Dimon Hands (JPM Earnings)
JPMorgan Chase (JPM) will announce its Q3 results tomorrow before market opening, with a subsequent call at 8:30am ET.
The anticipated consensus from FactSet predicts a 27% year-over-year EPS increase to $3.95 and a 21% revenue growth year-over-year, reaching $39.63 billion.
The onset of bank reports signals the beginning of the earnings season.
In the previous quarter, JPM showcased a significant EPS growth, marking its third straight quarter with EPS beats exceeding $0.40. The Q2 provision for credit losses amounted to $2.9 billion, a rise from Q1's $2.28 billion. When First Republic is excluded, the provision stands at $1.7 billion, which accounts for net charge offs of $1.4 billion and a net reserve accumulation of $326 million. JPM's perspective on the economy is as crucial as its financial figures. During its Q2 call, JPM highlighted the enduring strength of the US economy. The health of consumer balance sheets is intact, and spending continues, though at a slightly reduced pace. While there's been a slight dip in the labor market, job creation remains robust.
Yet, JPM voiced certain concerns. They pointed out that consumers are gradually depleting their cash reserves, persistent high core inflation, significant fiscal deficits, and the ongoing Ukraine conflict. Updates on JPM's progress in integrating new First Republic clients will be anticipated. JPM has indicated that the system integration is progressing as planned, aiming for substantial completion by mid-2024.
TECHS:
Historically, JPM has consistently outperformed EPS expectations over the past four quarters. The stock has been on a gradual upward trajectory since the Q1 announcement. We eagerly await JPM's insights on the economy, upcoming interest rates, and consumer expenditure trends as we approach Q4's crucial holiday season.
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