Financial Sector Earnings Preview

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 |  Includes: IYF, XLF
by: TickerSense

Earnings for the financial sector begin next week, with FNM reporting on Monday before the open. Friday's Wall Street Journal ran a column on increased ambiguity and uncertainty regarding these companies' balance sheets. It has been our contention that investors and the market have been, and are still in, a "wait and see" environment. Financial earnings estimates have been reduced over the previous two months, but as the WSJ points out, calculating their estimates is no simple task.

The financial earnings will be a telling indicator of subprime impact, and with a rate decision coming in the same week we certainly expect volatility to continue.

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Below are the financial companies with the largest decreases in EPS estimates, sorted on sector impact.