Banking, finance, and taxes

What to Watch in JPMorgan Earnings Friday

Chris Lange

Published: October 11, 2018 10:10 am

Last Updated: January 11, 2020 4:34 pm

JPMorgan Chase & Co. (NYSE: JPM) is scheduled to release its third-quarter results before the markets open on Friday. Thomson Reuters consensus estimates are calling for $2.25 in earnings per share (EPS) and $27.5 billion in revenue. The same period of last year reportedly had $1.76 in EPS and $26.2 billion in revenue.

In the previous quarter, the company issued guidance calling for $2.26 in EPS on revenues of $27.47 billion for the third quarter.

Management sees good global economic growth, particularly in the United States, where consumer and business sentiment is high. Because of this broad growth and the strong underlying performance across each of its businesses, the bank delivered record results in the second quarter.

Currently, JPMorgan stock trades at a very reasonable 11.1 times estimated 2019 earnings and also could respond well in a rising rate scenario. This bank 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.

Overall, JPMorgan has outperformed the broad markets, with its stock up about 15% in the past 52 weeks. In just 2018 alone, the stock is up only 4%.

A few analysts weighed in on JPMorgan ahead of the report:

• Citigroup has a Neutral rating and a $125 price target.
• Wolfe Research has an Outperform rating.
• Merrill Lynch has a Buy rating with a $132 price objective.
• Goldman Sachs has a Neutral rating and a $128 price target.
• UBS Group has a Buy rating.

Shares of JPMorgan were last seen at $111.33, with a consensus analyst price target of $121.94 and a 52-week range of $94.96 to $119.33.

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