Releasing quarterly earnings this week are some of the major banks and finance institutions.
With shareholders looking to achieve record payouts this year from American companies – up to $1 trillion – the earnings session is forecasting mainly positive results. Consensus estimates are from Reuters analysts.
J.P. Morgan, reporting Tuesday
Estimated at $1.38 in earnings per share (EPS) on $24.40 billion in revenue.
Previous $1.19 per share, on revenue of $23.6 billion.
Consensus price target is $69.09, with a 52-week trading range is $52.97 to $63.49.
Since the start of the month, JPMorgan shares have risen by 2.6% even against a tide of legal expenses and pressure to split the huge bank into more manageable divisions. Much of the recent movement is from an announcement made by JPMorgan on 11 March regarding an equity repurchase programme to include shares repurchased to offset issuances under the Firm's equity-based compensation plans. The FED authorized the repurchase of up to $6.4 billion of common equity between April 1, 2015, and June 30, 2016.
Shares on Monday stand at 61.51.
Bank of America – reporting on Wednesday
Estimated at $0.29 in earnings per share and $21.51 billion in revenue.
Previous quarterly earnings from December $0.25 in earnings per share and $19.58 billion in revenue.
Consensus price target is $18.40, with a 52-week trading range of $14.37 to $18.21.
As seems to be the trend for American banks, BOA also announced on 11 March that the Board of Directors had authorized a $4 billion common stock repurchase programme. This was as a result of passing the 2015 Comprehensive Capital Analysis and Review initiated by the FED. However, flaws were acknowledged, with the Fed asking Bank of America to submit an additional capital plan by September 30, 2015 addressing certain weaknesses identified in the company’s capital planning process. If Bank of America does not make material progress in addressing these key weaknesses, the Fed may restrict the company’s capital distributions.
Since the start of April 2015, BOA shares have risen by 3% and currently stand at 15.67 on Monday.
Wells Fargo – reporting on Wednesday
Estimated at $0.98 in earnings per share EPS and $21.24 billion in revenue.
Previous for last quarter 2014 diluted earnings per share (EPS) of $1.02, with revenue of $21.4 billion.
Consensus analyst price target of $57.19 with a 52-week trading range of $46.44 to $56.29.
With over $1.7 trillion in assets, Wells Fargo is America’s largest bank by market cap. The bank passed the all-important FED stress test and announced in March 2015 that its capital plan would include a proposed dividend rate of $0.375 per share for the second quarter of 2015, subject to consideration and approval by its Board of Directors at its regularly scheduled meeting in April. The proposed dividend rate represents a 7% increase over the current rate of $0.35 per share.
Shares currently stand at $54.12, seeing little difference over the last month compared with 1 April price of $53.98.
MT4 chart: J.P. Morgan
MT4 chart: Bank of America
MT4 chart: Wells Fargo
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