Led by the six major U.S. banks, corporate earnings season officially kicks off this week. Goldman Sachs, Wells Fargo, JPMorgan Chase, Citigroup, Morgan Stanley and Bank of America are all scheduled to report fourth-quarter results. UnitedHealth is also one of about 20 S&P 500 companies set to report soon. Expectations for the reporting period are high, with analysts expecting fourth-quarter profit to rise nearly 12% annually, FactSet data shows. If so, it would be the strongest annual profit expansion since the fourth quarter of 2021. All times are Eastern Time. JPMorgan will report earnings before the market opens on Wednesday. Analyst conference call scheduled for 8:30 a.m. Last quarter: Banking giant JPMorgan Chase & Co. shares surged after the company reported better-than-expected results. This quarter: Analysts polled by London Stock Exchange Group (LSEG) expect profits to rise 35% this quarter compared with the same period last year. What CNBC senior banking reporter Hugh Son is following: “JPMorgan Chase has told investors that net interest income, capital markets and asset management revenue will lead to a strong quarter; as long as CEO Jamie Dimon ) control expenses, and their odds are stacked. History shows: JPMorgan Chase’s profit forecasts have topped estimates 82% of the time, according to Bespoke Investment Group. However, the stock has beaten estimates over the past four years. Three fell on earnings day. Goldman Sachs will report before the bell, followed by a conference call at 9:30 a.m. Last quarter: Goldman beat profit expectations for the quarter on strong equity trading and investment banking revenue, LSEG data showed. The bank expects annual profit growth of nearly 50%. What CNBC senior banking reporter Hugh Son is watching: “Expectations are high for Goldman Sachs as the Wall Street firm benefits from growth in investment banking and trading revenue in the quarter. Active markets should help its asset and wealth management business: Goldman Sachs’ earnings topped analysts’ expectations for the fifth straight quarter, Bespoke data showed. The company will report before the bell at 10 a.m. Point conference call Last quarter: WFC posted third-quarter numbers that beat analysts’ expectations This quarter: London Stock Exchange Group (LSEG) said analysts surveyed by LSEG had forecast fourth-quarter results. Report will be lackluster. What to watch: Wells Fargo is coming off a strong year, up 43% in 2024 History shows: Wells Fargo has beaten analyst estimates in three straight quarters, however. Shares fell after the release. Citigroup will report earnings before the bell. A conference call is scheduled for 11 a.m. Eastern time: C earnings beat expectations, but the stock fell as the bank increased provisions for loan losses. Quarterly: LSEG forecasts show analysts expect Citigroup’s profits to rise 45% year over year What CNBC senior banking reporter Hugh Son is following: “Citigroup remains a turnaround story, so investors want to see that. Chief Executive Jane Fraser has seen evidence of hitting targets on spending and revenue growth, and is particularly keen to hear her give 2025 guidance. History shows: Citigroup’s stock price has fallen after the release of the past three rounds of financial reports, including a 5.1% drop on October 15. Last quarter: Morgan Stanley’s three main divisions generated more revenue than expected, leading to a profit beat. London Stock Exchange data shows that Morgan Stanley’s net profit this quarter is expected to nearly double year-on-year. What to watch: Evercore ISI is bullish on Morgan Stanley’s upcoming earnings report, noting on Jan. 2 that “corporate client activity is strengthening and sponsor activity is ‘solidly materializing.'” History shows: The bank’s earnings beat expectations 79% of the time, customized. The stock gained an average of 0.9% on earnings days. UnitedHealth Plans will report earnings before the market opens. Management will host a conference call at 8:45 a.m. Last quarter: UNH issued a weaker-than-expected 2025 earnings outlook. This quarter: The insurance giant expects annual profit to rise nearly 10%, according to LSEG. What to watch: Questions about future health care policy changes under a second Trump administration loom over UnitedHealth Group. But HSBC believes the sentiment surrounding the stock may be too pessimistic. “With the uncertainty surrounding the incoming Trump administration’s policy decisions likely to shake up the health insurance industry, we sought to outline five key debates critical to the investment case. Given the bearish sentiment and weak comparisons this year, UNH There is an opportunity to return to upgrade mode in the coming quarters,” analyst Sidharth Sahoo said in a buy upgrade on Friday. History shows: UnitedHealth shares have risen an average of 0.8% on earnings days, according to Bespoke. The company only missed expectations once, in April 2018. Conference call with management scheduled for 11 a.m. Last quarter: BAC beat earnings estimates on strong trading revenue. Bank of America’s profits are expected to more than double this quarter compared with the same period last year, London Stock Exchange data showed. What to watch: Shares of Bank of America performed well last year, but still lagged other major banks, rising nearly 31%. Investors will be watching the company’s latest results for signs that it can catch up with rivals. History shows: Bank of America has had 11 stock price increases following its past 13 earnings reports, according to Bespoke data.
Big banks kick off earnings season with a major health insurance company | Real Time Headlines
RELATED ARTICLES