An overview of JPMorgan Chase’s 4Q results
An investor's guide to JPMorgan Chase's 4Q results (Part 1 of 14)
JPMorgan Chase is a bellwether for the banking sector
JPMorgan Chase & Co. (JPM) is one of the “big four” banks in the US. The other banks are Bank of America (BAC), Citibank (C), and Wells Fargo (WFC). All of the banks are a part of one of the largest ETFs that focuses on financials—the Financial Select Sector SPDR (XLF).
JPMorgan is a full-service bank. It’s strong across the spectrum of banking services—retail and community and commercial and investment banking. It was also one of the most resilient banks during the sub-prime crisis.
Fourth quarter results
For the fourth quarter, JPMorgan was the first bank, among the “big four” banks, to declare its earnings on January 14. Analysts expected JPMorgan’s earnings to be in the range of $1.16–$1.45 per share. Various Wall Street analysts’ average estimate was $1.30 per share.
JPMorgan declared earnings per share, or EPS, of $1.19. This was $0.11 lower than the average estimate. As a result, JPMorgan’s stock fell by nearly 3.5% on the day the earnings were declared. It was a bad year for JPMorgan. It missed out on earnings expectations in three out of the four quarters. In the second quarter, the bank was able to beat analysts’ estimate.
Were the results really that bad?
Were the results as bad as the market seems to be indicating? In this series, we’ll provide an in-depth look at JPMorgan’s results. We’ll also focus on JPMorgan’s five main business segments. We’ll see how the segments performed this quarter. Finally, we’ll look at the factors that investors need to know about JPMorgan for the upcoming quarters.
Browse this series on Market Realist:
