Financials Report This Week: Citi And JPMorgan Kick Off The Big Banks' Earnings Tuesday Morning

Summary

• If there’s a beaten-down “non-correlated” (or uncorrelated) asset class to the S&P 500’s bull market, it’s the Russell 2000 Value segment, and the biggest concentration within that asset class is financials.
• Citigroup reports on July 15th before the opening bell, and analyst consensus coming into the Q2 earnings release is expecting $1.60 in EPS on $20.98 billion in revenue, for expected year-over-year growth of 5% and 4% respectively.
• JPM trades at 15x-16x earnings for expected high-single digit EPS growth over the next 3 years, while it likely can still generate high-teens, low-20% ROTCE or ROE.
• Most analysts do a poor job estimating JPM’s forward earnings per share. Forward EPS estimates are typically low-balled by the Street. When the market conditions are right, JPM can produce healthy upside surprises.

MCCAIG

One quick note

FB Financial (NYSE:FBK), a small-cap bank ($2 bl market cap) reports Monday night, July 14th, after the close. The net revenue estimate is just $135 million per LSEG, and total annual net revenue this year is expected at $600 million, with an annual