After the implosion of IndyMac Bancorp (NYSE: IMB) and news of the deterioration of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) last week, there's bound to be a certain level of trepidation as the earnings crunch begins this coming week and many big financial companies report. Here's a look at what Wall Street was expecting (see The week in preview: Expectations as the earnings crunch begins for expectations of other reporting companies.)
Analysts surveyed by Thomson Financial are expecting the following of companies to report lower earnings when compared to the same period of the previous year.
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JPMorgan Chase & Co. (NYSE: JPM): 44 cents EPS (-63.3%) on sales of $16.4 billion (-13.2%)
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Comerica Inc. (NYSE: CMA): 51 cents EPS (-59.2%) on sales of $680.2 million (-7.3%)
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Zions Bancorp. (NYSE: ZION): 75 cents EPS (-47.6%) on sales of $627.3. million (+2.7%)
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Huntington Bancshares Inc. (NYSE: HBAN): 23 cents EPS (-32.4%) on sales of $617.1 million (+50.7%)
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Capital One Financial Corp. (NYSE: COF): $1.31 EPS (-30.7%) on sales of $4.4 billion (+7.8%)
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Wells Fargo & Co. (NYSE: WFC): 50 cents EPS (-25.4%) on sales of $10.7 billion (+7.7%)
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M&T Bank Corp. (NYSE: MTB): $1.50 EPS (-23.1%) on sales of $756.6 million (+1.6%)
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BB&T Corp. (NYSE: BBT): 69 cents EPS (-16.9%) on sales of $1.8 billion (+5.9%)
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U.S. Bancorp (NYSE: USB): 60 cents EPS (-7.7%) on sales of $3.8 billion (+8.3%)
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PNC Financial Services Group Inc. (NYSE: PNC): $1.16 EPS (-7.2%) on sales of $1.9 billion (+8.5%)
Some financial companies are expected to report that they swung to a loss in the past quarter:
- CIT Group Inc. (NYSE: CIT): $3.41 per share (from $1.28 EPS) on sales of $585.7 million (-26.9%)
- Merrill Lynch & Co. (NYSE: MER): $1.91 per share (from $2.24 EPS) on sales of $3.3 billion (-66.4%)
- Marshall & Ilsley Corp. (NYSE: MI): $1.56 per share (from 84 cents EPS) on sales of $624.1 million (-33.6%)
- Citigroup Inc. (NYSE: C): 59 cents per share (from $1.24 EPS) on sales of $17.7 billion (-33.5%)
- First Horizon National Corp. (NYSE: FHN): 8 cents per share (from 17 cents EPS) on sales of $546.7 million (+5.2%)
But not all is doom and gloom. Analysts are expecting earnings growth from a few financials.
- State Street Corp. (NYSE: STT): $1.36 EPS (21.3%) on sales of $2.6 billion (+34.4%)
- Bank of New York Mellon Corp. (NYSE: BK): 75 cents EPS (16.0%) on sales of $3.9 billion (+9.3%)
- Northern Trust Corp. (NYSE: NTRS): $1.05 EPS (12.4%) on sales of $1.0 billion (+14.4%)
Given the key role that big banks have played in the downturn of the economy, as well as frequent discouraging market news, analysts' sentiment about the sector is probably no real surprise. The important question is whether the companies above can top these expectations. A few positive surprises could go a long way toward soothing some frayed nerves. Do you think that's likely to happen?
For a more encouraging look at expectations for nonfinancial companies reporting this week, see The week in preview: Expectations as the earnings crunch begins.
Visit AOL Money & Finance for more earnings coverage.
[Updated to add Merrill Lynch.]
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Reader Comments (Page 1 of 1)
7-13-2008 @ 1:20PM
suprg1969 said...
Why was Bank of America overlooked in this article is someone being paid off not to report their losses!
7-13-2008 @ 5:00PM
merrill suhr said...
MSFT LOOKS LIKE ITS HEADED FOR A GOOD QUARTER IF THEY PAID A 3.5% 4% DIVIDEND THE STOCK WOULD BE IN THE 30s
7-13-2008 @ 4:57PM
Linville Burns said...
Could be because the article is about companies that report earnings (or losses) next week, but BAC doesn't report until later in the month.