Earnings season kicked off this week, with a couple of big names reporting. However, next week, after the Martin Luther King Jr. Holiday, we get a lot of major names. I will be analyzing 18 key names reporting earnings next week. In part one of a three part series, I cover the financial sector. Expectations have been coming down on the financials every week, with estimates being slashed left and right. Fourth quarter revenues are expected to be soft. However, there has been recent optimism in the sector, which has sent the sector shooting higher. Next week's earnings, along with JPMorgan (JPM) on Friday the 13th, will determine if they continue to rise, or if the new lows could again be retested.
Citigroup (C) - Tuesday, before bell: Citigroup is one of two big banks that will report Tuesday morning. In their fiscal fourth quarter, revenues are expected to rise slightly 1.1% to $18.57 billion. Earnings per share are expected to increase to 48 cents a share from 40 cents in the year ago period. However, as many know, those estimates have come way down. Three months ago, they were expected to post a 90 cent profit. For the full year, revenues are expected to decline by 8% to just under $80 billion. Earnings per share are expected to increase from $3.50 to $3.81. Citigroup has beat expectations in the past three quarters.
Wells Fargo (WFC) - Tuesday, before bell: Wells Fargo will also report Tuesday morning. Their fourth quarter revenues are expected to decline by 6.6% year over year to $20.08 billion. Earnings per share are expected to rise 11 cents to $0.72. For the full year, revenues are expected to decline by 5.4% to $80.61 billion. Earnings per share are expected to rise from $2.21 to $2.82. Wells Fargo is one of the only names whose estimates have not been cut severely over the past few months.
Goldman Sachs (GS) - Wednesday, before bell: Goldman is expected to have a terrible quarter, with revenues dropping 23% to $6.65 billion in the fourth quarter. Earnings per share are expected to drop even further, from $3.79 a year ago to $1.33. Goldman has seen a massive amount of analyst revisions, all to the negative side. For the full year revenues are expected to decline by 23% to $30.15 billion. Earnings per share are expected to drop sharply, from $13.18 in 2010 to just $4.92 in 2011. Shares closed above $100 on Thursday for the first time in a month, and just the fourth time in the past two months.
Bank of America (BAC) - Thursday, before bell: Despite all of the mortgage problems and other issues the company is facing, Bank of America is actually projected to see revenues rise 6.6% to $23.87 billion. Earnings per share are expected to increase from 4 cents to 22 cents, however, a couple of analysts have said they wouldn't be surprised if the company posted a loss this quarter. For the full year, Bank of America is expected to post a 14% decline in revenues to $94.33 billion. Earnings per share are expected to drop from $0.86 to $0.11, and the company could post a yearly loss if they miss in the 4th quarter. Bank of America saw $7 on Thursday for the first time since late October, but could not hold that price level and traded lower throughout the day.
Morgan Stanley (MS) - Thursday, before bell: Morgan Stanley is expected to see the largest drop in revenues, a 26% decline to $5.75 billion. The company is also expected to post a loss in the quarter. Analysts currently expect a 56 cent loss, compared to last year's 43 cent gain in the quarter. For the full year, revenues are expected to rise slightly, by 3.1% to $32.59 billion. However, earnings are expected to drop sharply, from $2.44 a share to just $0.82 per share. Despite all of the negativity, Morgan Stanley has beat estimates by large amounts in the past four quarters.
American Express (AXP) - Thursday, after bell: The credit card name will be the first of its peers to report when it does next week. The company is expected to see an 8.2% rise in revenues to $7.92 billion. Earnings per share are expected to rise by a dime to $0.98. For the full year, revenues are expected to rise 8% to just over $30 billion. Earnings per share are expected to jump from $3.35 to $4.08. The credit card names are expected to continue decent growth in 2012 as well.