JPMorgan Chase & Co. (NYSE:JPM) Releases Earnings Results, Misses Estimates By $0.18 EPS

Key Points

• JPMorgan missed quarterly estimates: Earnings per share came in at $5.75, $0.18 below consensus, while revenue of $50.17 billion fell short of expectations of $51.23 billion.
• Despite the miss, third-quarter net income rose 6% year over year to $15.3 billion, supported by growth across consumer banking, commercial and investment banking, and asset and wealth management.
• The bank increased its quarterly dividend to $1.65 per share, or $6.60 annualized, while analysts maintained a “Moderate Buy” consensus rating with an average price target of $362.88.

JPMorgan Chase & Co. (NYSE:JPM) announced its quarterly earnings data on Tuesday. The financial services provider reported $5.75 earnings per share for the quarter, missing the consensus estimate of $5.93 by ($0.18), FiscalAI reports. JPMorgan Chase & Co. had a return on equity of 18.23% and a net margin of 21.86%. The company had revenue of $50.17 billion for the quarter, compared to analysts' expectations of $51.23 billion.

JPMorgan Chase & Co. Stock Up 0.5%

Shares of NYSE:JPM opened at $334.66 on Tuesday. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.85 and a current ratio of 0.85. JPMorgan Chase & Co. has a 1 year low of $279.10 and a 1 year high of $366.50. The stock has a market capitalization of $889.59 billion, a P/E ratio of 14.34, a PEG ratio of 1.37 and a beta of 1.02. The stock has a 50-day simple moving average of $350.00 and a 200-day simple moving average of $329.24.

JPMorgan Chase & Co. Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Saturday, October 31st. Stockholders of record on Tuesday, October 6th will be paid a $1.65 dividend. The ex-dividend date of this dividend is Tuesday, October 6th. This represents a $6.60 annualized dividend and a dividend yield of 2.0%. This is an increase from JPMorgan Chase & Co.'s previous quarterly dividend of $1.50. JPMorgan Chase & Co.'s dividend payout ratio is presently 28.28%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on JPM shares. TD Cowen assumed coverage on shares of JPMorgan Chase & Co. in a report on Thursday, October 8th. They issued a "hold" rating and a $370.00 target price for the company. Royal Bank Of Canada increased their price target on shares of JPMorgan Chase & Co. from $330.00 to $370.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft upgraded shares of JPMorgan Chase & Co. from a "hold" rating to a "buy" rating and set a $375.00 price target on the stock in a report on Wednesday, July 22nd. HSBC boosted their price objective on shares of JPMorgan Chase & Co. from $369.00 to $377.00 and gave the company a "hold" rating in a research note on Monday, September 28th. Finally, Evercore reissued an "outperform" rating and set a $360.00 price objective on shares of JPMorgan Chase & Co. in a research note on Monday, July 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $362.88.

JPMorgan Chase & Co. News Roundup

Here are the key news stories impacting JPMorgan Chase & Co. this week:

• Positive Sentiment: JPMorgan reported third-quarter net income of $15.3 billion, up 6% from a year earlier, while revenue increased 8% to $50.17 billion. Consumer & Community Banking, Commercial & Investment Banking, and Asset & Wealth Management posted respective net-income growth of 13%, 20%, and 11%. JPMorgan Chase Reports Third-Quarter Net Income
• Positive Sentiment: Reuters highlighted stronger investment-banking activity and trading performance as key drivers of the profit increase, supporting the outlook for JPMorgan’s markets and dealmaking businesses. JPMorgan Profit Rises on Investment Banking and Trading Strength
• Positive Sentiment: The bank declared a $1.65-per-share common dividend and repurchased $664 million of stock, providing ongoing shareholder returns.
• Neutral Sentiment: JPMorgan’s results were closely watched as the first major bank earnings release of the season and as an indicator of corporate deal activity, consumer health, credit conditions, and the broader U.S. economy. JPMorgan Earnings Live Coverage
• Negative Sentiment: Adjusted earnings per share of $5.75 missed the roughly $5.93–$5.94 consensus, while revenue of $50.17 billion was below estimates near $51.2 billion. The earnings and revenue misses are the primary reasons the stock moved lower. JPMorgan Earnings Miss Estimates
• Negative Sentiment: Results included a $2.7 billion provision for credit losses and $658 million of net investment-securities losses in the Corporate segment, weighing on profitability and raising investor scrutiny of credit and market risks.

Insider Transactions at JPMorgan Chase & Co.

In related news, insider Robin Leopold sold 2,500 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $352.81, for a total transaction of $882,025.00. Following the completion of the sale, the insider owned 71,047 shares of the company's stock, valued at approximately $25,066,092.07. This represents a 3.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.41% of the company's stock.

JPMorgan Chase & Co. Company Profile

JPMorgan Chase & Co is a global financial services company headquartered in New York City. Through its businesses, the company provides banking, investment banking, asset management, private banking, commercial banking, consumer lending and payment services to individuals, businesses, institutions and governments.

The company operates through major business areas that include Consumer & Community Banking, Commercial & Investment Banking, and Asset & Wealth Management. Its products and services include deposit accounts, credit cards, mortgages, auto loans, business financing, investment and advisory services, securities trading and custody, payment processing, and wealth-management solutions.

JPMorgan Chase serves customers in the United States and maintains operations and client relationships across international markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.