Major Banks Start Reporting Q3 Earnings
It’s the unofficial start to Q3 earnings season with the morning releases of some of the biggest banks on Wall Street. In truth, we’ve been seeing Q3 reports come in dribs and drabs previously this week and before. Traditionally, earnings season didn’t kick off until Alcoa (AA) reported, but they’re not scheduled until next Wednesday. In any case, we’re happy we’re here; we can finally get a good glimpse at how the past quarter went, and how the full year is expected to finish.
Zacks Rank #2 (Buy)-rated JPMorgan Chase (JPM) posted Q3 earnings of $4.33 per share, nicely surpassing the $3.89 in the Zacks consensus for an +11.3% positive earnings surprise — and its fifth-straight bottom-line beat. Revenues of $39.87 billion in the quarter outperformed expectations by +1.9%, helping solidify its leadership status of the biggest Wall Street banks.
Citigroup (C) also beat estimates on both top and bottom lines this morning for its Q3, with earnings of $1.63 per share coming in ahead of the $1.26 analysts were looking for on $20.4 billion in quarterly revenues, which surpassed the $19.32 billion anticipated. Both Institutional and Wealth Management outperformed expectations in the quarter, and shares are up +2.6% on the news.
Wells Fargo (WFC) made it a trifecta this morning, outpacing expectations on both earnings and revenues. The company reported $1.39 per share — nicely above the $1.25 Zacks consensus and the $1.30 per share posted in the previous year’s quarter. Revenues of $20.86 billion in the quarter beat estimates by a cool +3.18%. Shares are up +2.4% in pre-market trading at this hour, nearly bring shares back to break-even for the year.]
The September Import Price Index this morning came in well below expectations: +0.1% versus +0.5% consensus, which was also the previous month’s print. It’s the smallest move on import prices since June. Stripping out volatile petrol (fuel oil/gasoline), this figure drops to -0.3% — lower than the -0.1% anticipated and the lowest result since June of 2022. Year over year came in -1.7% for the eighth straight down-month. It’s worse than the -1.4% expected, but the closest to break-even since February.
Exports came in +0.7% month over month. Its -4.1% year over year is pretty much in-line with analyst expectations, and an improvement from the downwardly revised -5.7% the previous month. This is the sixth-straight month lower on export prices, year over year. After today’s open, we’ll see Consumer Sentiment for October, expected to tick down to 67.4 from 68.1 reported last month.
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