The corporate earnings season is underway, with six major US banks and UnitedHealth Group set to report fourth-quarter results. Analysts expect nearly 12% year-on-year earnings growth for the fourth quarter, which would be the strongest yearly profit expansion since 2021.
Here’s what investors need to watch:
* JPMorgan Chase is expected to post a 35% earnings jump, driven by strong net interest income and asset management revenue. However, history shows that JPMorgan tops earnings estimates 82% of the time, but has fallen on three of the last four earnings days.
* Goldman Sachs is forecasted to report year-on-year earnings growth of nearly 50%, with analysts citing rising investment banking and trading revenue as key drivers.
* Wells Fargo is expected to report a muted fourth-quarter report, despite its strong year-over-year growth. History shows that Wells Fargo has beaten analyst estimates for three straight quarters but shares have fallen after two of those releases.
* Citigroup is expected to post a 45% pop in year-on-year earnings, driven by revenue growth and expense management. However, history shows that Citigroup shares have fallen after the last three earnings releases.
* Morgan Stanley’s bottom line is expected to nearly double year on year, driven by corporate client activity and sponsor growth.
* UnitedHealth Group is forecasted to report year-over-year earnings growth of nearly 10%, despite uncertainty over future healthcare policy changes under a second Trump administration.
Investors will be watching for signs that these companies can sustain their momentum in the face of changing market conditions.
Source: https://www.cnbc.com/2025/01/12/earnings-playbook-big-banks-kick-off-the-reporting-season-along-with-a-major-health-insurer.html