JPMorgan Chase Set to Release Q4 Earnings Amid Strong Performance
New York-based JPMorgan Chase & Co. (JPM) stands tall in the financial services landscape, delivering top-tier services to millions of clients, including consumers, small businesses, and government entities. With a market capitalization of $679 billion, the company operates in over 100 countries across the Americas, EMEA, and Indo-Pacific regions. Investors are keenly awaiting the release of its Q4 earnings on January 15, before the market opens.
Analysts Anticipate Modest Earnings Decline
Analysts predict JPMorgan will report an adjusted profit of $3.86 per share, marking a 2.8% decrease from $3.97 per share from the same period last year. However, the bank has a solid track record for exceeding earnings expectations, achieving this feat in each of the last four quarters. The adjusted EPS for the last reported quarter rose slightly to $4.37, surpassing forecasts by 8.7%.
Future Earnings Projections Show Mixed Trends
Looking ahead to fiscal 2024, analysts estimate an adjusted EPS of $17.31, a 3% increase from $16.80 in fiscal 2023. However, for fiscal 2025, earnings are anticipated to decline by 3.1% to around $16.77.
JPM Stock Outperforms Major Indices
The stock price of JPMorgan has increased by 40.7% over the last year, outperforming the Financial Select Sector SPDR Fund (XLF), which rose by 28.4%, and the S&P 500 Index ($SPX), which gained 23.8% during the same period.
Strong Q3 Performance Highlights Growth Areas
After reporting impressive Q3 results on October 11, JPMorgan’s stock surged by over 4.4%. The company posted a 7% year-over-year rise in total net revenues, reaching approximately $42.7 billion, beating Wall Street’s expectations by 3.9%. Investment banking fees saw a remarkable jump of 29.6%, totaling $2.2 billion, while asset management fees increased by 14.7% to $4.5 billion. Notably, JPMorgan ranked first in U.S. retail deposits for the fourth straight year, adding about 2.5 million accounts and achieving an 11.2% increase in card income to $1.3 billion.
However, the bank faced challenges with profitability due to a substantial rise in credit loss provisions, which surged 124.8% to $3.1 billion. This increase resulted in a 1.2% decline in net income for shareholders, amounting to $12.5 billion.
Analysts Maintain Optimism for JPMorgan
Despite these headwinds, analysts remain optimistic regarding JPMorgan’s future. The stock has a consensus “Moderate Buy” rating based on feedback from 21 analysts: 11 recommend “Strong Buy,” two suggest “Moderate Buy,” seven advise “Hold,” and one rates it as a “Strong Sell.” The mean price target of $245.65 reflects a modest 2.6% premium compared to current price levels.
On the date of publication, Aditya Sarawgi did not hold any positions in the securities mentioned in this article. All details in this report are for informational purposes only. Please refer to the Barchart Disclosure Policy for further information. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
