More earnings estimate jockeying


There's usually a lot of analyst activity as we head into the earnings reporting period, which kicks off Friday with JPMorgan Chase and Wells Fargo up first. Estimate activity continues with other banks, however.

Guggenheim analyst Marty Mosby has upped his rating on Bank of America to buy from neutral "in the wake of a cooling off of the Great 2012 Rally in Bank of America shares." He thinks the bank will report as much as 20 cents a share in EPS, with operating earnings at 12 cents, which is at the high end of the earnings estimate range. Mosby expects a strong performance from the mortgage unit, based on refinancing volume and reduce charge-offs, according to Deal Journal.

Evercore has joined "the chorus of analysts calling for sequential improvements in bond and equities trading revenue at Goldman Sachs and Morgan Stanley in the first quarter, though results are expected to be flat or lower than year-ago figures." While the comps may indeed be difficult in the first half of 2012, they will get markedly easier in the third and fourth quarters. So if the banks can sustain their improvement for a full-year, they will have plenty to show for their efforts.

For more:
- here's a Deal Journal article on Bank of America and one on the other banks

Related articles:
Debit valuation adjustments to ruin bank earnings?
Earnings reporting period gets underway
JPMorgan's revenues spark concern

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