This past quarter the banking sector was one of the worst performing areas of the market as credit and recession fears came back into focus. Early next week traders may be able to determine whether these price declines are justified or whether they are without merit. Some of the most prestigious names in the financial services sector will be announcing their quarterly earnings and traders can bet on heavy volume in these stocks.
Straight to the Bank
Before the market opens on Monday, Wells Fargo & Co. (WFC) will announce its Q3 earnings. Wall Street is anticipating that the bank will report a 20.0% year-over-year improvement in EPS despite a 3.1% decline in total revenue.
Wells Fargo is coming off of a Q2 in which it achieved record quarterly net income as average checking and savings deposits rose 9% from the prior year. The company also experienced a notable decline in net loan charge-offs. WFC shares have retreated 13.0% on the year.
Also reporting before the opening bell on Monday is Citigroup (C). Analysts are calling for the company to announce a 17.1% increase in EPS and a 5.5% decrease in total revenue when compared to the year-ago quarter. Shares of Citigroup are down 38.3% so far this year.
Under Siege
The securities brokerage company Charles Schwab (SCHW) is slated to release its quarterly earnings on Monday of next week. Analysts are expecting the company to report a 90.0% surge in EPS when compared to the prior year quarter. Total revenue is projected to increase by 12.2% over the same time period. Shares of Schwab have faced a rocky road in 2011 as they have declined 26.5% year-to-date.
On Tuesday, prior to the market open, Bank of America (BAC) will check in with its Q3 results. The consensus among analysts is that the company will report EPS of $0.20 versus $0.27 in the prior year quarter. Total revenue is expected to decline by 2.9%.
Last month, CEO Brian Moynihan announced a reorganization of the company’s management structure in an effort to further streamline Bank of America’s operations. The move was part of the company’s new BAC initiative which is expected to run through March of next year. BAC shares have shed more than half of their value this year.
Our Trading Reports in this Article:
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
