Bank estimates cut at Sterne Agee


Growth over the last several quarters has been between 15-20%, says the team, but a major slowdown to a decline of 3-5% in now expected in Q1 (results begin coming in this week). The reasons are the usual suspects: Weak mortgage banking, weak capital markets, and legal and regulatory issues that are going nowhere.

Among the banks whose estimates are cut is Bank of America (BAC), now seen earning just $0.02 per share in Q1 from $0.30 previously. For all 2014, EPS should be $0.98, down from $1.06 originally forecast.

Other cuts of note: JPMorgan (JPM) now expected to earn $1.30 in Q1 from $1.36. U.S. Bancorp (USB) at $0.72 vs. $0.75. First Horizon (FHN) $0.13 vs. $0.16, and CVB Financial (CVBF) $0.23 vs. $0.24.

Having its EPS estimate boosted is Wells Fargo (WFC) to $0.94 from $0.90.

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Comments (5)
  • SA_Member_12759281
    , contributor
    Comments (29) | Send Message
     
    This recap fails to mention that .21 of the .28 estimate reduction for BAC is due to the legal putback from the FHFA settlement i.e. a one-time charge. No impact on income going forward.

     

    This recap implies the brunt of the reduction is due to deterioration of the macro environment, which is simply not the case.
    8 Apr 2014, 01:49 PM Reply Like
  • DoowopDave
    , contributor
    Comments (253) | Send Message
     
    Agreed. Further, this analyst is slow to cut estimate. Just about everyone else had already cut and the reduction is already baked into the price.
    8 Apr 2014, 01:53 PM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
     
    keep us up to date!
    that's a laugh, little late to the party!
    8 Apr 2014, 02:19 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11225) | Send Message
     
    One of these days an analyst will have an accurate prediction regarding BAC earnings.

     

    http://bit.ly/Q0x3mz
    8 Apr 2014, 04:04 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (694) | Send Message
     
    The banks are making more money this year than any year in the history of the world so this does not fly. Super long BAC.
    8 Apr 2014, 08:37 PM Reply Like
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