JPMorgan Chase & Co. Just Recorded A 33% EPS Beat: Here's What Analysts Are Forecasting Next
JPMorgan Chase & Co. (NYSE:JPM) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat both earnings and revenue forecasts, with revenue of US$29b, some 3.4% above estimates, and statutory earnings per share (EPS) coming in at US$2.92, 33% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on JPMorgan Chase after the latest results.
See our latest analysis for JPMorgan Chase
Taking into account the latest results, the most recent consensus for JPMorgan Chase from 16 analysts is for revenues of US$112.1b in 2021 which, if met, would be a decent 14% increase on its sales over the past 12 months. Per-share earnings are expected to expand 16% to US$8.92. Before this earnings report, the analysts had been forecasting revenues of US$111.9b and earnings per share (EPS) of US$8.79 in 2021. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$117, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values JPMorgan Chase at US$144 per share, while the most bearish prices it at US$80.00. As you can see, analysts are not all in agreement on the stock’s future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting JPMorgan Chase’s growth to accelerate, with the forecast 14% growth ranking favourably alongside historical growth of 3.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect JPMorgan Chase to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$117, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have forecasts for JPMorgan Chase going out to 2024, and you can see them free on our platform here.
You can also see our analysis of JPMorgan Chase’s Board and CEO remuneration and experience, and whether company insiders have been buying stock.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].
