JP Morgan Chase & Co (NYSE: JPM) has confirmed its earnings date, which is on Wednesday, October 13, 2021, before the market open.
What to look for
The bank, which has already raised expenses outlook severally this year, expects the costs to impact its Q3 2021 earnings. However, wealth management fees, record dealmaking, and credit card fees return that were waived during the COVID-19 pandemic will boost the company's Q3 2021. Nevertheless, Q3 revenues are likely to be lower as the slight loan uptick is unlikely to offset the impact of low-interest rates.
Earnings: Stockearning’s Estimated EPS is likely to top the previous quarter's EPS of $3.78. The company produced an earnings surprise of 21.94% in Q2 2021, and in the past two quarters, the company boasts an EPS surprise of 34.74%. In Q1, the company beat estimates of $3.05 per share and reported EPS of $4.5. Historical EPS performance shows that JPMorgan has topped estimates ten times (83%) and missed twice (16%) in the past 12 quarters.
Revenue: In Q2 2021, the company reported revenue of $30.5 billion and managed revenue of $31.4 billion. CEO Jamie Dimon said that the company had solid performance across various businesses as it continues to invest in people, technology, and market expansion. The company reported earnings of $9.6 billion, not including reserve release. JPMorgan expects investment banking and trading results in Q3 2021 to be better than its earlier forecast, but markets revenue is likely to be 10% down from a year ago.
Stock movement: Since the last earnings release, the JPMorgan stock has gained 7.7%. Following the earnings release, the share price has been DOWN 26 times out of the past 47 quarters. So, the historical price reaction suggests a 55% probability of the Stock going DOWN after the Q3 earnings release. According to the Stockearning algorithm, the predicted stock move on the first day is 1%, and the predicted move after seven days is 2%.
What analysts are saying
Credit Suisse analyst Suzan Roth Katzke raised her target price in JPMorgan’s stock from $170 to $177 and maintained a “Buy” rating on the stock. She noted that the company posted EPS of $3.78 in Q2, beating her estimate of $2.85. The analyst said that the upside compared to her estimate resulted from a combination of materially low credit costs, the realization of operating leverage, and revenue upside.
Related News:
Pinnacle Financial Partners Inc. (NASDAQ: PNFP) Earnings Expectation, Q3 EPS of $1.54.
Goldman Sachs Group Inc. (NYSE: GS) Q3 2021 Earnings Expectation, Revenue of $1.25 Billion.