JPMorgan Chase & Co. Earnings Cheat Sheet: Streak of Four Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component JPMorgan Chase & Co. (NYSE:JPM) reported its results for the third quarter. J.P. Morgan Chase is a global securities, investment banking and retail banking firm with operations worldwide.

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JPMorgan Chase Earnings Cheat Sheet for the Third Quarter

Results: Net income for JPMorgan Chase & Co. fell to $4.3 billion ($1.02 per share) vs. $4.42 billion ($1.01 per share) a year earlier. This is a decline of 2.7% from the year earlier quarter.

Revenue: Revenue was $24.4 billion last quarter.

Actual vs. Wall St. Expectations: JPM beat the mean analyst estimate of 93 cents per share. It beat the average revenue estimate of $23.73 billion.

Quoting Management: Jamie Dimon, Chairman and Chief Executive Officer, commented: “The Firm reported third-quarter net income of $4.3 billion, representing a 13% return on tangible common equity1. It is notable that these results included several significant items(*), including a $542 million pretax loss in Private Equity, $1.0 billion pretax of additional litigation expense in Corporate and a $1.9billion pretax DVA gain. The DVA gain reflects an adjustment for the widening of the Firm’s credit spreads which could reverse in future periods and does not relate to the underlying operations of the company. All things considered, we believe the Firm’s returns were reasonable given the current environment.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 13.3% from the year earlier, while the figure increased 67% in the first quarter, 47.4% in the fourth quarter of the last fiscal year and 23.1% in the third quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the second quarter, by 12 cents in the first quarter, and by 12 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $1.24 per share to $1.10. Over the past sixty days, the average estimate for the fiscal year has reached $4.61 abs per share, a decline from $5.02.

Competitors to Watch: Bank of America Corp. (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), Citigroup Inc. (NYSE:C), Goldman Sachs Group, Inc. (NYSE:GS), Deutsche Bank AG (NYSE:DB), Morgan Stanley (NYSE:MS), U.S. Bancorp (NYSE:USB), SunTrust Banks, Inc. (NYSE:STI), UBS AG (NYSE:UBS), and KeyCorp (NYSE:KEY).

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(Source: Xignite Financials)

 

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