Earnings Previews: BlackRock, Delta Air Lines, JPMorgan

CEO Jamie Dimon wasn’t especially concerned when the bank reported second-quarter results in July. During the conference call, Dimon commented: “We do not manage the company so we could tell analysts what the expense number is going to be.” JPMorgan is one of four big bank stocks we screened today that remain top dividend buys.

Of 26 analysts covering the stock, 16 have a Buy or Strong Buy rating on the shares, while another seven rate the stock at Hold. At a trading price of around $170.20, the upside potential, based on the median price target of $175, is 2.8%. At the high price target of $200, the upside potential is 17.5%.

Analysts are expecting JPMorgan to report third-quarter revenue of $29.67 billion, which would be down about 2.7% sequentially and up 1.8% year over year. Adjusted EPS are forecast at $3.00, down 20.6% sequentially and 2.9% year over year. For the full fiscal year, current estimates call for EPS of $14.17, up 67%, on revenue of $122.2 billion, up 2.2%.

JPMorgan stock trades at 12.0 times expected 2021 EPS, 14.4 times estimated 2022 earnings and 13.2 times estimated 2023 earnings. The stock’s 52-week range is $95.24 to $171.51. The high was posted last Thursday. JPMorgan pays an annual dividend of $4.00 (yield of 2.35%).

Delta Air Lines

After a bumpy start to the year, Delta Air Lines Inc. (NYSE: DAL) took off in February and added 37% to its share price. By mid-August, the share price was back at that February level, and the stock is up nearly 15% since then. What that all adds up to is a share price gain of around 32% over the past 12 months and a decline of more than 25% since January of 2020. Getting back to pre-pandemic revenue and profit levels may not happen for Delta, or the other major airline, until late in 2022.

While half of 24 analysts rate the stock at Hold, there are nine Buy ratings and three Strong Buy ratings as well. The message: be patient. At a recent price of around $43.50, the upside potential, based on a median price target of $55, is $28.7%. At the high price target of $67, the upside potential is 54%.

For the third quarter, the consensus revenue forecast is $8.43 billion, up 18.4% sequentially and up 175% year over year. The airline is expected to post EPS of $0.17, the first time since the December quarter of 2019 that has happened. The stock posted a loss per share of $1.07 in the second quarter and $3.30 in the third quarter of 2020. For the full fiscal year, analysts are expecting a loss of $3.93 per share, compared to a year-ago loss of $10.76, on sales of $28.16 billion, up almost 65%.

Delta Air Lines stock trades at 10.8 times estimated 2022 earnings and 6.6 times estimated 2023 earnings. The stock’s 52-week range is $28.74 to $52.28. The company has suspended its dividend payment.

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