Have you been eager to see how JPMorgan Chase & Co. 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 $1.76 per share, which beat the Zacks Consensus Estimate of $1.67. Earnings in the reported quarter include $107 million of legal benefit.
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 fell 1.2% over the last 30 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:
J P Morgan Chase & Co Price and EPS Surprise
J P Morgan Chase & Co Price and EPS Surprise | J P Morgan Chase & Co Quote
Overall, the company has a positive earnings surprise of 14.6% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $26.2 billion, which surpassed the Zacks Consensus Estimate of $25.7 billion. Also, it compared favorably with the year-ago number of $25.5 billion.
Key Q3 Statistics:
- Investment banking fees down 1% year over year
- Fixed Income Markets revenue plunged 27% year over year; Equity Markets revenue declined 4% year over year
- Provisions for credit losses rose 14% year over year
- Average Core loans up 7% year over year
- Returned nearly $6.5 billion to shareholders through dividends and share buybacks
- Basel III common equity Tier 1 ratio of 12.5%, as of Sep 30, 2017
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.)
Check back later for our full write up on this JPMorgan earnings report!
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