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JPMorgan (JPM) Beats on Q1 Earnings & Revenue 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 Beat

JPMorgan came out with earnings of $2.37 per share, which beat the Zacks Consensus Estimate of $2.28. Earnings included 11 cents per share of mark-to-market gains related to the adoption of new recognition and measurement accounting guidance for certain equity investments previously held at cost.

Improved revenues primarily drove earnings beat.

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 nearly 1% upward over the last 30 days.

Also, JPMorgan have an impressive earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in all prior 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. Quote

Overall, the company has a positive earnings surprise of 8.7% in the trailing four quarters.

Revenue Higher Than Expected

JPMorgan recorded revenues of $28.5 billion, which surpassed the Zacks Consensus Estimate of $27.8 billion. Also, it compared favorably with the year-ago number of $25.9 billion.

Key Q1 Statistics:

  • Investment banking fees declined 8% year over year
  • Fixed Income Markets revenue grew 8% year over year
  • Equity Markets revenues jumped 26% year over year
  • Provisions for credit losses declined 11% year over year
  • Average Core loans up 7% year over year
  • Returned nearly $6.7 billion to shareholders through dividends and share buybacks
  • Basel III common equity Tier 1 ratio of 11.8%, as of Mar 31, 2018


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 were up nearly 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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