Source: Benzinga Feeds
Despite tailwinds from the economy and the Fed, two of the three big banks scheduled to report Q4 earnings tomorrow and Thursday could see profit declines from a year ago, according to analyst estimates. Earnings from Bank of America Corp (NYSE: BAC ), Goldman Sachs Group Inc (NYSE: GS ), and Morgan Stanley (NYSE: MS ) are on the way, with BAC and GS reporting tomorrow morning and MS following up on Thursday. Consensus from analysts is for GS and BAC to post year-over-year earnings declines, with MS gaining ground on the bottom line. Analysts expect revenue to rise for MS and GS but to fall for BAC. One reason the banks might see their profits under pressure is something they can’t help. They’re comparing Q4 results to their results from Q4 2018, back when they were still banking profit from the tax legislation that took effect at the start of 2018. Now they face tough comparisons vs. that period, but earnings throughout 2018 reflected in part a one-time boost. Remember, too, that these companies are experts at managing expenses.