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JPMorgan's (JPM) Q1 Earnings & Revenues Miss Estimates
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Have you been eager to see how JPMorgan (JPM - Free Report) performed in Q1 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 Miss
JPMorgan came out with earnings of 78 cents per share, which lagged the Zacks Consensus Estimate of $1.70.
Results included provision builds owing to deterioration in the macro-economic backdrop, losses related to funding spread widening on derivatives and bridge book markdowns. After excluding these, earnings per share were $2.89.
Stable net interest income supported the results, while dismal mortgage banking and higher 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 2% lower over the past seven days.
Yet, JPMorgan have an impressive earnings surprise history. Before posting the earnings lag in Q1, the company delivered positive surprises in each of trailing four quarters, as shown in the chart below:
Overall, the company has a positive earnings surprise of 9.6% in the trailing four quarters.
Revenue Lower Than Expected
JPMorgan recorded revenues of $28.3 billion, which missed the Zacks Consensus Estimate of $29 billion. Also, it compared unfavorably with the year-ago number of $29.1 billion.
Key Q1 Statistics:
Investment banking fees were up 1% year over year
Fixed Income Markets revenue surged 34% year over year
Equity Markets revenues grew 28% year over year
Mortgage banking fees down 19% from the prior-year quarter
Net interest income stable year over year
Provisions for credit losses soar 454% year over year
Total loans up 6% year over year
Basel III common equity Tier 1 ratio of 11.5%, as of Mar 31, 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 unfavorable, it all depends on what sense the just-released report makes to the analysts.
Following the earnings release, JPMorgan’s shares are up more than 1% in the pre-trading session. This is in contrast 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!
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
JPMorgan's (JPM) Q1 Earnings & Revenues Miss Estimates
Have you been eager to see how JPMorgan (JPM - Free Report) performed in Q1 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 Miss
JPMorgan came out with earnings of 78 cents per share, which lagged the Zacks Consensus Estimate of $1.70.
Results included provision builds owing to deterioration in the macro-economic backdrop, losses related to funding spread widening on derivatives and bridge book markdowns. After excluding these, earnings per share were $2.89.
Stable net interest income supported the results, while dismal mortgage banking and higher 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 2% lower over the past seven days.
Yet, JPMorgan have an impressive earnings surprise history. Before posting the earnings lag in Q1, the company delivered positive surprises in each 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 positive earnings surprise of 9.6% in the trailing four quarters.
Revenue Lower Than Expected
JPMorgan recorded revenues of $28.3 billion, which missed the Zacks Consensus Estimate of $29 billion. Also, it compared unfavorably with the year-ago number of $29.1 billion.
Key Q1 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 unfavorable, 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 more than 1% in the pre-trading session. This is in contrast 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!
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>