24/7 Wall St. has put together a preview of some of the major companies reporting their quarterly results this week. We are just entering into earnings season in which most major companies will report and set a direction for the market. We have included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.
The main companies reporting this week are banks, which always kick off the earnings season. Although only three major banks are reporting on this shortened trading week, the rest will be coming very shortly.
Currently, bank fundamentals are stuck in a tight spot, considering the still-slow economy and policy uncertainty weighing on loan growth, as well as higher rates affecting mortgage origination volumes. However, there is a positive side. Higher rates are helping net interest margins, credit quality remains excellent and capital return is expected to be higher again in this year’s Comprehensive Capital Analysis and Review (CCAR) stress test process.
As a result, one key analyst thinks that first-quarter results will not be mind-blowing, but instead believes estimates are still biased upward as more rate hikes get built in, deposit betas remain low and credit loss/provision levels prove lower-for-longer. After considering the current climate for banking stocks, Jefferies picked out a couple of its top ideas going forward.
Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.
Citigroup Inc. (NYSE: C) is scheduled to reveal its first-quarter results on Thursday. The consensus estimates call for $1.24 in earnings per share (EPS), as well as $17.83 in revenue. Shares ended trading at $59.43 on Friday. The consensus analyst price target is $64.74. The stock has a 52-week trading range of $38.31 to $62.53.
JPMorgan Chase & Co. (NYSE: JPM) is set to report its first-quarter results on Thursday. The analysts’ consensus estimates call for EPS of $1.52 and $24.88 billion in revenue. Shares were changing hands at $86.18 on Friday’s close. The consensus price target is $91.22, and the stock has a 52-week range of $57.05 to $93.98.
Wells Fargo & Co. (NYSE: WFC) also is expected to report its most recently quarter results on Thursday. The consensus analyst estimates call for $0.97 in EPS and revenue of $22.3 billion. Shares of Wells Fargo closed at $54.84 on Friday. The consensus price target is $59.07. The 52-week trading range is $43.55 to $59.99.