Categories Analysis, Finance

Earnings Preview: What to expect from JPMorgan Chase (JPM) Q4 earnings?

JPMorgan Chase & Co. (NYSE: JPM) is slated to report its fourth-quarter 2019 earnings results on Tuesday, January 14, before the market opens. The bottom line will be benefited by lower costs and expenses while the net interest income and non-interest income growth could be driving the top line.

The net interest margins are expected to remain under the pressure from the lower interest rates. Investors are likely to keep an eye on credit conditions, general economic trends and their impact on debt repayments, as well as loan growth prospects.

Read: Citigroup Q4 earnings preview

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.

Read: TD Ameritrade Q4 earnings snapshot

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.

Also Read:  Goldman turns bullish on Citigroup citing stable growth; stock gains

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.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Short seller’s report takes a toll on iQIYI (IQ) stock

Shares of Chinese firm iQIYI Inc. (NASDAQ: IQ), which often called as "The Netflix of China", dropped 4.57% at the end of today's regular session as the due diligence firm

Should you be bullish or bearish on Pinterest (PINS) stock?

Pinterest (NYSE: PINS) continued its rally a day after the company reported better-than-expected preliminary results for the first quarter of 2020. The stock closed at $16.83, up over 11%. The

Levi Strauss (LEVI) Q1 profit beats estimates, withdraws annual outlook

Levi Strauss & Co. (NYSE: LEVI) reported a 4% increase in earnings for the first quarter of 2020 helped by lower income tax expenses despite a rise in operating expenses.

Top