Jump to content

Earnings Season: JP Morgan and Blackrock Blow Past Estimates


MongiIG

Recommended Posts

KEY TALKING POINTS:

  • JP Morgan reports earnings per share of $3.74, up 28% year on year.
  • Blackrock assets under management jump 16% yoy, earnings of $10.89

JPMorgan don samar da asusun Bitcoin na farko mai sauki ga abokan ciniki

 

US banks and asset managers have kicked off the Q3 earnings season and it’s been another impressive quarter for both JP Morgan and Blackrock, which have exceeded market expectations once again. There will be an increased focus on this round of earnings as investors will want to know how rising prices have affected corporate margins and what to expect in terms of growth for the fourth quarter given rising concerns about stagflation.

JP Morgan: net revenues for the third quarter were $29.6 billion, 5% lower than the previous quarter but net income rose to $11.7 billion, or $3.74 per share, compared with $9.4 billion, or $2.92 per share, a year earlier, and beating estimates of $3 per share. Quarterly net interest income was $13.2 billion, up 1%, whilst non-interest revenue was up 3%, driven mostly by higher investment banking fees. Equity income benefitted from upbeat sentiment in stocks throughout the quarter, but trading revenues have taken a hit after volatility has died down from the peaks of the pandemic. Stimulus checks boosted consumer credit spending and interest income despite ongoing concerns about the effects of the pandemic.

Once again, the bank benefited from releasing provision for credit losses as borrowers continued to hold up better than previously expected, with a quarterly net reserve release of $2.1 billion. The results also include a $566 millionincome tax benefit related to finalizing the firm’s 2020 US federal tax return, which equals a $0.19 increase in EPS.

JP Morgan shares are sitting just above $165 prior to market open having dropped from an all-time high last week as overall market sentiment worsened. The shares are still up 66% from the same time last year, having pulled back to $139 per share during the third quarter, but the short-term outlook looks rather subdued.

JP Morgan Daily Chart

Earnings Season: JP Morgan and Blackrock Blow Past Estimates

Source: Refinitiv

 

image.jpeg

 

Blackrock: net revenue in the third quarter was $5,050 million a 16% increase on revenue year on year, beating estimates of $4,807 million. Net income comes in at $1,681 million with$98 billion of long-term net inflows driven by continued momentum in ETFs and active strategies. The asset manager’s earnings were boosted by an improving economy, increasing assets under management to 9.46 trillion dollars, a 21% increase from a year earlier. Adjusted net income rose to $10.89 per share, up from $9.22 per share a year earlier, and above estimate of $9.35 per share.

Blackrock shares are currently up 15 dollars or 2% at the pre-market, trading around $853 after earnings beat expectations but this is still 11% down from their peak in August as fears of stagflation dampen market sentiment amid rising energy prices. Blackrock’s growth is mostly organic and so future guidance continues to be positive, but the fourth quarter looks set to be steeper for share prices to rise and so we may struggle to see a new all-time high before year-end.

Earnings Season: JP Morgan and Blackrock Blow Past Estimates

Source: Refinitiv

Learn more about the stock market basics here or download our free trading guides.

Written by Daniela Sabin Hathorn, Market Analyst, 13th October 2021. DailyFX

Link to comment

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      16,225
    • Total Posts
      77,665
    • Total Members
      64,414
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Ayad
    Joined 19/10/21 03:05
  • Posts

    • Video presentation from Dr McCullough who has been posting on covid since the start. Reveals some truly concerning information on the current situation re; covid and the vaccines. - Looks at independent safety oversight (none). - Treatment protocols early and late (officially there is still no early treatment) - CDC reporting (misleading systematic asymmetrical bias) - Delta and legacy alpha data (99% of cases are now delta) - Major conflicts of interest. Really horrifying that this worldwide trial with intended 100% participation has no safety oversight at all, there is no one to stop it as the data on the vaccines is increasingly disturbing. Scientific, covers the important points of many research papers, fast paced but clear and pointed. The most important video I've seen on covid and the vaccines, covers a lot of ground, absolutely must watch. (1h:50min) Pub'd 24 Sept 2021.   The Covid testimony of Dr Peter McCullough – Part 1: Cancelled for telling the truth - The Conservative Woman  
    • I'd go with that - I'm working off the Interaction of the Interest Rate cycle and the Stock Market cycle - Stock turned Inflationary from a cycle perspective late 2016, from deflationary which started 2000, for that 16 year cycle everything deflationary has happened and the action to try to create inflation - Robert Pretcher (Elliott Wave International) wrote "Conquer the crash" in 1999 - although he is/was wrong on the stock market outlook, the rest of the book was pretty much spot on from a central bank/economic aspect tackling deflationary pressures etc From a cyclic point of view the stock market cycle from 2000 basically repeated the 1929 crash cycle, x cycles back in the same stock market cycle - last time BoE Int rates were depressed for 22 years was from 1929 until 1951 which coincided with said stock market cycle  We've a generation of people who think Interest rates are always this low! the shock should be in the property market and especially anyone with a Buy to Let Investment property that has got a bad/poor yield as well as mortgaged to the hilt - they'll more than likely see negative returns once taxation and costs running it are taken into account, which will be good for FTB's as they'll have a nice supply of affordable housing stock to pick from as the rise to normality for Int rates should then cause a dip in the property market (possibly)  Different rules apply to the markets during deflationary and Inflationary cycles and you find that central banks aren't on it in terms of getting it right which is why they got caught out in 2003 / 2009 and now with Inflation to which they [BoE] should react to Inflationary pressures by raising rates even though we all know for some time Inflation has been occurring Fun times
    • Hi @THT Traders now see 40 basis points of tightening this year to take the key rate to 0.5%, compared with around 20 basis points last week. They also see further rate increases next year, betting that borrowing costs will climb to 1.25% in November 2022. According to Bloomberg. Yet there’s a growing sense that higher rates risk damaging the U.K.’s fragile economic recovery. Economists surveyed by Bloomberg have cut their estimate for 2022 growth by 0.4 percentage points to 5.1%.        MongiIG
×
×
  • Create New...