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Have you been eager to see how JPMorgan Chase & Co. (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 $1.55 per share, which beat the Zacks Consensus Estimate of $1.43.
Lower operating expenses and improved revenues were largely responsible for earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for JPMorgan depicted optimism prior to the earnings release. The Zacks Consensus Estimate rose over the last 7 days.
Further, JPMorgan have a decent earnings surprise history. Before posting the earnings beat in Q2, the company delivered three positive surprises in the prior four quarters, as shown in the chart below:
Overall, the company has a positive earnings surprise of 4.22% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $25.2 billion, which was ahead the Zacks Consensus Estimate of $24.1 billion. Also, it compared favorably with the year-ago number of $24.5 billion.
Key Developments to Note:
Provisions for credit losses increased 50% year over year Returned nearly $4.4 billion to shareholders through dividends and share buybacks Average Core loans up 16% year over year Retail deposits rose 10% from the prior-year quarter Basel III common equity Tier 1 ratio of 11.9%, as of Jun 30, 2016
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.
How the Market Reacted So Far
Following the earnings release, JPMorgan shares were up more than 2% in the pre-trading session. This is in contrary 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!
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JPMorgan (JPM) Tops Q2 Earnings & Revenue Estimates
Have you been eager to see how JPMorgan Chase & Co. (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 $1.55 per share, which beat the Zacks Consensus Estimate of $1.43.
Lower operating expenses and improved revenues were largely responsible for earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for JPMorgan depicted optimism prior to the earnings release. The Zacks Consensus Estimate rose over the last 7 days.
Further, JPMorgan have a decent earnings surprise history. Before posting the earnings beat in Q2, the company delivered three positive surprises in the prior four quarters, as shown in the chart below:
JPMORGAN CHASE Price and EPS Surprise
JPMORGAN CHASE Price and EPS Surprise | JPMORGAN CHASE Quote
Overall, the company has a positive earnings surprise of 4.22% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $25.2 billion, which was ahead the Zacks Consensus Estimate of $24.1 billion. Also, it compared favorably with the year-ago number of $24.5 billion.
Key Developments to Note:
Provisions for credit losses increased 50% year over year
Returned nearly $4.4 billion to shareholders through dividends and share buybacks
Average Core loans up 16% year over year
Retail deposits rose 10% from the prior-year quarter
Basel III common equity Tier 1 ratio of 11.9%, as of Jun 30, 2016
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.
How the Market Reacted So Far
Following the earnings release, JPMorgan shares were up more than 2% in the pre-trading session. This is in contrary 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!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>