Bank Earnings Preview: CitiGroup, JP Morgan, PNC Bank, Wells Fargo
Bank Earnings Preview: CitiGroup, JP Morgan, PNC Bank, Wells Fargo
By:Mike Butler
Large banks are reporting earnings on Friday the 13th
- Citigroup is expected to announce EPS of $1.20 on $19.25 billion in revenue.
- Expectations for JP Morgan Chase are EPS of $3.89 on $39.31 billion in revenue.
- PNC Bank is expected to announce an EPS of $3.13 on $5.34 billion in revenue.
- Analysts expect Wells Fargo to announce an EPS of $1.23 on $20.10 billion in revenue.
Citigroup (C), JP Morgan Chase (JPM), PNC Financial Services Group, (PNC) and Wells Fargo (WFC) all report quarterly earnings on Oct. 13 before the stock market opens. Below are earnings previews for each.
Citigroup
Citigroup reports earnings at 7 a.m. Central Time (CT). The bank missed EPS estimates averaging $1.38 per share last quarter. This time around, the EPS bar is set at $1.20.
The stock has had an underwhelming 2023 and is down to $41.50 after starting the year at $45.75. The bank recently reported that it would sell its Chinese consumer wealth portfolio to HSBC in a withdrawal from Asia. The China portfolio is said to be near $3.6 billion. The stock set a 2023 low of $39.14 just a few days ago but has rallied since.
The weekly expected move for Citigroup stock based on current implied volatility that contains the earnings announcement is +-$1.47, which is about 3.5% of the stock price.
JP Morgan
JP Morgan reports earnings at 5:50 a.m. CT and has the strongest recent earnings history compared to the other banks in this article. And it's not even close.
The popular U.S. bank has beat EPS and revenue estimates four quarters in a row, and the past three quarters have resulted in an EPS surprise by at least 15%. The bank is expected to report an increase in both EPS and revenue this quarter.
JPM stock has climbed to $146, over $10 above the 2023 opening print of $135.24. It will be interesting to see just how much the interest rate hikes have impacted the banks this time around.
JP Morgan's stock price has an expected move of +-$4.56 this week, about 3% of the stock price.
PNC Financial Services
PNC reports earnings at 5:35 a.m. CT. It is one of the regional banks that have improved their balance sheet year over year through the volatility we've realized in the banking sector.
The stock has had a rough start to 2023, opening at $159.65 and dropping to the current price of $123 per share. With that said, the company has beaten EPS expectations three of the last four quarters, and interest rates are higher than ever. It will be interesting to see what happens with all these banks, and whether they all move to the upside or downside after reporting earnings.
PNC stock's weekly expected move is +-$4.88, which is about 4% of the stock price.
Wells Fargo
Wells Fargo reports earnings at 5:55 a.m. CT. It has beaten EPS expectations four quarters in a row and exceeded revenue expectations three of the past four quarters.
Like JP Morgan, Wells Fargo is expected to report a higher EPS figure than last quarter, moving from $1.15 to $1.23. But it is also expected to report a lower revenue figure than last quarter.
WFC stock opened 2023 at $41.61, and has sold off since then, currently sitting at $39.85 after a recent rally.
The stock's weekly expected move, which contains the earnings announcement, is projected to be +-$1.46 based on current implied volatility, which is 3.6% of the stock price.
Tune in to Options Trading Concepts Live at 11 a.m. CT on Thursday, October 12 for a look at all four of these bank stocks before they report earnings the morning after.
Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb
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