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Earnings Reports On Tap: Bank Of America, Wells Fargo, JPMorgan EPS Estimates & Watch Guidance

|Includes: Bank of America Corporation (BAC), BLK, C, FITB, FRC, GS, HBAN, JPM, KBE, KBWD, KBWR, MS, OZK, PNC, SPY, USB, WFC, XLF

Summary

Let's hope Friday the 13th is good luck for Bank of America, Wells Fargo and PNC.

Blackrock and First Republic are the only financials reporting this week that missed their EPS estimates last quarter.

Bank of America is expecting a flat EPS from Q2, but the execs love to under promise and over deliver.

You've probably seen the dates already but here's a quick blog post with a compilation of the earnings schedule for the banking sector this week. 

  • Citigroup, Black Rock and PNC financial expect higher EPS versus last quarter. 
  • JPMorgan and Wells Fargo expect a lower EPS versus Q2.
  • Bank of America expects flat EPS growth in Q3.   

All in all the banks are not expecting a bang out quarter and I'm hoping Citi is not overpromising on their EPS. On the other hand, I have a feeling that JPMorgan and Bank of America are underpromising and hoping to overdeliver on their rather anemic estimates. Both banks have a habit of giving out conservative estimates. 

Wells Fargo will be important since we'll get the first glimpse of the scandal impact since the August report showed that executives underestimated the fraud by 57%. Hopefully, they'll beat, but watch guidance going forward because it could be ugly.  

In my opinion, I believe Q3 was challenging for banks given the summer's low volatility. Watch for mortgage growth and consumer lending to play heavily in since commercial lending typically takes a dip as most companies shut down for most of August. However, that's just my opinion from my experience from working in banking.

The September yield volatility surge and any pick up in new loans could help to soften the expected blows to trading revenue and net interest income. Hopefully, they'll be enough to give a bump to the quarterly numbers. 

Forward guidance: Watch for comments on Fed expectations, yield volatility, and overall higher long-term yields to play heavily in future guidance. 

I'll have more in-depth analysis as the week progresses. 

Good luck out there. 

OCTOBER 11 - WEDNESDAY

Black Rock (NYSE:BLK)

  • Estimates of $5.54 EPS from consensus forecasts; was $5.24 in Q2 and missed.

Bank of The Ozarks (OZRK)

  • Estimates of $.74 EPS from consensus forecasts; was $.73 in Q2 and met.

OCTOBER 12 - THURSDAY

Citigroup (NYSE:C)

  • Estimates of $1.30 EPS from consensus forecasts; was $1.28 in Q2 and a beat.

JPMorgan (NYSE:JPM)

  • Estimates of $1.65 EPS from consensus forecasts; was $1.82 in Q2 and a beat. 

OCTOBER 13 - FRIDAY 

Bank of America (NYSE:BAC)

  • Estimates of $.46 EPS from consensus forecasts; was $.46 in Q2 and a beat. 

Wells Fargo (NYSE:WFC)

  • Estimates of $1.03 EPS from consensus forecasts; was $1.07 in Q2 and a beat. 

PNC Financial (NYSE:PNC)

  • Estimates of $2.13 EPS from consensus forecasts; was $2.10 in Q2 and a beat. 

First Republic Bank (FRC)

  • Estimates of $1.16 EPS from consensus forecasts; was $1.06 in Q2 and missed. 

Thanks for reading. 

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.