In 2021, we expect to see a year of high expectations for earnings growth as we exit 2020, which saw growth rates plummet during the first three quarters to levels not seen since the 2008 crisis. The earnings growth forecast for 2021 is currently 25.9%, the highest since 2010. In a typical quarter, year-over-year (YoY) growth expectations decline by an average of 3.5 percentage points (ppts) from the start of the quarter to the start of earnings season. Seeing an increase in growth expectations heading into earnings season is fairly uncommon, but we have seen exactly this behavior for the

The unofficial kickoff to the 20Q3 earnings season occurred today, Oct. 13, when the S&P 500 banks industry’s Citigroup Inc (C.N), First Republic Bank (FRC.N), and JPMorgan Chase & Co (JPM.N), delivered quarterly results. Analysts had been expecting declines in both net interest income (NII) and net interest margin (NIM) for the banks industry. However, expectations were too high for the large diversified banks sub-industry constituents, as both Citigroup and JPMorgan missed analysts’ expectations for these metrics. Citigroup reported NII of $10.49 B vs. the consensus of $10.61 B and NIM of 2.03% vs. an expectation for 2.17% while JPMorgan

Banks unofficially kicked off 19Q3 S&P 500 earnings season.  The ‘big six’ finished reporting earnings (JPMorgan, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley).  As a group, earnings growth rate declined 0.7% YoY, while revenue growth increased 2.3%. Exhibit 1: Earnings and Revenue growth forecasts Goldman Sachs led the decline with earnings and revenue growth of -23.7% and -3.7% respectively.  Investment Banking revenues were down 15% YoY, while Financial Advisory revenues were down 22% YoY, but sentiment on future M&A activity was positive, particularly in health care and natural resources.  “The operating environment in the third quarter remained

The unofficial kickoff to the 19Q3 earnings season initiates Oct. 15, when the S&P 500 banks industry’s Citigroup Inc (C.N), First Republic Bank (FRC.N), JPMorgan Chase & Co (JPM.N), and Wells Fargo & Co (WFC.N) deliver quarterly results. Analysts have been increasingly bearish on banks heading into 19Q3 earnings season, and currently expect the S&P 500 banks industry to see 19Q3 YoY earnings decline 1.2%, net interest income to increase 0.6%, and net interest margin to contract 9.9 bps to 2.67%.  

Earnings season for the third quarter of 2019 is around the corner. The S&P 500 is expected to see the first year-on-year (YoY) decline since 2016 and investors’ attention will soon turn to the banks industry. The group is the first to report earnings, marking the unofficial start to earnings season. Heading into the reporting period, a trend has emerged among the banks; analysts have become more bearish and have consistently made downward revisions to estimates. Exhibit 1: S&P 500 19Q3 YoY Earnings and Revenue Analysts are cutting Q3 2019 earnings estimates ahead of earnings season. YoY revenue growth expectations

In the face of geo-political tensions, market volatility, and high expectations for earnings investors have been on the edge of their seats awaiting corporate earnings. The highly anticipated earnings season for the first quarter of 2018 unofficially kicked off Friday, Apr. 13, when four of the large banks reported earnings. The S&P 500 is expected to benefit from global growth and tax reform. As a result, the index is expected post the best first quarter YoY revenue and earnings growth since 2011 Q1. Exhibit 1: S&P 500 YoY Growth Rates Amplified Growth S&P Q1 2018 YoY earnings expectations for the

The unofficial kickoff to the Q1 2017 earnings season is set for Apr. 13, 2017, when several of the Financials sector’s banks are expected to report results for the quarter. Heading into the quarter, year over year (Y/Y) growth is expected to be strong for both earnings and revenue. As a result, the S&P 500 will likely post the highest growth in over 5 years.   Exhibit 1. S&P 500 Banks Industry 17Q1 Key Performance Indicators Sources: I/B/E/S data, Eikon Banks in Focus With the S&P 500 Banks Industry Index (.52P40101010) down 1.69% YTD, as of the Apr. 12 close, focus