Seeking Alpha

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.
  • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, PFI, KBWB, FNCL, FINU, RWW, RYF, PSCF, FINZ
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 (252) | 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 (9395) | 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 (490) | 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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