The fourth quarter earnings season therefore begins on Wall Street with the banks…
(Boursier.com) — The fourth quarter earnings season is therefore starting on Wall Street with the banks. In business news, the financial publications for the fourth quarter got off to a smooth start this weekend. After Delta Air yesterday, it was the financial firms’ turn to announce. The banks JP Morgan, Citigroup and Wells Fargo announce before market opening this Friday, with also First Republic and the asset management giant BlackRock.
According to FactSet, earnings for the S&P 500 are expected to rise 21.7% year-over-year in the fourth quarter. This would mark the fourth consecutive quarter of earnings growth above 20%, although this represents a slowdown from the nearly 40% growth seen in the third quarter, 91% in the second quarter and 52% in the first quarter.
The bottom-up earnings-per-share estimate rose 0.4% to $51.25 in the quarter. However, the focus has been on slowing pricing momentum, given that over the past four quarters analysts have raised their EPS estimates by an average of 4.7%. Nine of the eleven sectors are expected to see year-over-year profit growth in the fourth quarter, with energy, materials and industrials leading the way. Consumer Discretionary should register only a token gain, while Financials and Utilities should see slight declines.
Bank of America and Goldman Sachs announce on January 18, then Morgan Stanley January 19.