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Bank of America, Morgan Stanley, Charles Schwab Report Tuesday: Earnings Season Heats Up

Posted July 17, 2023 at 10:00 am
Piero Cingari
Benzinga

ZINGER KEY POINTS

  • Bank of America, Morgan Stanley and Charles Schwab will release Q2 financial results on Tuesday.
  • The Street consensus projects Bank of America’s Q2 EPS at $0.84, Morgan Stanley’s at $1.20 and Charles Schwab’s at $0.72.

Bank of AmericaMorgan Stanley and Charles Schwab Corp. are expected to announce second-quarter financial results Tuesday.

This follows the recent earnings reports of JP Morgan Chase & Co.Wells Fargo CompanyBlackRock Inc.Citigroup and State Street Corp, which revealed better-than-expected earnings, although BlackRock and State Street fell short of revenue forecasts.

After ticking higher at the start of the session, effectively recovering early March 2023 levels, the Financial Select Sector SPDR Fund ended 0.7% lower on Friday.

According to the Street consensus, Bank of America is projected to report earnings per share of 84 cents in the second quarter of 2023, representing an increase of 15.1% from 73 cents in the second quarter of 2022 but a decrease of 10.6% from the 94 cents reported in the first quarter of 2023. The consensus for quarterly revenues stands at $25.05 billion, reflecting a notable surge of 10.3% compared to the $22.69 billion reported a year ago.

Morgan Stanley is predicted to post an EPS of $1.20 in the second quarter of 2023, marking a decline of 16.7% from $1.44 a year ago and a decrease of 29.4% from $1.70 in the first quarter of 2023. Revenues are also expected to fall to $13.02 billion, down from $13.39 billion in the second quarter of 2022 (2.8% decrease) and $13.97 billion in the first quarter of 2023 (6.8% decrease).

Charles Schwab is expected to report an EPS of 72 cents, according to the Street consensus, showing a decrease of 25.8% from 97 cents in the second quarter of 2022 and a decrease of 22.6% from 93 cents in the first quarter of 2023. Revenues are projected to fall to $4.63 billion, down from $5.09 billion in the second quarter of 2022 (9% decrease) and $5.1 billion in the first quarter of 2023 (9.8% decrease).

CompanyExp. EPS (Q2 2023)%chg (Q2 2023 vs Q2 2022)%chg (Q2 2023 vs Q1 2023)Exp. Revenues (Q2 2023)%chg (Q2 2023 vs Q2 2022)%chg (Q2 2023 vs Q1 2023)
Bank of America$0.84+15.1%-10.6%$25.05 billion+10.3%-3.4%
Morgan Stanley$1.20-16.7%-29.4%$13.02 billion-2.8%-6.8%
Charles Schwab$0.72-25.8%-22.6%$4.63 billion-9.0%-9.8%

Key Bank Stock Data

  • Bank of America:
    • 1M Return: -1.6%
    • 3M Return: -0.65%
    • YTD Return: -12.4%
    • P/E 12-month forward: 9.1x
    • Street’s Target Median: 20.2%
  • Morgan Stanley:
    • 1M Return: -3.2%
    • 3M Return: -0.8%
    • YTD Return: 0.2%
    • P/E 12-month forward: 14.2x
    • Street’s Target Median: 13.08%
  • Charles Schwab:
    • 1M Return: 8%
    • 3M Return: 12.2%
    • YTD Return: -30%
    • P/E 12-month forward: 19x
    • Street’s Target Median: 16.2%

Originally Posted July 17, 2023 – Bank of America, Morgan Stanley, Charles Schwab Report Tuesday: Earnings Season Heats Up

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