Should I buy JPMorgan shares ahead of first-quarter earnings results?

JPMorgan Chase & Co (NYSE: JPM) shares have weakened more than 15% since the beginning of the 2022 year, and the current price stands at $136.31.

JPMorgan is scheduled to announce first-quarter earnings results on Wednesday, April 13, before the market opens, and according to Troy Rohrbaugh, the head of markets for JPMorgan Chase, revenue would likely be down from a year earlier.

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Russia’s attack on Ukraine remains in focus

JPMorgan will announce first-quarter earnings results on April 13, and according to Troy Rohrbaugh, the head of markets for JPMorgan Chase, there is a lot of uncertainty going forward.

The uncertainty of potential outcomes between Ukraine and Russia continues to worry investors, and the global economy could soon be faced with one of the largest energy supply shocks ever.

JPMorgan has stopped conducting new business in Russia amid the country’s invasion of Ukraine and remains in the process of winding down its remaining business in Russia. Troy Rohrbaugh added:

The markets are extremely treacherous at the moment, and there are a lot of clients that are under extreme stress. Turbulence stemming from the Russia-Ukraine war and related sanctions from western nations has spread across commodities especially but also through fixed income and equity markets.

Troy Rohrbaugh said that revenue would likely be down in the first quarter from a year earlier; still, CFO Jeremy Barnum said that he expects a core net interest income to grow to $53 billion in 2022, up $3 billion from its prior forecast.

JPMorgan’s outlook for net interest income is based on an expectation of six interest rate hikes in 2022, while the prior outlook in January had assumed three to four hikes.

Fed Chair Jerome Powell warned that “inflation is much too high,”  and interest rates could rise quicker than previously expected to combat high inflation.

CFO Jeremy Barnum also said that it is “entirely plausible” the bank could deliver a 17% return on tangible common equity in 2023, a year earlier than many analyst models predict.

This month, the board of directors declared a $1/quarterly share dividend, which will be payable on April 30 to stockholders of record as of April 06, 2022.

JPMorgan has a strong balance sheet, the current dividend yield stands around 2.85%, and with a market capitalization of $416 billion, shares of this bank are reasonably valued.

Technical analysis

The important support level stands at $130, while $150 represents the first resistance level. If the price falls below $130, it would be a firm “sell” signal, and we have the open way to $120.

On the other side, if the price jumps above $150, the next target could be around $160.

Summary

JPMorgan will announce first-quarter earnings results on April 13, and according to Troy Rohrbaugh, the head of markets for JPMorgan Chase, there is a lot of uncertainty in the future. Troy Rohrbaugh said that revenue would likely be down in the first quarter from a year earlier, and the uncertainty of potential outcomes between Ukraine and Russia continues to worry investors.

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