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JPMorgan (JPM) Beats Q4 Earnings & Revenue Estimates

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Have you been eager to see how JPMorgan Chase & Co. (JPM - Free Report) performed in Q4 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 $1.71 per share, which handily beat the Zacks Consensus Estimate of $1.42. Earnings in the reported quarter include $475 million of tax benefit pertaining to the utilization of certain deferred tax assets.

Lower operating expenses and improved revenues primarily led to 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 by a cent over the last 7 days.

Nonetheless, JPMorgan have a decent earnings surprise history. Before posting the earnings beat in Q4, 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 8.9% in the trailing four quarters.

Revenue Higher Than Expected

JPMorgan recorded revenues of $24.3 billion, which surpassed the Zacks Consensus Estimate of $23.1 billion. Also, it compared favorably with the year-ago number of $23.7 billion.

Key Q4 Statistics:

Legal expenses of $230 million
Provisions for credit losses declined 31% year over year
Returned nearly $3.8 billion to shareholders through dividends and share buybacks
Average Core loans up 12% year over year
Basel III common equity Tier 1 ratio of 12.2%, as of Dec 31, 2016

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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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