Bank of America (BAC), Morgan Stanley (MS) and Wells Fargo (WFC) reported better-than-expected third-quarter earnings Thursday, following JPMorgan Chase (JPM) topping on Wednesday. BofA, Morgan Stanley and Wells Fargo stock rose before the open.
After running up with Treasury yields, bank stocks have fallen in recent days as yields pull back.
Bank Of America Earnings
Estimates: Analysts expected Bank of America earnings per share to rise 40% to 70 cents on a 6.6% increase in sales to $21.68 billion.
Results: Bank of America earnings jumped to 85 cents a shares on revenue of $22.9 billion.
BofA reported $11.2 billion in net interest income, beating views. Investment banking fees climbed 23% to $2.2 billion.
Stock: BAC stock rose 2% before the open on the stock market today.
Wells Fargo Earnings
Estimates: Wells Fargo earnings per share was seen at 96 cents. That would more than. But revenue is seen slipping 3.7% to $18.2 billion.
Results: Wells Fargo came in at $1.17 a share, well more double the year-earlier figure, in which Wells Fargo had unusual expenses. Revenue fell 2.4% to $18.83 billion.
Stock: Wells Fargo stock rose 1% early Thursday.
Morgan Stanley Earnings
Estimates: Morgan Stanley earnings per share were seen coming in around $1.69, vs. $1.59 in the same quarter a year ago, on sales of $13.9 billion, 19% better than last year.
Results: Morgan Stanley earnings per share rose to $1.98 with revenue climbing to $14.75 billion.
Stock: Morgan Stanley stock rose 1.5% before the open.
JPMorgan Chase Earnings
Estimates: FactSet analysts expected JPMorgan earnings per share of $2.93, vs. $2.92 for the same period last year. Revenue was seen coming in at $29.8 billion, slightly below the year-ago figure of $29.9 billion.
Results: JPMorgan earnings per share popped to $3.74 a share. Revenue rose slightly to $30.44 billion.
JPMorgan released $2.1 billion from credit reserves, boosting EPS by 52 cents.
Equity trading revenue jumped 60%, offsetting a 30% fixed-income trading decline.
CFRA Research analyst Kenneth Leon says JPMorgan is “gaining wallet share in investment banking.”
Equity underwriting was up 41% year over year, while debt underwriting gained 3%, and mergers and acquisitions advisory fees swelled 187%.
However, consumer banking showed a 21% decline in card income.
Stock: Shares rose a fraction Thursday after slumping 2.6% to 161 on Wednesday. JPM stock has retreated back below a cup-with-handle buy point of 163.93, according to MarketSmith chart analysis. Shares hit a record 171.51 on Oct. 7.
Estimates: Views are for Citigroup earnings of $1.80 a share, 28% higher vs. year earlier, with sales down 1.8% to $16.98 billion.
Results: Check back Thursday.
Goldman Sachs Earnings
Estimates: Goldman Sachs earnings per share of $9.99, 3% above the year-ago quarter, on an 8% sales increase to $11.7 billion.
Results: Check back Friday.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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