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JPMorgan (JPM) Beats on Q1 Earnings, Revenues Rise - Tale of the Tape

Have you been eager to see how JPMorgan Chase & Co. ( JPM ) performed in Q1 in comparison with the market expectations? Let's quickly scan through the key facts from this New York-based money center bank's earnings release this morning:

An Earnings Beat

JPMorgan came out with earnings per share of $1.45, beating the Zacks Consensus Estimate of $1.39 per share.

Rise in revenues was partly offset by higher operating expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for JPMorgan depicted optimism prior to the earnings release. The Zacks Consensus Estimate has moved nearly 1% higher over the last 7 days.

However, JPMorgan doesn't have a decent earnings surprise history. Before posting the earnings beat in Q1, the company delivered one positive surprises in the prior four quarters. Overall, the company has a negative earnings surprise of 1.88% in the trailing four quarters.

Revenue Came In Higher Than Expected

JPMorgan posted revenues of $24.8 billion, which was marginally ahead the Zacks Consensus Estimate of $24.4 billion. Also, it compared favorably with the year-ago number of $23.9 billion.

Key Developments to Note:

§ A legal charge of $487 million or 13 cents per share recorded

§ Positive net long-term flows to assets under management for 24 th consecutive quarter

§ Nearly $3.1 billion returned to shareholders through dividends and share buybacks

§ Basel III common equity Tier 1 ratio of 10.6%

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for JPMorgan. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

How the Market Reacted So Far

Following the earnings release, JPMorgan shares were up more than 1% in the pre-trading session. This is in line to what the stock witnessed in the prior-day's session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session's price movement may indicate a different picture.

Check back later for our full write up on this JPMorgan earnings report!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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