J.P Morgan Chase (NYSE: JPM), one of the biggest names in the financial services industry, is set to report its 4th quarter earnings of the fiscal year 2023. The hopes are high at Wallstreet considering the previous quarter’s growing earnings plus the all-time high mark of $173 that the JPM stock touched this year.
Fundamental Analysis and Earnings Forecast of JP Morgan Chase
The company has consistently grown its revenue over the quarters. The average compound rate was 10.3% which is way above the S&P 500 average. In the last quarter, the company reported a revenue of $39.9 Billion, and it also managed a revenue of $40.7 Billion. Average loans during the quarter also increased by 17% year on year. The company’s Debit and credit card sales volume was also up by 8%
Jamie Dimon, the CEO and Chairman of Chase said “While we hope for the best, we prepare the Firm for a broad range of outcomes so we can consistently deliver for clients no matter the environment”
Along with that, the company has been steadily profitable over the quarters contributing to the trailing twelve month’s Return on equity of 16.8%. Moreover, J.P. Morgan recently celebrated its Enterprise value is an all-time high of $1.23 Trillion surpassing 2021. The balance sheet of the company is stronger than ever with huge amounts of liquidity and low leverage.
Forecasted Revenue and EPS
| Quarter name | Revenue | Sales Growth | EPS | EPS Growth |
| Q4 2024 | $34,233 | $2.76 | ||
| Q1 2023 | $40,809 | 19.21% | $3.12 | 13.04% |
| Q2 2023 | $47,409 | 16.17% | $3.58 | 14.74% |
| Q3 2023 | $54,642 | 15.26% | $4.10 | 14.53% |
| Q4 2023 | $61,172 | 11.95% | $4.75 | 15.85% |
| Q1 2024 | $61,704 | 0.87% | $4.33 | -8.84% |
| Q2 2024 Forecast | $70,049 | 13.52% | $4.93 | 13.82% |
Forecast Method: Mean of Linear Regression and Average Growth
The Forecast suggests that there will be growth of 13.5% in revenue compared to quarter 3 while the EPS will be up by 13.8% to $4.93.
The Impact of the Forecasted Numbers on JPM Stock Price
If the numbers come near the forecasted ones, then there is a great chance that the JPM stock price will try to push toward its all-time high of $173.
The stock has been bullish for a long time crossing major resistance levels. At present, the support level for the JPM stock is at $158 which the bears can test if the earnings came negative. Otherwise, the resistance level of $172 will be tested for JPM stock price.
Summary
JP Morgan Chase is set to report its Q4 earnings for FY 2023. Over the quarters the company has posted steady growth. If the numbers match the forecast, it may push JPM stock price towards its all-time high of $173.
Technical Levels
- Support Levels: $158 and $147
- Resistance Level: $172
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
Source: https://www.thecoinrepublic.com/2024/01/12/jpm-stock-q4-2024-earnings-forecast-and-fundamental-analysis/