Breaking

Russian International Reserves Fall $15.7 Billion in Week to Dec. 19
Tweet TWEET

J.P. Morgan, Wells Fargo, Bank of America, Goldman Sachs and Morgan Stanley are part of Zacks Earnings Preview:

 J.P. Morgan, Wells Fargo, Bank of America, Goldman Sachs and Morgan Stanley
                     are part of Zacks Earnings Preview:

PR Newswire

CHICAGO, Jan. 13, 2014

CHICAGO, Jan. 13, 2014 /PRNewswire/ --Zacks.com releases the list of
companies likely to issue earnings surprises. This week's list includes J.P.
Morgan (NYSE:JPM-Free Report), Wells Fargo (NYSE:WFC-Free Report),Bank of
America (NYSE:BAC-Free Report), Goldman Sachs (NYSE:GS-Free Report) and Morgan
Stanley (NYSE:MS-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes their Bull Stock of the Day available, free of
charge. To see it, click here.

Q4 Earnings Season: Can Banks Deliver?

With the December jobs report now out of the way, the market can start
focusing on the 2013 Q4 earnings season now. The reporting cycle doesn't
really get into high gear till next week, but we have a Finance-heavy list of
51 companies reporting results this week, including 27 S&P 500 members.

The Finance sector is heavily represented in this week's reporters, with all
of the sector's big guns like J.P. Morgan (NYSE:JPM-Free Report), Wells Fargo
(NYSE:WFC-Free Report),Bank of America (NYSE:BAC-Free Report), and Goldman
Sachs (NYSE:GS-Free Report) coming out with results this week. J.P. Morgan has
been in the news for all the wrong reasons, with regulatory and litigation
issues dominating the headlines. The bank's Q4 earnings report will likely be
quite 'noisy', but its superior core earnings power should remain intact.

The banking group as a whole will continue to suffer net margin pressures as
loan growth remains tepid and the mortgage business continue losing ground. On
the capital markets front, the equity business likely did fairly good in Q4,
while the fixed income and currencies side remained under pressure. Morgan
Stanley (NYSE:MS-Free Report) has a stronger equities franchise, while Goldman
has always been a FICC powerhouse. Total earnings for the Finance sector as a
whole are expected to be up +19.4% from the same period last year, with easy
comparisons, particularly for Bank of America and the insurers, driving the
year-over-year growth. 

The Q4 earnings season has gotten underway already, with results from 24 S&P
500 members out. Total earnings for these 24 companies (not EPS, median or
otherwise) are up +18.6% from the same period last year, with a 'beat ratio'
of 54.2% and a median surprise of +1.5%. Total revenues are up +7.2%, with an
impressive revenue 'beat ratio' of 66.7% and a median surprise of +1.5%.
Comparing the results for this admittedly small of number of companies with
what we saw from the same group in Q3 and the last few quarters, the earnings
and revenue growth rates and the revenue beat ratio compare favorably, while
the earnings beat ratio is a bit on the weak side.

But at this stage, the Q4 earnings season's story isn't about the few
companies that have reported, but bulk of those whose results are awaited. To
that point, the 'composite' picture for Q4, where we combine the results from
the 24 companies that have reported already with the 476 still to come, is for
growth rate of +6.3%. This reflects +1.2% higher revenues and net margin gains
of about 50 basis points. Finance remains a big growth driver in Q4 – total
earnings growth for the S&P 500 in Q4 drops to +3.7% once the sector is
excluded. 

As has been the case at the start of recent quarterly earnings cycles, the
current +6.3% growth rate for Q4 represents a sharp drop over the last three
months.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of
the industries and the stocks poised to outperform the market. Click to
subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978. The later formation of the Zacks Rank, a proprietary stock picking
system; continues to outperform the market by nearly a 3 to 1 margin. The best
way to unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email newsletter; Profit
from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED
to be worth your time! Register for your free subscription to Profit from the
Pros.

Get the full Report on JPM - FREE
Get the full Report on WFC - FREE
Get the full Report on BAC - FREE
Get the full Report on GS - FREE
Get the full Report on MS - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities
(including a broker-dealer and an investment adviser), which may engage in
transactions involving the foregoing securities for the clients of such
affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Zacks.com provides investment resources and informs you of these resources,
which you may choose to use in making your own investment decisions. Zacks is
providing information on this resource to you subject to the Zacks "Terms and
Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment
is the potential for loss. This material is being provided for informational
purposes only and nothing herein constitutes investment, legal, accounting or
tax advice, or a recommendation to buy, sell or hold a security. No
recommendation or advice is being given as to whether any investment is
suitable for a particular investor. It should not be assumedthat any
investments in securities, companies, sectors or markets identified and
described were or will be profitable. All information is current as of the
date of herein andis subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment
Research does not engage in investment banking, market making or asset
management activities of any securities. These returns are from hypothetical
portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced
monthly with zero transaction costs. These are not the returns of actual
portfolios of stocks. The S&P 500 is an unmanaged index. Visit
http://www.zacks.com/performance for information about the performance numbers
displayed in this press release.

SOURCE Zacks Investment Research, Inc.

Website: http://www.zacks.com
 
Press spacebar to pause and continue. Press esc to stop.