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New York-based JPMorgan Chase & Co. (JPM) is a leader in the financial services sector, offering highest quality service to millions of consumers, small businesses, corporate, institutional and government clients. With a market cap of $679 billion, JPMorgan’s operations span 100+ countries in the Americas, EMEA and Indo-Pacific. The financial sector behemoth is expected to release its Q4 earnings before the market opens on Wednesday Jan. 15.
Ahead of the event analysts expect JPMorgan to report an adjusted profit of $3.86 per share down 2.8% from $3.97 per share reported in the year-ago quarter. However, the company has a robust earnings surprise history and has surpassed analysts’ earnings estimates in each of the past four quarters. Its adjusted EPS for the last reported quarter grew marginally to $4.37, exceeding analysts’ estimates by 8.7%.
For fiscal 2024, analysts project JPMorgan to report an adjusted EPS of $17.31, up 3% from $16.80 reported in fiscal 2023. In fiscal 2025, its earnings are expected to dip 3.1% year-over-year to $16.77.
JPM stock prices have soared 40.7% over the past 52 weeks, significantly outperforming the Financial Select Sector SPDR Fund’s (XLF) 28.4% surge and the S&P 500 Index’s ($SPX) 23.8% gains during the same time frame.
JPMorgan’s stock prices surged over 4.4% after the release of its impressive Q3 results on Oct. 11. The company reported a robust 7% year-over-year growth in total net revenues to approximately $42.7 billion, which exceeded Wall Street’s expectations by a notable 3.9%. Its investment banking fees surged 29.6% year-over-year to $2.2 billion, while its asset management fees grew 14.7% compared to the year-ago quarter to $4.5 billion. Furthermore, in consumer & community banking JPMorgan was ranked 1 in U.S. retail deposits for the fourth consecutive year. Meanwhile, it acquired about 2.5 million accounts during the quarter and delivered an 11.2% growth in card income to $1.3 billion.
However, its profitability took a hit due to a massive 124.8% increase in provision for credit losses, reaching $3.1 billion. This led to a 1.2% year-over-year decline in net income to shareholders amounting to $12.5 billion.
Nevertheless, analysts remain optimistic about JPMorgan’s prospects. It has a consensus “Moderate Buy” rating, out of the 21 analysts covering the JPM stock, 11 recommend “Strong Buy,” two advocate “Moderate Buy,” seven recommend “Hold,” and one advises a “Strong Sell” rating. Its mean price target of $245.65 represents a modest 2.6% premium to current price levels.
