JPMorgan (JPM) is set to report second quarter earnings Tuesday before the market opens. The Estimize EPS consensus is set at $1.47, 2 cents higher than Wall Street’s expectations. Revenue expectations of $24.6 billion also surpass the Street’s expectations marginally. These numbers would put both JPMorgan’s year-over-year earnings and revenue growth at less than 1%. The company’s stock is up 4.83% year-to-date, down from its late June high of 11.46%.Â
For the last two quarters, JPMorgan’s earnings have surprised both Wall Street and the Estimize consensus by over 14%. Going back further than the past 2 quarters, JPMorgan has consistently delivered earnings surprises.
JPMorgan operates as one of the largest global financial services and banking institutions. It offers services in wealth management, asset management, private banking, private equity, and investment banking. Recently, the company tapped its general counsel, Stephen Cutler, to become the new vice chairman. The role was previous held by Jimmy Lee, who unexpectedly passed away last month.
On July 8th, JPMorgan was fined $136M due to its deceptive debt collection tactics. The bank was caught selling credit card debt for accounts that were inaccurate, discharged in bankruptcy, or just not collectible. Also recently, both Stephen Cutler and COO Matthew Zames sold a combined 22,875 shares on April 15th, possibly indicating that the time has come to take a profit.
Historically, the company has experienced huge price shocks following earnings releases. This comes as no surprise, as JPMorgan’s beta coefficient, or volatility, is currently at 1.714. It has climbed to its all time high from 1.14 in 2011.
After crushing both Wall Street’s and the Estimize consensus on April 14th of this year, JPMorgan experienced a 9.3% increase in price until mid June. Similarly, after missing expectations by a wide margin on January 14th of this year, the stock’s price was pummeled by 5%. This earnings release will be no different, and the stock price could drastically shift if JPMorgan reports a big earnings surprise. Make sure to pay close attention before the market opens on Tuesday as JPMorgan looks to beat expectations.
