Banking, finance, and taxes

What to Look For in JPMorgan Earnings

Chris Lange

Published: October 10, 2017 1:45 pm

Last Updated: January 12, 2020 7:20 am

JPMorgan Chase & Co. (NYSE: JPM) is set to release its third-quarter financial results early on Thursday. Like Citigroup, JPMorgan will be one of the first major banks to report earnings and kick off this earnings season.

Compared to the financial sector as a whole, JPMorgan has more or less kept pace, though it lagged slightly. Among the major banks, JPMorgan is on the low end of the list in terms of performance, but still ahead of Wells Fargo in 2017.

As for the earnings, Thomson Reuters has consensus estimates of $1.66 in earnings per share (EPS) and $25.24 billion in revenue. In the same period of last year, JPMorgan posted EPS of $1.58 and $25.51 billion in revenue.

This stock trades at a very reasonable 12.8 times estimated 2018 earnings and could respond well in a scenario where the Fed raises rates. Book value per share totaled $66.05 in the most recent earnings report.

So far this year, JPMorgan has continued to post solid results against a stable-to-improving global economic backdrop. Management believes that the U.S. consumer remains healthy, based on strong underlying performance in the bank’s Consumer & Community Banking. JPMorgan’s loans and deposits are continuing to grow, and card sales and merchant processing volumes were up double digits in the most recent quarter.

JPMorgan is one of the leading global financial services firms, and one of the largest banking institutions in the United States, with about $2.6 trillion in assets.

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What to Expect When Citigroup Reports Thursday

Prior to the release of the earnings report, a few analysts issued calls on JPMorgan:

• Credit Suisse has a Buy rating with a $110 price target.
• Citigroup has a Neutral rating with a $96 price target.
• Deutsche Bank has a Hold rating and a $96 price target.
• Robert Baird has a Hold rating with an $88 price target.
• Jefferies has a Buy rating with a $102 target price.
• BMO Capital Markets has a Hold rating with an $86 target.
• Wells Fargo has an Outperform rating and a $110 price target.

So far in 2017, JPMorgan has performed more or less in line with the U.S. broad markets and the financial sector, with the stock up about 12% year to date. Over the past 52 weeks, the stock is up about 41%.

Shares of JPMorgan were last seen at $96.85, with a consensus analyst price target of $96.96 and a 52-week trading range of $66.74 to $97.64.