Big Banks and UnitedHealth Kick Off Earnings Season with High Hopes

This week, the earnings season begins with six major U. S. banks and a significant health insurer ready to share their results. Goldman Sachs, Wells Fargo, JPMorgan Chase, Citigroup, Morgan Stanley, and Bank of America are all set to report their fourth-quarter earnings. UnitedHealth, a key player in the health insurance industry, will also share its results. Analysts expect a strong yearly profit expansion, with estimates of nearly 12% growth compared to last year. This could be the highest profit growth since late 2021. Let's break down what to expect from these key reports. JPMorgan Chase will start things off on Wednesday, releasing its earnings before the market opens. Their conference call with analysts is scheduled for 8:30 a. m. Last quarter, their shares jumped after better-than-expected results. This time, analysts predict a 35% jump in earnings year-over-year. Hugh Son, a senior banking reporter at CNBC, thinks JPMorgan will likely top earnings estimates if CEO Jamie Dimon controls expenses well. Goldman Sachs is next, with earnings also set for the premarket, followed by a 9:30 a. m. conference call. Last quarter, they beat expectations due to strong stock trading and investment banking revenue. This quarter, they are expected to report a nearly 50% year-over-year earnings growth. The bank has a history of topping analyst expectations for the past five quarters.

Wells Fargo will release its earnings before the bell, followed by a 10 a. m. conference call. Last quarter, they exceeded expectations. This quarter, analysts forecast a more moderate report. Wells Fargo had a strong 2024, with a 43% stock increase. Investors will watch to see if that momentum continues. Citigroup's earnings will also come before the bell, with a conference call at 11 a. m. Last quarter, they beat estimates but saw a stock drop due to increased loan loss reserves. This quarter, analysts expect a 45% jump in year-over-year earnings. Investors will be watching for evidence of progress in the bank's turnaround story. Morgan Stanley will report earnings in the premarket on Thursday, with a call at 8:30 a. m. Last quarter, their main divisions performed well, leading to an earnings beat. This quarter, their bottom line is expected to nearly double year-over-year. Evercore ISI is optimistic about their upcoming report, noting an increase in corporate client activity. UnitedHealth will share its earnings before the stock market opens, with a management call at 8:45 a. m. Last quarter, they issued a weaker-than-expected outlook for 2025. This quarter, they are expected to report a nearly 10% year-over-year earnings growth. There are questions about future health care policy changes, but HSBC thinks the stock sentiment may be too pessimistic. Lastly, Bank of America will release its earnings in the premarket, with a 11 a. m. call. Last quarter, they topped earnings estimates on strong trading revenue. This quarter, their earnings are forecast to more than double from last year. Investors will look for signs that Bank of America can catch up to its rivals.

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