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Have you been eager to see how JPMorgan JPM performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based major global bank’s earnings release this morning:
An Earnings Beat
JPMorgan came out with earnings of $2.34 per share, which beat the Zacks Consensus Estimate of $2.24.
Improved revenues primarily drove earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for JPMorgan depicted pessimistic stance prior to the earnings release. The Zacks Consensus Estimate moved marginally down over the last seven days.
Nonetheless, JPMorgan have an impressive earnings surprise history. Before posting the earnings beat in Q3, the company delivered positive surprises in all prior four quarters, as shown in the chart below:
JPMorgan Chase & Co. Price and EPS Surprise
JPMorgan Chase & Co. Price and EPS Surprise | JPMorgan Chase & Co. Quote
Overall, the company has a positive earnings surprise of 4.2% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $27.3 billion, which surpassed the Zacks Consensus Estimate of $27.2 billion. Also, it compared favorably with the year-ago number of $26.5 billion.
Key Q3 Statistics:
- Investment banking fees were flat year over year
- Fixed Income Markets revenue declined 10% year over year
- Equity Markets revenues grew 17% year over year
- Provisions for credit losses declined 35% year over year
- Average Core loans up 7% year over year
- Returned nearly $6.9 billion to shareholders through dividends and share buybacks
- Basel III common equity Tier 1 ratio of 12.0%, as of Sep 30, 2018
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for JPMorgan. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
How the Market Reacted So Far
Following the earnings release, JPMorgan’s shares were up nearly 1% in the pre-trading session. This is in contrast to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this JPMorgan earnings report!
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
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