JPMorgan Shares fell Despite Earnings Beat

Published on: 14 Jul, 2017

JPMorgan Chase & Co. (NYSE: JPM) on Friday reported second-quarter earnings that topped analysts’ estimate, but the shares are still down as expectations for interest income are low.

The New York-based bank said revenue rose 1.2 percent to $25.50 billion in the second-quarter, beating analysts’ estimate of $24.96 billion, according to Thomson Reuters’ consensus.

Net income rose 13 percent to 7.03 billion, or $1.82 a share, from $6.2 billion, or $1.55, a year earlier. Analysts polled by Thomson Reuters has estimated earnings to be $1.58 per share.

"We continued to post very solid results against a stable-to improving global economic backdrop," JPMorgan CEO Jamie Dimon said in a release. "The U.S. consumer remains healthy, evidenced in our strong underlying performance in Consumer & Community Banking."

Although this is a big beat for JPMorgan, the reaction for the investors is not positive. JPMorgan’s shares rose 1 percent in the premarket. But it is trading down 1.3 percent in the early trading in New York.

One of the reason is that the bank lowered its expectation for net interest income for the year, seeing about half a billion to a $4 billion increase from last year. In addition, investors are also worried about the high valuation for the banks. JPMorgan shares have gained 43.15 percent in one-year period. Investors are concerned that the high expectation is already priced in.

Ratings

Ratings
  • 213Views
  • 0Comments

Recommend to Friends

  • facebook
  • Twitter
  • google plus
  • pinterest
  • Digg
  • stumbleupon
  • Reddit
  • linkedin

@Newsletter

Sign Up for Weekly Updates

Related Posts

03 Jul, 2017 210
28 Jul, 2017 810
07 Sep, 2017 586
08 Sep, 2017 173

Comments

There is no comment on this article