Email not displaying correctly?View it in your browser
Financials Overview:
According to data from S&P Capital IQ, companies in the S&P 500 are expected to increase their earnings by an average of 6.6% this quarter and grow revenue by 4%. The projected earnings growth is well above the 3.4% figure reported last quarter and the rate of revenue expansion is expected to hold steady at 4%. Earnings expectations are more optimistic than they’ve been since the 4th quarter of 2011 and the stock market is near all time highs. While most sectors are slated for strong performances, the financials are an exception to the rule. Throughout the quarter analysts have taken down its earnings estimates for the banks across the board. Contributing analysts on the Estimize.com platform are expecting the financials to report weaker earnings compared to FQ2 of last year, but still manage to edge past the deflated estimates set by Wall Street.
First Up To the Plate: Citigroup (C)
The first bank reporting earnings next week will be Citigroup on Monday before the opening bell. Earnings estimates for Citigroup have fallen considerably over the previous 3 months as they have for the other banks as well. The latest analyst revisions have Citigroup reporting $1.20 in EPS, down from $1.25 in the same quarter of last year. At the same time revenue is expected to come in about 6% lower than the $2.5B reported in FQ of last year. Although a downturn in financial performance is expected, the Estimize community still forecasts that Citigroup will beat the Wall Street earnings consensus by about 3.5%.
Most Likely to Outperform: Goldman Sachs (GS)
Of the four major banks reporting earnings this coming week, contributing analysts on the Estimize.com platform expect Goldman Sachs to outperform the Wall Street consensus by the widest margin. According to Reuters, Goldman Sachs is the top M&A advisor in the world, and was involved in deals worth $623 billion this year alone. A robust mergers and acquisitions environment is likely to provide a boost to Goldman’s quarterly earnings.
The Estimize community is forecasting that Goldman Sachs will beat the Street’s consensus by 23c (7%) per share on earnings, and $478 million (6%) on revenue. Over the previous 2 years Goldman Sachs has beaten the Wall Street consensus in each quarter and over the same time horizon the Estimize consensus has been more accurate than Wall Street 7 times.
While the Estimize community is expecting a big beat from Goldman, contributing analysts are still not anticipating particularly strong financial metrics. The Estimize consensus is looking for a 13% drop in EPS compared to the same quarter of last year and a 1% decline in year over year revenue.
JP Morgan Chase (JPM)
JP Morgan Chase has surprisingly missed the Wall Street consensus on revenue for 3 quarters in a row now and has failed to meet expectations on EPS in the previous 2 quarters. The Estimize consensus for JP Morgan Chase this quarter is telling a similar story to Citigroup and Bank of America. Earnings are expected to come in subdued, but still ahead of the sell side estimates which have been slashed heavily throughout the quarter. The Estimize community is expecting JP Morgan Chase to come in 4c ahead of the Wall Street forecast on earnings per share and $372M (1.5%) on revenues.
Wrapping up the Week: Bank of America (BAC)
Bank of America missed its EPS target sharply last quarter, but did manage to report better than expected revenue. The Estimize community is forecasting that Bank of America will report 32c EPS, in-line with FQ2 results from last year. This makes Bank of America the only financial institution in our preview that is not expected to report declining earnings this quarter. Contributing analysts on the Estimize platform expect BAC to report roughly in-line with the Wall Street consensus, beating the EPS consensus by a penny per share and outperforming the Street’s revenue projection by $630M, or roughly 3% on both the top and bottom line.
PLEASE READ THIS NOTICE CAREFULLY BEFORE REVIEWING THE CONTENTS HEREIN.IN ALL CASES, INTERESTED PARTIES SHOULD CONDUCT THEIR OWN INVESTIGATION AND ANALYSIS OF THE COMPANY AND OF THE INFORMATION CONTAINED IN THIS DOCUMENT. NOTHING CONTAINED IN THIS DOCUMENT IS, OR SHALL BE RELIED UPON AS, A PROMISE OR REPRESENTATION BY ESTIMIZE OR ANY OF ITS ADVISORS AS TO THE PAST OR THE FUTURE PERFORMANCE OF ESTIMIZE. THE CONTENTS OF THIS DOCUMENT HAVE NOT BEEN INDEPENDENTLY VERIFIED BY THE COMPANY OR ANY OF ITS AFFILIATES, AGENTS, EMPLOYEES OR REPRESENTATIVES. THE COMPANY AND EACH OF ITS AFFILIATES, AGENTS, EMPLOYEES, OR REPRESENTATIVES EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY RELATING TO THE USE OF THIS DOCUMENT, OR SUCH OTHER INFORMATION AS MAY BE PROVIDED (WHETHER COMMUNICATED IN ORAL OR WRITTEN FORM), TO A PROSPECTIVE PURCHASER OR ANY OF ITS AFFILIATES, AGENTS, EMPLOYEES OR REPRESENTATIVES. ANY ESTIMATES, PROJECTIONS AND FORWARD – LOOKING STATEMENTS CONTAINED HEREIN (A) HAVE BEEN PREPARED BY, AND ARE BASED ON, INFORMATION CURRENTLY AVAILABLE TO THE COMPANY AND (B) INVOLVE SIGNIFICANT KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS, INCLUDING SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE UNCERTAINTIES AND SUBJECTIVE ASSUMPTIONS, JUDGEMENTS AND ANALYSES INCLUDING WITH RESPECT TO FUTURE BUSINESS DECISIONS, SOME OR ALL OF WHICH MAY CHANGE. NO REPRESENTATION OR WARRANTY CAN BE MADE AS TO THEIR ATTAINABILITY. ACCORDINGLY, ACTUAL RESULTS MAY DIFFER SUBSTANTIALLY AND MATERIALLY FROM THE ESTIMATES, PROJECTIONS AND FORWARD - LOOKING STATEMENTS CONTAINED IN THIS DOCUMENT AND THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE ANY OF THESE ESTIMATES, PROJECTIONS OR FORWARD – LOOKING STATEMENTS. ALL FINANCIAL INFORMATION CONTAINED IN THIS DOCUMENT SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING DISCUSSION POINTS. ONLY THOSE REPRESENTATIONS AND WARRANTIES TO THE EXTENT MADE IN A DEFINITIVE, WRITTEN PURCHASE AGREEMENT, SUBJECT TO SUCH LIMITATIONS AND RESTRICTIONS AS MAY BE SPECIFIED THEREIN, SHALL HAVE ANY BINDING OR LEGAL EFFECT.
| To unsubscribe please click here | Estimize Research 175 Varick Street, New York, NY, 10013 |
No comments:
Post a Comment