Q3 earnings season kicked off in a big way this week, and several of the world’s largest banks released their most recent reports before the market opened on Friday morning. Here’s a round-up of the latest earnings data from Citigroup (C - Analyst Report) , JPMorgan Chase (JPM - Analyst Report) , and Wells Fargo (WFC - Analyst Report) .
More Good News Than Bad
While there wasn’t any absolutely spectacular news from these big banks this morning, we still saw some pretty solid results.
JPMorgan posted the biggest positive earnings beat, with EPS coming in at $1.58 versus the Zacks Consensus Estimate of $1.40. JPMorgan has now surpassed earnings expectations by an average of nearly 9% in each of the trailing four quarters.
The company also posted revenues of $25.51 billion, which was well ahead of our consensus estimate of $24 billion. Improved fixed income and equity trading revenues, higher mortgage banking fees and growth in investment banking income drove the results. Further, higher net interest income, perhaps attributable to the rise in loan supported top line (also read: JPMorgan Q3 Earnings Easily Top on Solid Trading & Lending).
Citigroup also came in ahead of expectations; it posted earnings of $1.24 per share on $17.76 billion in revenue, which beat our consensus estimates of $1.16 and $17.38 billion, respectively. Revenues from fixed income markets grew 35% and investment banking gained 15%, while adjusted net income fell 8% to $3.84 billion (also read: Citi Beats on Q3 Earnings Estimates).
Finally, controversy-riddled Wells Fargo (WFC - Analyst Report) also reported this morning. The company posted earnings of $1.02 per share, which beat the Zacks Consensus Estimate by a penny. Revenues came in at $22.2 billion, which was better than our consensus estimate of $22.02 billion (also read: Wells Fargo Beats Q3 Earnings on Higher Revenues).
Wells Fargo’s new CEO Tim Sloan will still face an uphill battle, and his company’s fraudulent account-opening scandal is certainly not going anywhere anytime soon. Nevertheless, today’s positive results will provide some comfort for the company and its investors.
All three stocks opened higher, with JPM and C gaining more than 2% and WFC up 1%, but they’ve been slumping back down throughout the day. Today’s morning gains have basically been wiped out.
For more news heading into the weekend, check out the latest episode of the Zacks Friday Finish Line podcast:
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>