Welcome to Extreme Investor Network, where we take a unique approach to analyzing and discussing the latest trends and opportunities in the world of investing. Today, we’re diving into the upcoming first-quarter earnings season, starting with JPMorgan Chase’s highly anticipated report.
Wall Street analysts are predicting a positive start to the earnings season, with JPMorgan expected to report earnings of $4.15 per share and $41.84 billion in revenue. One key focus for analysts is the potential upward revision to net interest income guidance, with the firm already forecasting $90 billion for the full year.
Piper Sandler’s Scott Siefers highlighted JPMorgan as having the best mix of attributes among the universals, citing ultra-conservative net interest income guidance, a strong capital base, and great positioning for this IB recovery. The stock has already outperformed the broader indexes year to date, rallying nearly 15%.
Morgan Stanley’s Betsy Graseck views JPMorgan as one of the best-positioned stocks for upward net interest income revisions, with an earnings estimate sitting 17 cents above expectations. She holds an overweight rating and $221 price target on shares, implying 13% upside from Wednesday’s close.
Looking ahead, investors should keep an eye out for JPMorgan’s investor day in May, where further guidance adjustments could occur. Commentary on a potential second dividend hike or uptick in buybacks could also impact the stock positively.
Analysts also see the prospect of fewer rate cuts as a potential tailwind for JPMorgan this season and beyond. Sticky inflation and hotter-than-expected economic data have shifted Federal Reserve rate cut expectations, with traders now pricing only a slim likelihood of a cut at the central bank’s June meeting.
In addition to JPMorgan, analysts are watching for earnings from First Republic, which the company took over in May 2023. The collapse marked the largest bank failure since the 2008 financial crisis. Integration of First Republic is expected to conclude later this year, with potential incremental earnings of $2 billion, which would add 40 cents to EPS estimates.
At Extreme Investor Network, we pride ourselves on providing valuable insights and analysis to help investors make informed decisions in a rapidly changing market. Stay tuned for more updates and in-depth analysis on the latest trends in investing.
