American banking and lending companies such as JPMorgan Chase & Co and Wells Fargo & Co will be releasing their second quarter earnings report before Friday’s trading session which will kick of the start of bank earnings season for the second quarter. Investors from both banks are expecting positive second-quarter earnings.
JPMorgan Chase is expected to deliver an earnings of $1.60 per share for the quarter that ended last July 30. This is higher compared to the company’s earnings of $1.55 per share for the same quarter last year but lower than the company’s previous earnings per share of $1.65 for the first quarter this year.
The slightly lower outlook for the second quarter was due to the foreseen decline in JPMorgan’s trading revenues and other revenues during the first quarter along with the rise of institutional investor client activity. JPMorgan Chase currently has a full year outlook of $6.63 earnings per share for the year which is a 7% rise from the previous year. The bank’s full-year revenue outlook is also at around $101.55 billion at a growth rate of 2.4% year over year.
The shares of the bank are up by 0.6% during Thursday’s trading session and currently has an intraday high of 94.51 last July 6. The bank is also expected to give investors an update with its current services and plans to expand beyond loan offers with services such as deals and bonds.
Wells Fargo & Co will also be releasing its second quarter earnings alongside JPMorgan before the opening bell on Friday’s trading session.
Investors of the banking company which was caught in numerous issues the past year collectively are not expecting upbeat earnings despite the recent interest rate hikes and other signs of an economic recovery in the country.
Consensus analysts estimates for the company’s earnings stands at around $1.01 per share on a revenue of $22.5 billion. Others have also predicted that Wells Fargo’s revenue might come at $22.35 billion. During the same quarter last year, the company delivered a revenue of $22.16 billion.
Wells Fargo has recently reached a preliminary agreement to settle its phony accounts scandal last year by $142 million. Wells Fargo was revealed to have created more than 2 million accounts using existing customer information without the authorization of the customer. Investigations revealed that this was due to the bank’s unrealistic sales quotas that imposed pressure on employees. Wells Fargo was also charged by over $185 million worth of fines from various regulators due to the scandal after it admitted that around two million accounts were created. The scandal has sent the company’s stocks plummeting the past year although it has been slowly recovering as the company continuously expands its effort to address the ongoing issue.