Banking & Finance

Earnings Previews: BlackRock, Citigroup, JPMorgan, Wells Fargo

Analysts are expecting JPMorgan to report fourth-quarter revenue of $29.71 billion, up by less than 1% sequentially and 1.9% higher year over year. Adjusted EPS are forecast at $3.05, down 14.2% sequentially and down two cents year over year. For the full year, current estimates call for EPS of $14.97, up 76.6%, on revenue of $122.73 billion, or 2.7% higher.

JPMorgan stock trades at 11.2 times expected 2021 EPS, 14.0 times estimated 2022 earnings of $11.99 and 12.8 times estimated 2023 earnings of $13.14. The stock’s 52-week range is $127.35 to $1772.96. JPMorgan pays an annual dividend of $4.00 (yield of 2.39%). Total shareholder return for the past 12 months is 22.8%.

Wells Fargo

Wells Fargo & Co. (NYSE: WFC) is the nation’s third-largest bank (by market cap) and its share price has risen by about 72% over the past 12 months. The stock traded up by more than 17% in just the first two weeks of 2022. Investors are betting that the Federal Reserve will lift the $1.95 trillion asset cap imposed on the bank in 2018. That, coupled with expected interest rate increases, could deliver Wells Fargo from its three-year stay in purgatory and get it back to building its balance sheet.

Analysts are getting more bullish about Wells Fargo. Of 27 brokerages covering the bank, 11 have a Hold rating but 16 have a Buy or Strong Buy rating on the shares. At a share price of around $56.25, the upside potential based on a median price target of $57 is just 1.3%. At the high price target of $70, the upside potential is about 24.4%.

Analysts are expecting fourth-quarter revenue to total $18.62 billion, down about 1.1% sequentially but up about 3.8% year over year. Adjusted EPS are forecast at $0.99, down about 18.5% sequentially and up more than 41% year over year. For the full 2021 fiscal year, EPS are forecast to rise by more than 300% to $4.32 and revenue is expected to rise by 4.9% to $75.89 billion.

Wells Fargo stock trades at 13.0 times expected 2021 EPS, 15.1 times estimated 2022 earnings of $3.72 and 12.6 times estimated 2023 earnings of $4.48. The stock’s 52-week range is $29.68 to $56.71, and the high was posted Wednesday morning. Wells Fargo pays an annual dividend of $0.80 (yield of 1.457%), and total shareholder return for the past 12 months is about 68%.

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