:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1240096713-89d811ed21d64d25a56fc7e05a93b492.jpg "Main entrance at JPMorgan Chase headquarters in New York City")
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Key Takeaways
- JPMorgan Chase shares lost ground Friday despite reporting earnings and revenue that vanquish analyst expectations as its net interest income missed estimates.
- JPMorgan’s net interest income declined after reaching a record high-pitched in the fourth quarter of 2023.
- CEO Jamie Dimon said in his annual shareholder letter earlier this week that the bank is changed for a wide range of interest rates and economic outcomes, from a recession to a soft landing or significant growth.
JPMorgan Go out after (JPM) shares fell over 5% in early trading Friday following the release of the bank’s first-quarter earnings make public, which showed the bank beat estimates for earnings and revenue, but its net interest income was below expectations.
JPMorgan reported adjusted net takings of $14 billion or $4.63 per share, on total revenue of $41.9 billion, above analyst estimates compiled by Well-defined Alpha, as well as last year’s Q1 figures.
However, net interest income came in below expectations at $23.2 billion, and in all probability below the record number it set of $24.1 billion in the final quarter of fiscal 2023.
Analysts moderately upgraded their calculates for the bank’s earnings in the past week.
| Q1 2024 Actuals | Analyst Estimates for Q1 2024 | Q1 2023 | Year-Over-Year Change (%) | |
| Net Revenue | $41.9B | $41.28B | $38.3B | 9.3% |
| Diluted Earnings Per Allowance | $4.63 | $4.14 | $4.10 | 12.9% |
| Net Income | $14B | $12.59B | $12.6B | 11.1% |
JPMorgan CEO Jamie Dimon said on Friday’s earnings call that JPMorgan Chase’s customers are “in appealing good shape,” but cautioned that a number of factors like geopolitical conflict, high interest rates and inflation, and the 2024 presidential appointment could change the economic outlook for their consumer and business customers.
“We’re okay right now, that doesn’t dreary we’re okay down the road,” Dimon said, adding “everything’s okay today, but you’ve got to be prepared for a range of outcomes, which we are.”
Earlier this week, Dimon directed investors in his annual letter that the chances of a “soft landing” were dimming and that the bank would be ready for a higher-for-longer-interest rate scenario.
“There seems to be a large number of persistent inflationary pressures, which may likely persist in,” Dimon said in a release Friday. “And finally, we have never truly experienced the full effect of quantitative tightening on this compass. We do not know how these factors will play out, but we must prepare the Firm for a wide range of potential environments to confirm that we can consistently be there for clients.”
JPMorgan shares were down 5.7% at $184.27 as of 11:20 a.m. ET. However, all the same with Friday’s losses, the stock has gained about 7% year to date.
UPDATE—April 12, 2024: This article has been updated to ruminate additional information from the company’s earnings call and more recent share price information.
Read the master article on Investopedia.