Bank Earnings Preview: CitiGroup, JP Morgan, PNC Bank, Wells Fargo
Oct 10, 2023
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 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 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 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 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
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.