion, and while the $1.88 billion doesn’t sound massive against the market cap, it is actually on top of the $6.4 billion authorized for repurchase last year.
Shares were trading at $58.81 on Tuesday. The consensus price target is $69.29. The stock has a 52-week trading range of $50.07 to $70.61.
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Bank of America
Bank of America Corp. (NYSE: BAC) is expected to report its first-quarter results on Thursday. The analysts’ consensus estimates call for EPS of $0.21 and revenue of $20.30 billion. The same period from last year had $0.27 EPS on $21.42 billion in revenue. Earnings are expected to decrease 22% from last year. This company added $800 million, a 20% increase, to its existing buyback authorization of $4 billion. It has been more restricted than it may have preferred in the past under the Federal Reserve’s Comprehensive Capital Analysis and Review, but this seems to be a continued gradual loosening up of its ability to send cash back to shareholders.
Shares were changing hands at $13.11 on Tuesday. The consensus price target is $17.41, and the stock has a 52-week range of $10.99 to $18.48.
Wells Fargo
Look for Wells Fargo & Co. (NYSE: WFC) to share its latest quarterly earnings on Thursday as well. The consensus forecast calls for EPS of $0.98 and $21.60 billion in revenue. In the same period of last year, it posted $1.04 in EPS on $21.28 billion in revenue. Earnings are expected to drop 5.8% from last year. Wells Fargo is a nationwide, diversified, community-based financial services company with $1.8 trillion in assets. The company provides banking, insurance, investments, mortgage and consumer and commercial finance through 8,700 locations, 12,800 ATMs, the Internet and mobile banking, and it has offices in 36 countries to support customers who conduct business in the global economy. Wells Fargo serves one in three households in the United States. This is a stock for investors to look at now for safety and dividends with solid upside potential.
Shares traded at $47.35 on Tuesday, in a 52-week range of $44.50 to $58.77. The consensus price target is $55.57.
Citigroup
On Friday, Citigroup Inc. (NYSE: C) is set to report its first-quarter results. The analysts’ consensus estimates are EPS of $1.06 and $17.58 billion in revenue. That compares to the $1.51 in EPS on revenue of $19.81 billion in the same period of last year. Earnings are expected to drop nearly 30% year over year. Unlike the other megabanks though, Citi’s number one credit exposure is transportation and industrial, much of which actually benefits from lower energy prices, so Citi is in good shape here, comparatively, as it is naturally hedged. At the end of 2007, main exposure was to banks, so indirect exposure to real estate was what brought the bank down.
Shares of Citigroup were changing hands at $41.70 on Tuesday. The consensus price target is $56.15, and the 52-week range is $34.52 to $60.95.
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