BB&T (NYSE:BBT) is expected to report Q1 earnings on Friday, April 17 before the market open with a conference call scheduled for 11:00 am ET.
Analysts are looking for EPS of 31c on revenue of $1.90B. The consensus range is 18c-46c for EPS, and revenue of $1.85B-$1.96B, according to First Call.
Goldman Sachs downgraded BB&T to Conviction Sell from Sell on April 1. The firm, which set a $14 target for the shares, added BB&T to its Conviction Sell list because of the bank's high exposure to residential construction and its exposure to the Southeast economy, among other reasons. Several commentators have also issued negative assessments of large banks in recent weeks. The U.S. banking system is "basically insolvent," billionaire investor George Soros said, according to CNBC. Banks will have to further write down the value of their holdings as they compute their Q1 results because they haven't accounted for the entire reduction in home values yet, Meredith Whitney told Forbes.
Lenders are also seeing fewer loans get repaid, and their unemployment estimates are too low, added Whitney, who said she would still avoid bank stocks. Finally, CLSA analyst Mike Mayo initiated BB&T with a Sell rating and the entire banking sector with an Underperform rating. Mayo, who cited an increase in the amount of problematic loans as the main reason for his ratings, believes banks' loan losses may exceed Great Depression levels. However, Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM) have both reported better than expected results, while Regions Financial (NYSE:RF) said that it would report a Q1 profit.