The company’s results continued to be impacted by the global and US economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the US and other countries where the Firm does business.
Analysts expect the company’s earnings to jump by 17.70% to $2.33 per share and revenue will rise by 3.80% to $27.82 billion for the fourth quarter. The company has surprised investors by beating analysts’ expectations thrice in the past fourth quarter. The majority of the analysts recommended a “hold” rating with an average price target of $133.77.
For the third quarter, JPMorgan posted an 8% increase in earnings helped by higher revenue. Net interest income rose by 2% driven by continued balance sheet growth and mix. The results were driven by strong client activity across products. The results were offset by weakening business sentiment and capital expenditures are mostly driven by increasingly complex geopolitical risks, including tensions in global trade.
For fiscal 2019, the company expects net interest income, on a managed basis, to be less than $57.5 billion, market dependent. Adjusted expenses are anticipated to be about $65.5 billion and net charge-offs are predicted to be about $5.5 billion.
JPMorgan’s competitor Wells Fargo (NYSE: WFC) is also scheduled to report its earnings results on the same day while Goldman Sachs (NYSE: GS) will report its results on Wednesday.
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