Source: Zhitong Finance
J.P. Morgan Chase will announce its first quarter earnings report in advance of the US stock market on April 12.
The first quarter earnings season for US stocks will begin on Friday. At that time, heavyweight financial institutions such as J.P. Morgan Chase, Wells Fargo, Citigroup, and BlackRock will announce their quarterly results one after another. Among them, J.P. Morgan Chase will announce the first quarter earnings report before the US stock market on April 12. The market generally predicts that J.P. Morgan Chase's earnings per share in the first quarter will reach $4.13, up about 1% from $4.10 in the same period last year. Meanwhile, due to strong growth in the retail banking business, its revenue is expected to increase 8.9% year over year to reach US$41.7 billion. If the forecast comes true, sales for the quarter will reach a record high in J.P. Morgan Chase's history.
In addition, analysts also expect that revenue from J.P. Morgan's fixed income business, stock trading business, and investment banking business will exceed market expectations due to increased trading activity. As a result, the market expects J.P. Morgan Chase CEO Jamie Dimon (Jamie Dimon) to give a positive forecast for the next few months. Especially in the context of global deal matching, merger and acquisition activities, and the recovery of IPO underwriting activities, J.P. Morgan Chase has an advantage.
According to information, J.P. Morgan Chase's revenue in 2023 reached 149.81 billion US dollars, an increase of about 22% over the previous year, and the performance was remarkable. Looking ahead to 2024, analysts expect its revenue to reach US$15.84 billion, in line with the company's historical growth rate, which is particularly impressive given the recent rise in interest rates.
In terms of earnings per share (EPS), the market expects the company's EPS to be $14.79 in 2024, which indicates that the company's annual EPS growth rate will decline by 8.9%. The reasons behind this phenomenon are complex and varied, including profit pressure from a slowdown in revenue growth and high expenses expected to increase in 2024. Therefore, how J.P. Morgan Chase responds to this challenge and its future strategic deployment will be the focus of market attention.
Meanwhile, J.P. Morgan has strong profit and revenue growth prospects. Combined with its attractive valuations and excellent balance sheet, it is in a very healthy financial position. It is worth mentioning that J.P. Morgan has been paying dividends for 54 consecutive years.
Furthermore, J.P. Morgan Chase has been managing deposits and funding sources in an efficient manner. Over the past ten years, its loan-to-deposit ratio has remained below 100%, highlighting the bank's ability to obtain deposits.
In terms of stock price performance, in the past six months, J.P. Morgan Chase's stock price has risen by nearly 40%, making it one of the best-performing stocks in the financial sector. The stock has risen 16% so far this year, surpassing the 9% increase in the S&P 500 index. J.P. Morgan's positive share price performance was due to the steady performance of its key business divisions, strong demand for banking services, and a favorable regulatory environment. Over the past decade, J.P. Morgan Chase's earnings per share have increased by more than 130%.
Last Friday (April 5), J.P. Morgan's stock price closed at $197.45, slightly lower than the historic high of $200.30 set on March 28. Currently, the bank has a market capitalization of 568.7 billion US dollars, making it one of the most valuable banks in the world.
Under Jamie Dimon's leadership, J.P. Morgan is favored by analysts and investors. The market anticipates that J.P. Morgan's stock price may fluctuate by about 3% after the earnings report is released. The stock fell slightly by 0.7% after the release of the last earnings report in January.
summed
Overall, J.P. Morgan Chase, as one of the leading financial institutions, has shown huge growth potential and strong performance prospects in its upcoming first-quarter earnings report. Despite differences in market views on its stock prices and financial forecasts, J.P. Morgan Chase's sound management, innovative business model, and strong market position continue to be favored by investors and analysts.
Although 8 of the 11 analysts surveyed by InvestingPro lowered their profit and revenue forecasts for J.P. Morgan Chase, they are still far above their initial estimates.
As far as valuation is concerned, J.P. Morgan's current valuation of $197 per share seems quite reasonable, and is no longer a cheap option for investors seeking investment opportunities in the banking sector. However, considering its 2.35% dividend yield and an average dividend growth of nearly 8% over the past five years, holding J.P. Morgan shares is still a smart move.
As earnings season begins, investors will pay close attention to how J.P. Morgan Chase responds to challenges, seizes opportunities, and performs in global financial markets. The future of J.P. Morgan Chase is undoubtedly the focus of continued attention in the financial sector.
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