JPMorgan Earnings: Here’s Why Investors are Not Happy Now

JPMorgan Chase & Co. (NYSE:JPM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.22%.

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JPMorgan Chase & Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 33.61% to $1.59 in the quarter versus EPS of $1.19 in the year-earlier quarter.

Revenue: Decreased 99.99% to $1.59 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: JPMorgan Chase & Co. reported adjusted EPS income of $1.59 per share. By that measure, the company beat the mean analyst estimate of $1.4. It missed the average revenue estimate of $25.97 billion.

Quoting Management: Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results: “JPMorgan Chase had a very good start to the year. All our businesses had strong performance, and our client franchises did exceptionally well. The Corporate & Investment Bank was #1 in fees, global debt and equity, syndicated loans, and announced M&A. Those leadership positions reflect the volume of business we do with clients and it is a great result. Consumer & Community Banking deposits were up 10% compared with the prior year, client investment assets were up 15%, and mortgage loan originations were up 37%. Asset Management also had strong performance with loan balances up 27% compared with the prior year. Assets under supervision were up 8% to $2.2 trillion. This business achieved a record $31 billion of net long-term client flows for the first quarter.”

Key Stats (on next page)…

Revenue decreased 99.99% from $26.17 billion in the previous quarter. EPS increased 14.39% from $1.39 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.33 to a profit $1.38. For the current year, the average estimate has moved up from a profit of $5.31 to a profit of $5.49 over the last ninety days.

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