Market Minute: Earnings Previews: BAC, C, JNJ
Earnings season kicked off last week with the first few big banks, like JPMorgan Chase (JPM). Let’s take a quick look at some of the heavyweights reporting tomorrow morning.
Bank of America (BAC) has had a rough YTD, gapping down sharply at the beginning of April and losing 18% this year. However, over the last 52 weeks, it’s only down 1%. Zacks anticipates EPS of $0.81 (-2.4% year-over-year) and revenue of $26.86 billion (+4% year-over-year) for its 1Q25. The options market is currently implying a move of around $2.
Competitors so far have reported solid earnings, but investors are looking ahead to a cloudy future. Jamie Dimon warned last week that the trade war is causing “considerable turbulence” in the economy. As Bank of America primarily makes its revenue in consumer banking, investors will be watching for signs of higher delinquencies or credit issues as fears of a recession grow.
Citibank (C) is much the same as BAC: down 12% year-to-date and up 1.5% over the last year, with a similar sharp drop on tariffs. For its 1Q25, Zacks estimates EPS of $1.84 (+16.5% year-over-year) and revenue of $21.18 billion (+0.4%). Like BAC, traditional consumer banking is its primary revenue source. The options market is implying a $3.70 move, but if last week taught traders anything, it’s that swings can be larger than anyone expects.
Lastly, consumer staples and healthcare behemoth Johnson & Johnson (JNJ) is up 5% year-to-date and 2% over the last year, clinging to gains despite a massive tumble with the rest of the market. The options market implies a $6.50 move post-earnings. Zacks expects it to post EPS of $2.57 (-5%) and revenue of $21.62 billion (+1%). The stock saw a rebound after President Trump paused tariffs on most countries, easing the threat to the pharma supply chain. J&J also announced it was bumping up U.S. investments by 25% over the next 4 years, to $55 billion, with four new plants expected.
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