Will JPMorgan Set the Tone for Bank Earnings?

Banking, finance, and taxes

Published: January 14, 2019 12:35 pm

Last Updated: January 31, 2020 2:03 am

JPMorgan Chase & Co. (NYSE: JPM) is scheduled to release its fourth-quarter financial results before the markets open on Tuesday. This is one of the major banks reporting this week. So far we’ve already seen Citigroup post a win.

Thomson Reuters has consensus estimates calling for $2.25 in earnings per share (EPS) and $27.28 billion in revenue from JPMorgan. The same period of last year reportedly had $1.76 in EPS and $25.45 billion in revenue.

This mega bank blew out expectations in 2017, with shares returning almost 24%, when analysts were originally expecting a −1.1% return. But CEO Jamie Dimon and his team’s share price dropped by 8.7% in 2018, to close at $97.62 apiece.

The current consensus price target of $120.07 was far higher than the consensus target of $104.23 from a year earlier. And the 3.3% juiced-up dividend yield would imply a total return of 26.3%, if the pool of analysts is proven to be correct.

JPMorgan is currently the largest bank by market cap, with its $335 billion valuation. It also has a 3.3% dividend yield, and Dimon would prefer to keep raising that yield as long as the regulators will allow. With a total of roughly $240 billion in total debt maturities on the books, JPMorgan has some $73 billion maturing by 2021, and that is listed as follows: $132 billion in 2019, $23.9 billion in 2020 and roughly $46 billion in 2021.

Last quarter, even Warren Buffett and Berkshire Hathaway became a big buyer of JPMorgan shares.

Here’s what a few analysts said ahead of the report:

Morgan Stanley has an Overweight rating and a $124 price target.
Barclays has an Overweight rating with a $140 price target.
Jefferies has a Hold rating.
Wells Fargo has a Buy rating.

Shares of JPMorgan were last seen up about 1% at $100.75, in a 52-week range of $91.11 to $119.33. The stock has a consensus analyst price target of $120.07.

24/7 Wall St.
The 10 Best American Stocks to Buy as China’s Economy Tanks

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.