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 $1.82 per share, which beat the Zacks Consensus Estimate of $1.57. Earnings in the reported quarter include $406 million of legal benefit.
Improved revenues primarily drove 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 1.9% over the last 7 days.
Nonetheless, JPMorgan have a decent earnings surprise history. Before posting the earnings beat in Q2, the company delivered positive surprises in all prior four quarters, as shown in the chart below:
Overall, the company has a positive earnings surprise of 12.7% in the trailing four quarters.
Revenue Higher Than Expected
JPMorgan recorded revenues of $26.4 billion, which surpassed the Zacks Consensus Estimate of $24.8 billion. Also, it compared favorably with the year-ago number of $25.2 billion.
Key Q2 Statistics:
- Provisions for credit losses declined 13% year over year
- Returned nearly $4.5 billion to shareholders through dividends and share buybacks
- Average Core loans up 8% year over year
- Investment banking fees grew 14% year over year
- Basel III common equity Tier 1 ratio of 12.5%, as of Jun 30, 2017
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 shares were up 1% in the pre-trading session. This is in line with 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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