There are several banks reporting earnings on Friday before the market opens. The financials have seen a solid run over the last few weeks after their balance sheets all passed the stress tests. A great number of banks also increased dividends and raised their buybacks at that time, so does that mean we are going to get good earnings from group?
There are four big banks, and two smaller ones reporting so we should get a good idea of what to expect from the others in the group by the time the market opens. Let’s take a look at the four bigger banks that are reporting Friday morning.
Citigroup (C - Free Report) is expected to post revenue of $17.4B, down from $17.55B last year and EPS of $1.21, down from $1.24 a year ago. The stock is a Zacks Rank #3 (Hold) and has a growth style score of “F” so it is not something that I am going to be looking into too deep.
JPMorgan Chase (JPM - Free Report) is expected to post revenue of $24.36B, up from $23.84B which was posted a year ago. On the bottom line, analysts are looking for $1.59, up from $1.55 in the year ago period. This is also a Zacks Rank #3 (Hold) but has all F’s for the style scores.
PNC (PNC - Free Report) is also looking to post some mild revenue growth if it can hit the expected level of $3.97B as that would be up from $3.82B in the year ago period. EPS is expected come in at $2.02, up substantially from $1.82 in the year-ago period. PNC has posted EPS ahead of the consensus in each of the last four quarters with the last two quarters showing $0.13 beats each time. PNC is a Zacks Rank #3 (Hold) but has a value style score of “C” and a momentum style score of “A” so this is one to keep your eye on.
Wells Fargo (WFC - Free Report) has had a tough year, but analysts are looking for them to post slightly higher revenue numbers. The consensus estimate for revenue is $22.2B and that would be up from $22B in the year-ago period. EPS is expected to be flat with the number posted last year at $1.01. Over the last four quarters there has been two beats, one miss and one meet of the consensus estimate. WFC is a Zacks Rank #4 (Sell).
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