After a tough quarter, JP Morgan Chase will not be surpassing the estimations made by analysts
JP Morgan Chase & Co. is a well renowned American multinational banking and financial services holding firm. The company was founded in the year of 2000 and ever since then it has been one of the biggest financial institutions in the country. Furthermore, the multinational bank also happens to be the largest in the United States. Its closest competitors in the same industry are Goldman Sachs and Morgan Stanley who have been there to give tough competition to become the market leader. The company is now all set to release and announce its third quarter earnings.
It is still uncertain whether the company will beat the analysts’ expectations in this quarter for the fiscal year of 2015. As it is believed, The Street is considering to cut down the outlook for the third quarter. According to reports, JP Morgan Chase is expected to generate an Earnings per Share (EPS) of $1.38 in Q3. This will be an improvement from the previous quarter where the company posted an earnings per share of $1.37. However, this is said to be way lower than what the analysts expected. Their expectations nearly hit the mark of $1.45. Hence overall, this will be the ninth consecutive negative quarter earnings.
according to JP Morgan stock news, in the second quarter of the fiscal year 2015, the company did not surpass the analysts’ expectation and was below it by almost 5 percent. Also, the company posted negative earnings by 11 percent in the first quarter.
The analysts at Barclays released a note regarding this matter and it stated, “When banks set their 2015 budgets last year, many assumed rate hikes, some as early as mid-June. In conjunction with an expected increase in net interest income, we believe several also baked in increased investment spend. Still, as 2015 played out, interest rates ultimately have not increased.”
JP Morgan’s net income margin for quarter over quarter and year over year both showed significant decline. This has to be worst for the financial institution as the time is passing by.
The company managed to trade its stock at a 52 week low of $50.07 and at a 52 week high of $70.61. On Friday, the company was trading its stocks at $61.94 for one share and its market capitalization has gone on to a massive $229.02 billion.
As of this stage, JP Morgan stock is down by 0.36 percent and is sharing at $61.71 in the market.