Market Overview

More Big Banks In The Earnings Spotlight

More Big Banks In The Earnings Spotlight
  • Fourth-quarter results from the big banks have been unimpressive so far.
  • Analysts are looking for some earnings growth from Bank of America Corp (NYSE: BAC) this week.
  • Wall Street expectations are lower for Morgan Stanley (NYSE: MS) and Goldman Sachs Group Inc.

Citgroup, JPMorgan and Wells Fargo may have posted solid if unimpressive fourth-quarter results last week, but the question remains whether that trend will hold as more big banks report their earnings this coming week.

Bank of America, Morgan Stanley and Goldman Sachs Group Inc are among the many financial companies taking their turns on the earnings stage this week. The only one of these three Wall Street expects to see top and bottom line growth from is Bank of America.

Below is a quick look at what is expected from these three reports, as well as a peek at some others.

Bank of America

In its report early Tuesday, this leading money center bank is expected to report that earnings per share (EPS) came to $0.31, according to 103 Estimize respondents. That would be up from the $0.25 per share in the year-ago period. Note that Estimize underestimated EPS in the previous two quarters.

The Estimize consensus sees revenue totaling $20.60 billion for the fourth quarter. That is more optimistic than the almost 5 percent year-on-year rise to $19.86 billion projected by Wall Street, which also sees full-year revenue down marginally to $84.24 billion, but EPS surging more than 73 percent to $1.35.

Related Link: How Did The Big Bank Earnings Season Turn Out?

Morgan Stanley

The Wall Street forecast calls for this wealth and investment management giant to post fourth-quarter EPS of $0.39 and for revenue to have fallen more than 5 percent year-over-year to $7.59 billion. Their full-year estimate are $2.35 per share (up marginally) on $35.08 billion (up almost 3 percent).

The 43 Estimize respondents see things a little differently: EPS of $0.46 and revenue of $7.93 billion for the three months that ended in December. Note that EPS and revenue fell far short of the Estimize third-quarter forecast. Morgan Stanley will share its latest results before Tuesday's opening bell.

Goldman Sachs

The consensus of 71 estimates from Estimize indicates fourth-quarter results from this investment banking colossus will be $4.55 in EPS on revenue of $7.64 billion when it reports early Wednesday. That would compare to the $4.38 per share and $7.69 billion posted in the year-ago period.

The Wall Street analysts are more pessimistic, pegging earnings for the quarter at $3.56 per share (60 days ago that estimate was $4.73) and revenue at $7.14 billion. Note that, here too, the Estimize forecast overestimated both top and bottom line results back in the third quarter.

And Others

Other financial companies that Wall Street analysts expect to show earnings growth this week include Bank of New York Mellon, Citizens Financial, E*Trade Financial, First Horizon National, Huntington Bancshares, M&T Bank, SLM and SunTrust Banks.

EPS at KeyCorp will be the same as a year ago, if the consensus forecasts are correct.

And earnings declines are predicted for American Express, BB&T, Comerica, Fifth Third Bancorp, Northern Trust, Synchrony Financial, TD Ameritrade and Travelers Companies.

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