Banking giant JPMorgan Chase & Co (NYSE:JPM) could provide more commentary on the health of the financial sector when the company reports first-quarter financial results Tuesday before market close.
Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch.
• JPMorgan Chase stock is trading at elevated levels. Where are JPM shares going?
JPMorgan Q1 Earnings Estimates
Analysts expect JPMorgan to report first-quarter earnings per share of $5.49, versus $5.07 year-over-year, according to data from Benzinga Pro.
The company has beaten analyst estimates for earnings per share in 14 straight quarters.
Analysts expect JPMorgan to report first-quarter revenue of $48.77 billion, up from $46.01 billion year-over-year.
The company has beaten analyst estimates for revenue in seven straight quarters and nine of the past 10 quarters overall.
What Experts Are Saying
The financials sector is highlighted by Freedom Capital Markets Chief Market Strategist Jay Woods in a weekly newsletter with JPMorgan as one of several big banks to report earnings this week.
“The financials posted great results last quarter but never followed through with positive price action,” Woods said. “Last week, many of the large banks came back to life and hope to continue their winning ways as they report results this week.”
Woods said key items to watch in JPMorgan’s results include investment banking revenue, the outlook for net interest income, deal-making activity commentary and guidance from top executives.
The market expert said JPMorgan CEO Jamie Dimon is not “one to shy away from voicing a concern.”
“This quarter, it could be concerning AI or private credit. Look for the use of weather analogies when he describes his future concerns and big headlines as well.”
Here are some recent analyst ratings on JPMorgan and their price targets:
- Evercore ISI Group: Maintained an Outperform rating, lowered price target from $350 to $320 on April 6.
- Piper Sandler: Reiterated an Overweight rating, lowered price target from $345 to $325 on March 30.
- Jefferies: Initiated with a Hold rating, price target of $310 on March 26.
Key Items to Watch in Tuesday’s Report
JPMorgan’s earnings could have a large impact on the financials sector, given the bank’s size, as well as on the Dow Jones Industrial Average and the ETFs that track the 30-stock index.
In the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), JPMorgan is the eighth largest component at 3.98% of assets.
The stock is one of four Dow Jones stocks reporting this week, which could make the index and ETFs highly volatile in trading.
The earnings report from JPMorgan follows quarterly results from Goldman Sachs Group Inc. (NYSE:GS). The big bank posted a double beat on Monday, but saw shares fall on management commentary.
JPMorgan previously reported strong net interest income, noninterest revenue and markets revenue in the fourth quarter. Analysts and investors will be looking for continued momentum in these areas.
The company is likely to share details on the spending habits of consumers and how the Apple Card partnership with Apple Inc (NASDAQ:AAPL) is shaping up ahead of a highly anticipated transition to replace Goldman Sachs.
JPMorgan Stock Price Action
JPMorgan stock is up 0.30% to $310.98 on Monday versus a 52-week trading range of $226.34 to $337.25. JPMorgan shares are down 3.49% year-to-date, while the stock remains up over 32% in the past 52 weeks.
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