How Did The Big Bank Earnings Season Turn Out?
After the highly-anticipated first Federal Reserve interest rate hike of the new tightening cycle finally happened in December, bank investors are hoping that rising rates will begin providing a boost to big bank margins. Here’s a look at how Q4 bank earning season has played out this week and what to expect when it continues next week.
JPMorgan Chase & Co. (NYSE: JPM) announced Q4 EPS of $1.32 on revenue of $23.74 billion, beating consensus estimates of $1.26 and $22.84 billion, respectively. The market wasn’t impressed, however, and the stock is down 3.5 percent this week.
Citigroup Inc (NYSE: C) announced Q4 EPS of $1.06 on revenue of $18.63 billion. Beating consensus estimates of $1.04 and $17.80 billion. Citi’s stock also took a hit this week, down more than 6.5 percent.
Wells Fargo & Co (NYSE: WFC) reported Q4 EPS of $1.03 on $21.58 billion in revenue. The reported EPS beat consensus estimates by a cent, but revenue fell short of consensus predictions of $21.69 billion. The stock is down only 0.7 percent on the week, however.
Related Link: What Are Suppliers Saying About Apple's Q4 Demand?
Bank of America Corp (NYSE: BAC) and Morgan Stanley (NYSE: MS) are expected to report on January 19 and Goldman Sachs Group Inc (NYSE: GS) is expected to report on January 20. If the three banks that have already reported are any indication, it will take some big numbers for these banks to impress the market.
Disclosure: the author owns shares of Bank of America.
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