US Earnings Preview: JP Morgan, Citi and Wells Fargo

Posted on | by Todd | Leave a Comment on US Earnings Preview: JP Morgan, Citi and Wells Fargo

Before the US market opens later today, JP Morgan, Citigroup and Wells Fargo will report their Q2 results.

After last year’s post-election rally, these stocks and others in the financial sector have been trading in wide ranges.

However, over the last few weeks, bank stocks have rallied after the results of the FED’s “stress tests”, a push higher in short-term rates and hopes of further government de-regulation.

For Q2, JP Morgan is expected to report earnings of $1.57 per share, up 2 cents from last year on revenue of $24.8 billion. Wells Fargo is expected to report earnings of $1.02 per share, which is up 1 cent from last year on revenue of $22.3 billion. Citigroup is expected to report earnings of $1.21 per share, which is 3 cents below last year on lower revenue of $17.3 billion.

Our base case for the US banks is that trading revenues will be trending lower for the remainder of the year and the current levels look fully-valued with risk to the downside.

JP Morgan

Citigroup

Wells Fargo

 

US Bank Earnings Exceeded Low Market Estimates

Posted on | by Leon Hinde | Leave a Comment on US Bank Earnings Exceeded Low Market Estimates

On Friday night JP Morgan, Citi and Wells Fargo all reported.

Wells Fargo’s profit dropped for a fourth straight quarter. JP Morgan and Citi beat low expectations, as strength in bond trading volumes picked up in the third quarter.

Citi Group outperformed expectations for third-quarter net profit after trading revenue surged 35 percent. Net income exceeded market expectations, (although fell 11%), coming in at $1.24 per share.

Citi Group (C.NYS)

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Well Fargo (WFC.NYS)

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JP Morgan (JPM.NYS)

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Investors will focus this week on the upcoming earnings results for  Goldman Sachs and Morgan Stanley.

Dow Jones

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In this month’s market strategy recording, we looked at the key levels in the S&P500 and the Dow Jones, with a focus on old resistance becoming new support. S&p500 earnings need to deliver on average, $30 – $32 per share to meet market expectations.

If you missed the recording this month, please sign up at www.investorsignals.com