We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JPMorgan's (JPM) Q3 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
Have you been eager to see how JPMorgan (JPM - Free Report) performed in Q3 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 $2.92 per share, which easily beat the Zacks Consensus Estimate of $2.35.
Results included legal expenses of $524 million or 17 cents per share. Excluding these, earnings amounted to $3.09 per share.
Improved non-interest income and lower provisions supported the results, while lower interest income hurt.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for JPMorgan depicted optimistic stance prior to the earnings release. The Zacks Consensus Estimate moved 16.3% north over the past seven days.
Also, JPMorgan have an impressive earnings surprise history. Before posting the earnings beat in Q3, the company delivered positive surprises in three of trailing four quarters, as shown in the chart below:
Nonetheless, the company has a negative earnings surprise of 7.63% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $29.1 billion, which surpassed the Zacks Consensus Estimate of $28.6 billion. Also, it compared unfavorably with the year-ago number of $29.3 billion.
Key Q3 Statistics:
Investment banking fees were up 11% year over year
Fixed Income Markets revenue grew 29% year over year
Equity Markets revenues jumped 32% year over year
Mortgage fees and related income rose 23% from the prior-year quarter
Net interest income declined 9% year over year
Provisions for credit losses included net reserve release
Total loans up 1% year over year
Basel III common equity Tier 1 ratio of 13%, as of Sep 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 1.3% 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!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
JPMorgan's (JPM) Q3 Earnings and Revenues Beat Estimates
Have you been eager to see how JPMorgan (JPM - Free Report) performed in Q3 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 $2.92 per share, which easily beat the Zacks Consensus Estimate of $2.35.
Results included legal expenses of $524 million or 17 cents per share. Excluding these, earnings amounted to $3.09 per share.
Improved non-interest income and lower provisions supported the results, while lower interest income hurt.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for JPMorgan depicted optimistic stance prior to the earnings release. The Zacks Consensus Estimate moved 16.3% north over the past seven days.
Also, JPMorgan have an impressive earnings surprise history. Before posting the earnings beat in Q3, 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
Nonetheless, the company has a negative earnings surprise of 7.63% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $29.1 billion, which surpassed the Zacks Consensus Estimate of $28.6 billion. Also, it compared unfavorably with the year-ago number of $29.3 billion.
Key Q3 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 1.3% 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!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>