JPMorgan Wells Fargo

The second quarter earnings will be released tomorrow, Friday 13 July, for two major banks JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Company (NYSE:WFC). Here is a roundup of what the analysts are saying:

JPMorgan Chase Q2 2012 Preview

715 of the analysts grade JPMorgan Chose & Co. (NYSE:JPM) with a buy status. The collective predictions of analysts and trends to watch for are:

  • Analysts expect the US bank to post earnings of 79-81 cents/ share, this is approximately 38% less from the previous year when reported earnings were $1.27/share
  • The revenues are expected to fall 28.3% year-over-year to $21.91 billion for the quarter. This would amount to a 20% fall from the last year.
  • Final losses on trades are expected to fall between $4 billion to $6 billion for this quarter
  • The bank has shown consistent drop in income for last three quarters. The income fell 3.5% in the third quarter of last fiscal year.
  • The revenues of the bank showed increase of 3.4% (Q1 2012) when compared to corresponding quarter of 2011.

This year has not gone too well for the biggest bank of the US. JPMorgan Chase & Co. (NYSE:JPM) suffered multi-billion dollar losses in a bad hedge.  JPMorgan had earnings per share of $1.31 for the first quarter of the year. However, analysts will be eyeing the size of the loss and statements from CEO Jamie Dimon about it. Tomorrow is also the deadline for JPMorgan Chase & Co. (NYSE:JPM) to submit all documents related to energy market manipulation scandal.

Wells Fargo Q2 2012 Preview

Wells Fargo and Company (NYSE:WFC) reported good first quarter results, this marked the seventh quarter in which the bank showed consistent rise in net income.  The price to earnings ratio is higher for the bank, than most other banks, but WFC is known to take less risk. Wells Fargo and Company (NYSE:WFC) has managed to outperform other competing banks like JPMorgan Chase & Co. (NYSE:JPM) and Citigroup, Inc. (NYSE:C) over the past six months. The analysts’ predicted earnings for this quarter are:

  • Wells Fargo and Company (NYSE:WFC) is expected to post earnings of 81 cents/share compared to 70 cents/share profit in corresponding quarter of last year
  • Total predicted revenue will be $21.4 billion compared to 20.4 billion for last year
  • This quarter’s forecast has earnings per share up about 14 percent year-over-year
  • Wells Fargo and Company (NYSE:WFC) fell behind the earnings per share estimates in only one of the past five quarters and exceeded expectations in the first quarter with a rise of 2.7 percent.
  • 21 out of 25 analysts rate the stock with a buy status.

The banks releasing their second quarter earnings next week are Bank of America Corp (NYSE:BAC), Citigroup, Inc. (NYSE:C) and Goldman Sachs Group Inc. (NYSE:GS). We will be following up on those as well shortly.