JPMorgan Chase & Co. Earnings: Here’s Why Shares are Up Now

JPMorgan Chase & Co. (NYSE:JPM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.25%.

JPMorgan Chase & Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 32.23% to $1.60 in the quarter versus EPS of $1.21 in the year-earlier quarter.

Revenue: Rose 0.31% to $25.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: JPMorgan Chase & Co. reported adjusted EPS income of $1.60 per share. By that measure, the company beat the mean analyst estimate of $1.44. It beat the average revenue estimate of $24.84 billion.

Quoting Management: Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results: “Our earnings reflected strong performance across our businesses. We maintained our #1 ranking in Global Investment Banking fees. Consumer deposits were up 10% compared with the prior year and Credit Card sales volumes were a record $105.2 billion, up 10%. And notably, Asset Management had $25 billion of net long-term client flows, the seventeenth consecutive quarter of positive net long-term client flows. Net charge-offs remain near historical lows in our Credit Card business, have dropped to less than half of what they were a year ago for our Real Estate Portfolios and remained very low in our wholesale portfolios. In light of these trends, we reduced the allowance for loan losses in Consumer & Community Banking in the second quarter by a total of $1.5 billion. Loan growth across the industry continued to be soft, reflecting a cautious stance by consumers, many small businesses and corporations. However, we continue to see broad-based signs that the U.S. economy is improving and we are hopeful that, as jobs are added and confidence builds, the U.S. economy will strengthen over time.”

Key Stats (on next page)…

Revenue decreased 8.71% from $27.62 billion in the previous quarter. EPS increased 0.63% from $1.59 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.38 and has not changed. For the current year, the average estimate has moved up from a profit of $5.53 to a profit of $5.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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