Third quarter earnings season just kicked off with banks
JP Morgan for example beat expectations with revenue of $29.3 billion, as compared to estimates for $28.46 billion. EPS was $2.68, as compared to calls for $2.34.
“The consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels. This is being offset by weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade,” said CEO Jamie Dimon, as quoted by CNBC.
Citigroup Tops Earnings and Revenue Forecast
Citigroup also posted third quarter earnings of $1.97 a share, topping estimates for $1.95. Revenue of $18.6 billion was slightly above forecasts for $18.545 billion.
“Despite an unpredictable environment throughout the quarter, we continue to deliver on our strategy of improving shareholder returns through consistent, client-led growth while also executing against our capital plan,” CEO Michael Corbat said, as quoted by CNBC.
Wells Fargo Comes in Slightly Below Expectations
Wells Fargo just posted EPS of $1.12 a share, as compared to expectations for $1.15. Revenue was up to $22.01 billion, as compared to $21.19 billion estimates.
“We have more work ahead, but I’m confident that our focused efforts and the fundamental strengths of Wells Fargo will continue to enable us to achieve success,” Wells Fargo interim CEO Allen Parker said, as quoted by CNBC.
Going forward, a new CEO, Charles Scharf will take the helm by next week.
Investors are hopeful the bank can turn things around after being mired in restructuring and regulatory issues for the last three years. You may remember that under former CEO John Stumpf, bank employees created millions of fake accounts to meet sales goals.
Goldman Sachs Falls After Numbers Come in Below Estimates
Goldman Sachs was lower this morning after earnings came in below expectations. The bank posted a profit of $188 billion, or $4.79 a share, which was below the $4.81 expected. However, revenue did come in at $8.32, which was slightly above the $8.31 billion expected.
“Our results through the third quarter reflect the underlying strength of our global client franchise and its ability to produce solid results in the context of a mixed operating environment,” CEO David Solomon said, as quoted by CNBC. “We continue to execute on our strategic priorities, including investing in important growth opportunities in our existing and new businesses.”
