JPMorgan Earnings: Here’s Why Investors Are Searching for Direction

JPMorgan Chase & Co. (NYSE:JPM) reported double-digit quarterly profit growth and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue estimate miss is not reacting well with shareholders this morning as shares are down 0.99%.

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JPMorgan Chase & Co. Earnings Cheat Sheet

Results: Net income increased 52.63% to $5.69 billion ($1.39 per diluted share) in the quarter versus a net gain of $3.73 billion in the year-earlier quarter.

Revenue: Rose 10% to $23.65 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: JPMorgan Chase & Co. reported adjusted net income of $1.39 per share. By that measure, the company beat the mean analyst estimate of $1.16. It missed the average revenue estimate of $24.42 billion.

Quoting Management: “We are committed to doing our part to speed the recovery of the housing market. This includes working with struggling homeowners to modify their loans, or pursue other options to allow them to prevent foreclosure…

Through these efforts, since 2009, we have offered more than 1.4 million mortgage modifications and completed 610,000 for both loans we own and those we service for others. With respect to Chase-owned mortgages, through modifications and short-sales, we have effectively forgiven more than $10 billion of principal and reduced borrowers’ interest payments by approximately $2 billion. Our efforts are not only helping people, they are also helping set the stage for a recovery in America’s housing market, which will ultimately reward our customers, shareholders and communities alike,” said Chairman and CEO Jamie Dimon.

Key Stats:

Revenue decreased 12.23% from $27.8 billion in the previous quarter. Net income decreased 0.32% from $5.71 billion 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 $1.32 to a profit $1.34. For the current year, the average estimate has moved down from a profit of $5 to a profit of $4.97 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)