JPMorgan Chase & Co. (NYSE:JPM): Analysts Expects The Earnings To Fall By 11% In First Quarter

by Fiona Gabriel | Friday, Apr 11, 2014 | 4969 views

Boston, MA, 04/11/2014  (usastockreport) – JPMorgan Chase & Co. (NYSE:JPM), the largest bank of the nation, is set to report its first quarter earnings of the year before the opening market bell on Friday, April 11. The market is expecting JPMorgan Chase earnings to fall by 11.2%. It will have an impact on the earnings per share. Also, the revenue is expected to decrease in the first quarter results.

Earnings and Revenue Estimate

The company reported net income of $6.13 billion in the first quarter of the last year. This year it is expected around $5.45 billion i.e. a fall of approximately 11% from the previous year. Earning per share is expected to come around $1.41 as compared to $1.59 in the same quarter last year. The revenue figure of the first quarter of 2013 was $25.85 billion. The analysts are expecting the revenue to dip by 5.1% to $24.53 billion.

Fall in trading activity

JPMorgan Chase & Co. (NYSE:JPM)’s annual investor day was held in February. The trading activities have stayed at a lower side due to the event. The client trading activity has taken a fall by 15% as compared to the same quarter in the year 2013. The analysts have taken the lower trading activity into consideration. Also, management signaled about slow uptick in the mortgage origination volumes at the start of the year. Investors are also looking the developments on Taper decisions and have eyes on the growth of China’s economy.

Dividend

The company has already announced the quarterly dividend scheduled for April 30. The ex-dividend date is April 2, and the record date is April 4. The dividend declared is $0.38 per share.

Ratings

The analysts are optimistic on the stock. Macquarie has an outperform rating on JPMorgan Chase & Co. (NYSE:JPM) with a price target of $68. Analysts at Oppenheimer also have an outperform rating on the stock with a price target of $72. The stock has an average rating of buy with a price target of $62.40.

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