Lloyds Share Earnings Preview

Summary:

Lloyds continues south for one more day making fresh two month lows after the news that the Bank of England is considering the suspension of dividends and

Lloyds continues south for one more day making fresh two month lows after the news that the Bank of England is considering the suspension of dividends and share buybacks and into 2021 in an attempt to preserve capital. Earlier today ECB extended until January 2021 its recommendation not to pay dividends.

Investors await tomorrow the release of the earnings from Lloyds with downgraded expectations for the first half of 2020.

Lloyds Earnings Preview

Analysts expect earnings of -0.04 per share for the first half while for the full year 2020 the consensus is for 0.05 earnings per share with the higher estimate at 0.1. The revenues for the second quarter expected at 3,673 million. The EBITDA for the second quarter expected at 1,569 million while the pretax profit seen at -273 million. I still believe that it is tough to predict the revenues and earnings for the full year as the economic mess will continue throughout the year amid the coronavirus crisis.

The 1Q 2020 net income dropped by 10.6% to £4.176 million amid the lower interest rates during the coronavirus crisis and increased competition. The pretax profit for Lloyds in the first quarter was £74 million.

Lloyds Technical Analysis

Lloyds share is 0.26% lower at 28.81 today trading lower for the sixth consecutive trading session. The stock is hovering close to two-month lows as the correction after the June highs accelerated after the price breached below the 50-day moving average.

Looking further lower, bears would face resistance at 28.60 – today’s low. The low from May 22 at 27.69 would be the next target. Next support for the Lloyds share stands at 27.10 the low from May 14.

On the other side, immediate resistance for Lloyds is at 29.23 the daily top. Next supply zone for Lloyds stock will be met at 30.57 the high from July 24 trading session. Bulls have to break above the 50-day moving average at 31.33 to regain control of Lloyds.