JPMorgan Stock Is Likely To Beat Consensus In Q1

SectorFinancial Markets
CountryMiddle east

Share to Linkedin JPMorgan (NYSE: JPM) is scheduled to report its fiscal Q1 2021 results on Wednesday, April 14. We expect JPMorgan to likely beat the consensus estimates for revenues and earnings. The bank has outperformed the consensus estimates in each of the last three quarters, primarily driven by a jump in the Corporate & Investment Banking segment led by higher sales & trading and investment banking revenues. However, the above growth was partially offset by some weakness in the Consumer & Community Banking segment due to the lower interest rates environment.

We expect the sales & trading and investment banking revenues to drive the first-quarter FY2021 results as well. Further, recovery in bond yields over the recent months is likely to benefit core-banking revenues. Additionally, JPM released $2. 9 billion from its loan-loss-reserve in the fourth quarter, suggesting some improvement in the perceived loan default risk. We expect the same momentum to continue in the first quarter. Our more...