SG&A costs, excluding non-cash compensation expenses, are expected to be near the low end of the $15M-$16M guidance range provided on last quarter's conference call.
Flotek (NYSE:FTK) anticipates its revenues in its Energy Chemistry Technologies segment to be in the $54M-$56M range and in its Consumer and Industrial Chemistry Technologies segment to be in the $17M-$18M.
"While we are still in the process of finalizing and reviewing our fourth quarter financials... we do anticipate a tax consequence in our deferred tax asset as a result of the recent changes to the U.S. corporate tax rate to 21%," said CEO John Chisholm.
BP -1.4% premarket after announcing it would take a post-tax non-operating charge of around $1.7B in its fourth quarter results as part of the 2010 Deepwater Horizon disaster.
Meanwhile, Ericsson (NASDAQ:ERIC) said it would take writedowns of $1.8B following the impairment testing of its businesses, as well as suffering a $125M non-cash charge due to recent U.S. tax reform. ERIC -0.4% premarket.
Q4 net income of $6.2B or $1.16 per share vs. $5.3B and $0.96 a year ago. This year's quarter, however, was boosted by $3.35B or $0.67 per share after-tax from the tax bill, as well as an $848M or $0.11 per share pretax gain from the sale of the Wells Fargo Insurance. Offsetting was a $3.25B or $0.59 per share pretax litigation charge. Adding it all up sounds like a miss vs. non-GAAP estimates for $1.06. Revenue of $22.1B was light by $240M as well.
Net interest margin of 2.84% slips two basis points from Q3, and three from a year ago. The decline is attributable to one-time effects from the tax law.
As for taxes, the bank's full-year 2017 tax rate was 18.1%, and it's expected to be 19% in 2018.
Loan growth looks like it's returned, with year-end total loans of $956.8B down $11B from a year ago, but up $5B from Q3 (first quarterly rise this year).
Net loan charge-offs of $751M or 0.31% of all loans vs. $717M and 0.30% in Q3. Total NPAs of $647M vs. $512M.
Checking retail banking, average deposits of $738.1B were up about $3.5B for the quarter and about $28B for the year. Primary consumer checking account customers edged higher on a Y/Y basis. Debit card POS purchase volume up 6% Y/Y; credit card purchase volume also up 6%. Home lending originations of $53B fell $6B during quarter.
JPMorgan (NYSE:JPM) in Q4 booked a $143M mark-to-market loss in its equities unit on a margin loan to an unidentified customer. That loss turned what would have been a 12% Y/Y rise in equities revenue to a flat quarter.
Bloomberg is reporting that client as troubled South African retailer Steinhoff, whose stock plunged in early December after disclosing accounting issues.
Concerned more with underlying trends in the bank's business, Hedgeye bull Josh Steiner is liking what he sees, noting overall revenue growth was up Q4 vs. Q3 despite a plunge in FICC revenue. Loan growth was higher as well, as was NIM, which rose to 2.42% vs. 2.37% a quarter ago, and 2.22% a year ago.
Shares are currently flat in active premarket trading.
Q4 net income of $2.4B or $1.07 per share vs. $6.7B and $1.71 a year ago. This year's result, however, includes a $2.4B negative impact from the new tax bill. Backing that out, Q4 earnings would have been flat from last year, and EPS was $1.76, up a nickel Y/Y, and topping estimates by $0.07.
$6.7B returned to owners in Q4 - $4.7B of buybacks and $0.56 per share dividend.
Among Consumer & Community Banking items, provisions of $1.231B were up 30% Y/Y, with a net reserve build this year vs. a sizable release a year ago. Behind the build was $200M in credit cards, driven mostly by loan growth.
Among Corporate & Investment Bank items, FICC revenue plunged 34% Y/Y (or 27% if excluding the impact of the tax bill). Estimates had been for a drop in the high teens.
Tangible book value per share of $53.56, up 4%. CET 1 ratio of 12.1%.