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JPMorgan's (JPM) Q4 Earnings Beat Estimates, Revenues Up Y/Y

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Have you been eager to see how JPMorgan (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 adjusted earnings of $3.07 per share, which easily beat the Zacks Consensus Estimate of $2.72.

Results excluded credit reserve releases. Including these, earnings per share amounted to $3.79.

Improved non-interest income and reserve releases 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 4.6% north over the past seven days.

Also, JPMorgan have an impressive earnings surprise history. Before posting the earnings beat in Q4, 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 and EPS Surprise

JPMorgan Chase & Co. price-eps-surprise | JPMorgan Chase & Co. Quote

Nonetheless, the company has a negative earnings surprise of 4.02% in the trailing four quarters.

 

Revenue Lower Than Expected

JPMorgan recorded revenues of $29.22 billion, which marginally lagged the Zacks Consensus Estimate of $29.28 billion. However, it compared favorably with the year-ago number of $28.29 billion.

Key Q4 Statistics:

  • Investment banking fees were up 40% year over year
  • Fixed Income Markets revenue grew 15% year over year
  • Equity Markets revenues increased 32% year over year
  • Mortgage fees and related income jumped 62% from the prior-year quarter
  • Net interest income declined 6% year over year
  • Provisions for credit losses was a net benefit of $1.9 billion, mainly driven by reserve releases
  • Total loans up 2% year over year
  • Basel III common equity Tier 1 ratio of 13.1%, as of Dec 31, 2020

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #1 (Strong 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 stocks here.)

Check back later for our full write up on this JPMorgan earnings report!

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