JP Morgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon released the company’s first quarter 2016 earnings this morning. JP Morgan reported EPS of $1.35, beating the Wall Street consensus analyst estimate by $0.09 or 7.14 percent and revenues of $24.10 billion, beating estimates by $700 million or 2.99 percent.
The JPM EPS figure represents year over year growth of -6.90 percent and the revenues represent year over year growth of -2.90 percent.
“We delivered solid results this quarter with strong underlying drivers,” CEO Jamie Dimon was quoted in the JPM press release. “The consumer businesses continue to grow loans and deposits impressively, attracting deposits faster than the industry. The U.S. consumer remains healthy and consumer credit trends are favorable.”
“Our company earned a record $24.4 billion in net income on revenue of $96.6 billion in 2015. In fact, we have delivered record results in the last five out of six years, and we hope to continue to deliver in the future,” Dimon stated in the financial services company’s 2015 annual report. The JPM CEO is variously reported to have a net worth of $1 to $1.1 billion, according to Profit Confidential. In January, it was reported that Dimon’s net worth had slipped below $1 billion by Marketwatch. However, the price of JPM shares has rebounded somewhat since then, likely bringing his worth back close to $1 billion again.
Going into today’s JP Morgan earnings release, analysts had reduced first quarter 2016 EPS estimates from $1.54 to $1.26, and full-year views from $6.14 to $5.62, over the past 90 days. Full-year 2017 estimates have been brought down from $6.78 to $6.36, over the same period.
For the second quarter of 2016, the analyst consensus is for EPS of $1.43, down from $1.52, 90 days ago. If met, the second quarter EPS view represents year over year growth of -7.10 percent.
Analyst estimates are likely to be revised with today’s JPM earnings release.
The street sees full-year 2016 JP Morgan revenues at $95.40 billion and 2017 revenues at $100.69 billion. This year’s revenue estimate equates to year-over-year growth of 1.30 percent. The 2017 view, if met, would equate to growth of 5.50 percent.
Jamie Dimon has been vocal a supporter of JP Morgan shares recently, purchasing 500,000, worth more than $26.5 million at prices between $53.13 and $53.30 on February 11, as reported by Yahoo Finance. So far, the trade has earned Dimon close to $2.4 million with yesterday closing JPM price of $59.28.
“The consumer balance sheet is in the best shape it’s ever been in,” Dimon stated in the 2015 annual report, defending the U.S. consumer, seen as being key to JP Morgan’s future growth. “Household formation is going up, car sales are at record levels, and we see that consumers are spending the gas dividend.”
At the end of 2015, JP Morgan held $902.80 billion in cash and had $572.66 billion in debt. JPM debt-to-equity is reported at 117 percent by Investor’s Business Daily.
Also at the end of the 2015 financial year, JP Morgan reported a profit margin of 27.24 percent, an operating margin of 37.53 percent, and a return on equity of 10.20 percent.
Analysts see JPM EPS growing by 7.18 percent annually over the coming five years.
Twenty-eight research firms currently publish price targets and buy and sell recommendations for JPM stock. The mean recommendation is 1.9, where 1.0 is a strong buy and 5.0 is a sell. The average price target among the 28 firms is $69.29. Price targets range from $50 to $79.
Major institutional holders of JP Morgan shares include The Vanguard Group, FMR LLC, State Street Corporation, and Capital World Investors.
JP Morgan is one of the first major companies to report financial results in the 2016 first quarter earnings season. Tomorrow, Bank of America Corp. (NYSE: BAC), headed by CEO Brian Moynihan, whose net worth was described as “rapidly shrinking” by Forbes, reports earnings at 6:45 a.m. ET tomorrow, along with Wells Fargo & Co. (NYSE: WFC), headed by CEO John Stumpf, who has a reported net worth of close to $50 million, according to the Daily Mail, at 8:00 a.m. ET. On Friday, Citigroup Inc (NYSE: C) is scheduled to report its first quarter 2016 financial results before the market open.
Bloomberg has described overall expectations for first quarter 2016 corporate earnings as “low.” Fox News contributor Gary Kaltbaum has noted “when everyone already knows something and when everyone is already reporting something, it is already in the market…. potentially!” with regard to a seeming consensus for poor-quality first quarter 2016 corporate earnings.
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