In early trading on Friday, the Dow Jones industrials were up 0.11%, the S&P 500 up 0.35% and the Nasdaq 0.24% higher.

Before markets opened on Friday morning, JPMorgan reported solid beats to the consensus estimates for first-quarter earnings per share (EPS) and revenue. Net interest income was up 49% year over year, thanks to interest rate hikes, and non-interest revenue rose 5%. The nation’s largest bank added $2.3 billion to its loan-loss provision. CEO Jamie Dimon cautioned that economic “storm clouds” remain and that “financial conditions will likely tighten as lenders become more conservative, and we do not know if this will slow consumer spending.” Shares traded up 6.9% early Friday.

BlackRock also reported top-line and bottom-line results that beat expectations. Tempering enthusiasm was a decline in assets under management by 5% year over year to $9.09 trillion. Shares traded up 3.8% Friday morning.

Citigroup reported top-line and bottom-line results that exceeded consensus estimates, and it raised revenue guidance for fiscal 2023 to a range of $78 billion to $79 billion. Shares traded up 3.5%.

Wells Fargo followed the fold with beats on both the top and bottom lines. The bank set aside $643 million as a loan-loss provision, citing concerns about commercial real estate loans, credit card debt and auto loans. Shares traded down 0.5%.

UnitedHealth Group also topped consensus EPS and revenue estimates, and it issued in-line EPS guidance of $24.50 to $25.00. Shares traded down 0.4% early Friday.

Before U.S. markets open on Monday, Charles Schwab, M&T Bank and State Street are on deck to report quarterly results.

Here is a look at three financial services firms that will reveal first-quarter results first thing Tuesday.

Bank of America

Shares of Bank of America Corp. (NYSE: BAC) have dropped by 26.4% over the past 12 months. BofA has added about 3.3% over the past five trading sessions, but on Tuesday it reported that clients had suffered an outflow of $2.3 billion in equity investments. As with other banks, rising interest rates likely will boost net interest income, but slowing loan growth following the Silicon Valley Bank debacle could weigh on March revenue and on revenue going forward.

Analysts remain moderately bullish on BofA, with 13 of 26 having a Buy or Strong Buy rating. Of the rest, 11 have Hold ratings. At a recent share price of around $28.50, the implied gain based on a median price target of $35.10 is 23.2%. At the high price target of $45.00, the implied upside is about 57.9%.

First-quarter revenue is forecast at $25.28 billion, which would be up 3% sequentially and by 8.8% year over year. Adjusted EPS are expected to come in at $0.83, down 2.9% sequentially but up 3.8% year over year. For the full 2023 fiscal year, analysts forecast EPS of $3.32, up 4%, on revenue of $99.3 billion, up about 4.6%.

BofA’s stock trades at 8.6 times expected 2023 EPS, 8.4 times estimated 2024 earnings of $3.40 and 8.0 times estimated 2025 earnings of $3.57 per share. The stock’s 52-week trading range is $26.32 to $40.37. BofA pays an annual dividend of $0.88 (yield of 3.08%). Total shareholder return for the past 12 months was negative 24.6%.

Bank of New York Mellon Corp. (NYSE: BK) has dropped about 4.4% from its share price over the past 12 months. Like other banks, the stock tumbled after the bank crisis of early March. Until then, the shares were up more than 40% over the past six months. For that period, the stock is still up nearly 26%. A looming recession could have a smaller impact on the bank because most of its revenue is derived from service fees for its custody services. Rising interest rates also could help revenue by allowing the bank once again to charge management fees for its handling of money market funds.

Of the 18 analysts covering the stock, 10 have a Buy or Strong Buy rating and seven rate it at Hold. The median price target on the stock is $55.00, and at a recent price of around $46.20, the upside potential is around 19%. At the high target of $62.00, the potential upside is 34.2%.

First-quarter revenue is forecast at $4.4 billion, up 12.4% sequentially and nearly 12% higher year over year. Adjusted EPS are expected to come in at $1.11, down 14.6% sequentially but 18.1% higher year over year. For the full 2022 fiscal year, analysts forecast EPS of $4.91, up 7%, on revenue of $17.74 billion, up 8.3%.

The stock trades at 9.4 times expected 2023 EPS, 8.8 times estimated 2024 earnings of $5.22 and 8.4 times estimated 2025 earnings of $5.51 per share. The stock’s 52-week range is $36.22 to $52.26. BNY Mellon pays an annual dividend of $1.48 (yield of 3.23%). Total shareholder return for the past 12 months was negative 1.22%.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Goldman Sachs

Goldman Sachs Group Inc. (NYSE: GS) has posted a 12-month share price increase of about 3.2%, turning around a 12-month drop of 5.2% at the end of the December quarter. Given the bank’s dependence on investment banking services for IPOs, mergers and acquisitions (of which there were few in the first quarter), the bank could take another hit to profits. Trading revenue is likely to be higher, but probably not high enough to cover the arid deal landscape.

Of the 25 analysts covering the firm, 16 have a rating of Buy or Strong Buy, and eight more have Hold ratings. At a share price of around $332.10, the upside potential based on a median price target of $390.00 is 17.4%. At the high price target of $460.00, the implied upside is 38.5%.

First-quarter revenue is forecast to come in at $12.66 billion, up 19.5% sequentially but a drop of 2.1% year over year. Adjusted EPS are forecast at $8.06, up 142.7% sequentially but down 33.0% year over year. The current estimates for the 2023 fiscal year call for revenue of $49.44 billion, up 4.4%, and EPS of $31.75, up 5.6%.

Goldman stock trades at 10.6 times expected 2023 EPS, 8.7 times estimated 2024 earnings of $38.60 and 8.0 times estimated 2025 earnings of $42.40 per share. The stock’s 52-week range is $277.84 to $389.58. Goldman pays an annual dividend of $10.00 (yield of 3.01%). Total shareholder return for the past 12 months was 7.62%.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.