The financial sector kicks off the 2013 Q2 earnings report season on July 12 with much-anticipated numbers from JP Morgan Chase (JPM) and Wells Fargo & Co (WFC) . Along with Citigroup (C) and Bank of America (BAC), who report on July 15 and July 17 respectively, the reports look rosy, as many analysts believe a recovery from the housing debacle of the late aughts is already under way. FactSet predicts of all sectors in the S&P, the financials sector will grow the most, with a robust 16.8% gain.
Here’s what analysts expect to hear from the two financial giants:
JP Morgan Chase
The first to announce earnings, JP Morgan is considered a bellwether of the financial sector. FactSet expects JP Morgan to earn $1.44 a share, up 18 percent from last year. JPMorgan CEO Jamie Dimon seems exceptionally confident in his own company’s chances. He told investors on June 11 that the bank’s trading revenue will rise by at least 15 percent from $4.5 billion in the same quarter last year.
Zacks expressed confidents they will beat earnings expectations, citing rapid “cost containment.” That is, JP Morgan is set to lay off as many as 17,000 workers by the end of 2014. Zacks puts their earnings per share at between $1.42 and $1.45 a share, and predicts a “likely earnings surprise.”
JP Morgan’s earnings report comes out before the bell on July 12.
The country’s largest mortgage originator is especially buoyed by positive news from the housing market. And although mortgage interest rates are rising, housing sales have been gaining, and home prices ticked up 1.2 percent this June.
Thomas Reuters predicts that Well Fargo will post earnings per share growth for the 13th consecutive quarter. They do however, recommend watching to see if the historically low mortgage rates of the second quarter end up weighing down their earnings.
Zacks predicts Wells Fargo will also outdo its earnings expectations. Zacks puts them at 92 to 93 cents a share, with a “likely earnings surprise.”
Wells Fargo is also releasing their Q2 earnings report before the bell on July 12.
JPMorgan Chase is up .57 percent to hit $55.14 a share, and has gained 25.41 percent on the year. Wells Fargo lost .43 percent to fall to $41.89, but is up 22.56 percent on the year.