JPMorgan Chase & Co (NYSE: JPM) has confirmed that it will release its fiscal Q4 2021 earnings on Friday, January 14, 2022, before markets open.
What to look for
Earnings: Stockearnings Estimated EPS for Q4 2021 is expected to be around $3 per share. In the third quarter, the company produced an earnings surprise of 24.67% with an EPS of $3.74. Historical EPS Performance indicates that the company has topped estimates ten times (83%) in the past 12 quarters and missed estimates only twice (16%).
Revenue: For the current quarter under review, the company expects revenue of $29.85 billion. In the third quarter, the company produced a revenue of $29.6 billion with managed revenue of $30.4 billion. Total markets revenue was down 5% to $6.3 billion, with fixed income markets dropping 20%.
Stock movement: JPMorgan Chase & Co shares have gained 1.1% since the company released its last quarter earnings. Notably, JPM shares have DOWN 27 times out of the past 48 quarters. So, the historical price reaction suggests a 56% probability of the share price going DOWN once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 1%, while the predicted move on the seventh day is 2%.
What analysts are saying
Societe Generale analyst Andrew Lim downgraded JPMorgan Chase shares from “buy” to “hold” and lowered the shares' price target from $195 to $175. The analyst noted that the cut to FY22 EPS prediction was driven by low net interest income sentiment, but his EPS forecast is still 7% ahead of consensus. Lim explained that the market had pushed the shares to "an expensive valuation," more so in light of the analyst's expectation of a flattening yield curve that “will crimp Nil growth and future price performance.
Wolfe Research analysts Steven Chubak downgraded JPMorgan shares from “buy” to “hold” with a price target of $185. According to Chubak, the JPM's risk/reward is "better balanced" because consensus projections do not fully reflect the danger of harsher restrictions and higher expense increases. Higher-than-expected expense rise through 2023 is an area where the Chubak sees a risk to bank consensus. Given remarks from management about the significance of spending to compete with new competitors and more recent statements about inflationary pressures that are beginning to impact the cost of labor, the analysts see a "very real probability" that the company's expense growth will surpass projections.
Barclays analyst Jason Goldberg raised the stock's price target from $193 to $202 but maintained a "buy" rating on the stock. Goldberg expects bank stocks to continue outperforming the market this year. The analyst told investors that although the omicron variant introduces some uncertainty in the near term, the sector has numerous positive trends this year. For instance, he expects loan growth to expedite, and net interest margins are likely to benefit from the high-interest rates.
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