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JPMorgan's (JPM) Q2 Earnings and Revenues Beat Estimates
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Have you been eager to see how JPMorgan (JPM - Free Report) performed in Q2 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 $1.38 per share, which beat the Zacks Consensus Estimate of $1.26.
Results included provision builds owing to deterioration in the macro-economic backdrop, bridge book markups and gains related to funding spread tightening on derivatives. Excluding these, earnings per share amounted to $3.27.
Improved non-interest income supported the results, while lower interest income and significant rise in provisions hurt.
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 10% lower over the past seven days.
Yet, JPMorgan have an impressive earnings surprise history. Before posting the earnings beat in Q2, the company delivered positive surprises in three of trailing four quarters, as shown in the chart below:
Overall, the company has a negative earnings surprise of 7.5% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $33 billion, which surpassed the Zacks Consensus Estimate of $29.5 billion. Also, it compared favorably with the year-ago number of $28.7 billion.
Key Q2 Statistics:
Investment banking fees were surge 54% year over year
Fixed Income Markets revenue jumped 99% year over year
Equity Markets revenues grew 38% year over year
Mortgage fees and related income soar 229% from the prior-year quarter
Net interest income declined 4% year over year
Provisions for credit losses included $8.9 billion of reserve build
Total loans up 2% year over year
Basel III common equity Tier 1 ratio of 12.4%, as of Jun 30, 2020
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.
Following the earnings release, JPMorgan’s shares are up 2.4% in the pre-trading session. This is in line with 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!
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
JPMorgan's (JPM) Q2 Earnings and Revenues Beat Estimates
Have you been eager to see how JPMorgan (JPM - Free Report) performed in Q2 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 $1.38 per share, which beat the Zacks Consensus Estimate of $1.26.
Results included provision builds owing to deterioration in the macro-economic backdrop, bridge book markups and gains related to funding spread tightening on derivatives. Excluding these, earnings per share amounted to $3.27.
Improved non-interest income supported the results, while lower interest income and significant rise in provisions hurt.
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 10% lower over the past seven days.
Yet, JPMorgan have an impressive earnings surprise history. Before posting the earnings beat in Q2, the company delivered positive surprises in three of trailing four quarters, as shown in the chart below:
JPMorgan Chase Co. Price and EPS Surprise
JPMorgan Chase Co. price-eps-surprise | JPMorgan Chase Co. Quote
Overall, the company has a negative earnings surprise of 7.5% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $33 billion, which surpassed the Zacks Consensus Estimate of $29.5 billion. Also, it compared favorably with the year-ago number of $28.7 billion.
Key Q2 Statistics:
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 are up 2.4% in the pre-trading session. This is in line with 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!
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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