2 Huge Banks Investors are Watching Before Earnings

Wells Fargo & Company (NYSE:WFC) will unveil its latest earnings on Monday, October 17, 2011. The average estimate of analysts is for profit of 73 cents per share, a rise of 21.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 70 cents. Between one and three months ago, the average estimate moved up. It has risen from 72 cents during the last month. For the year, analysts are projecting net income of $2.80 per share, a rise of 23.9% from last year.

The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported profit of 70 cents per share versus a mean estimate of 69 cents. Two quarters ago, it reported net income of 67 cents per share. On average, analysts predict $20.25 billion in revenue this quarter, a decline of 3% from the year ago quarter. Analysts are forecasting total revenue of $81.15 billion for the year, a decline of 4.8% from last year’s revenue of $85.21 billion.

Competitors to Watch: Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), U.S. Bancorp (NYSE:USB), PNC Financial Services (NYSE:PNC), SunTrust Banks, Inc. (NYSE:STI), KeyCorp (NYSE:KEY), Goldman Sachs Group, Inc. (NYSE:GS), Regions Financial Corp. (NYSE:RF), and Morgan Stanley (NYSE:MS).

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Citigroup, Inc. (NYSE:C) will unveil its latest earnings on Monday, October 17, 2011. The average estimate of analysts is for profit of 82 cents per share, a rise of 2.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.01. Between one and three months ago, the average estimate moved down. It also has dropped from 94 cents during the last month. For the year, analysts are projecting net income of $3.87 per share, a rise of 10.6% from last year.

The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of $1.09 per share against a mean estimate of net income of 96 cents, and the quarter before, the company exceeded forecasts by 10 cents with profit of $1 versus a mean estimate of net income of 90 cents. On average, analysts predict $19.51 billion in revenue this quarter, a decline of 5.9% from the year ago quarter. Analysts are forecasting total revenue of $79.32 billion for the year, a decline of 8.4% from last year’s revenue of $86.6 billion.

Competitors to Watch: Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Morgan Stanley (NYSE:MS), Barclays PLC (NYSE:BCS), Goldman Sachs Group, Inc. (NYSE:GS), U.S. Bancorp (NYSE:USB), UBS AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), and Royal Bank of Scotland Group plc (NYSE:RBS).

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