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Will Deutsche Bank (DB) Decline Further Post Q3 Earnings?
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Deutsche Bank AG (DB - Free Report) is scheduled to report third-quarter 2017 results on Oct 26.
In the last reported quarter, the German banking giant reported net income, driven by cost management and reduction in provisions. However, lower revenues due to trading slump were an undermining factor.
Notably, for the three-month period ended Sep 30, 2017, Deutsche Bank declined around 2.9% on the NYSE, reflecting investors' concerns over revenue performance of the bank with low volatility and interest rates in Europe.
Will the upcoming earnings release further drag down Deutsche Bank stock? It depends largely on whether the company is able to report profitability this earnings season. Let's see which factors might have influenced the earnings report this time around.
Factors to Influence Q3 Results
During the third quarter, trading environment was disappointing as markets experienced low volatility due to several factors. The bank’s revenues are likely to face fixed-income trading slump. Moreover, trading in equities is expected to witness a downtrend due to decreased client activities.
The global M&A industry remained upbeat during the third quarter with continued momentum in investment banking. Per the Thomson Reuters data, the total deal value of announced M&As across the world increased during the quarter. Debt underwriting was strong as well, while equity underwriting seems to have declined.
Therefore, the bank’s revenue challenges should ease slowly as it is expediting on a series of additional actions and new financial targets.
Though Deutsche Bank remains focused on expense management, it has been embroiled in several lawsuits and investigations. As a result, some additional reserves for litigation expenses might have been sidelined, which could hurt the bottom line to some extent. In addition, the quarterly results are anticipated to display the impact of several ongoing restructuring measures. Restructuring and severance charges, as such, might remain high.
Among other foreign banks, Mitsubishi UFJ Financial Group, Inc. , Itau Unibanco Holding S.A. (ITUB - Free Report) and The Royal Bank of Scotland Group plc are scheduled to report results on Nov 14, Oct 30 and Oct 27, respectively.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Will Deutsche Bank (DB) Decline Further Post Q3 Earnings?
Deutsche Bank AG (DB - Free Report) is scheduled to report third-quarter 2017 results on Oct 26.
In the last reported quarter, the German banking giant reported net income, driven by cost management and reduction in provisions. However, lower revenues due to trading slump were an undermining factor.
Notably, for the three-month period ended Sep 30, 2017, Deutsche Bank declined around 2.9% on the NYSE, reflecting investors' concerns over revenue performance of the bank with low volatility and interest rates in Europe.
Will the upcoming earnings release further drag down Deutsche Bank stock? It depends largely on whether the company is able to report profitability this earnings season. Let's see which factors might have influenced the earnings report this time around.
Factors to Influence Q3 Results
During the third quarter, trading environment was disappointing as markets experienced low volatility due to several factors. The bank’s revenues are likely to face fixed-income trading slump. Moreover, trading in equities is expected to witness a downtrend due to decreased client activities.
The global M&A industry remained upbeat during the third quarter with continued momentum in investment banking. Per the Thomson Reuters data, the total deal value of announced M&As across the world increased during the quarter. Debt underwriting was strong as well, while equity underwriting seems to have declined.
Therefore, the bank’s revenue challenges should ease slowly as it is expediting on a series of additional actions and new financial targets.
Though Deutsche Bank remains focused on expense management, it has been embroiled in several lawsuits and investigations. As a result, some additional reserves for litigation expenses might have been sidelined, which could hurt the bottom line to some extent. In addition, the quarterly results are anticipated to display the impact of several ongoing restructuring measures. Restructuring and severance charges, as such, might remain high.
Deutsche Bank AG Price
Deutsche Bank AG Price | Deutsche Bank AG Quote
Currently, Deutsche Bank currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other foreign banks, Mitsubishi UFJ Financial Group, Inc. , Itau Unibanco Holding S.A. (ITUB - Free Report) and The Royal Bank of Scotland Group plc are scheduled to report results on Nov 14, Oct 30 and Oct 27, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>