JPMorgan's Q3 Expected To Continue Its 6-Quarter Streak Of Beating Estimates

Barclays expects JPMorgan Chase & Co. JPM to report above-consensus earnings per share, extending the six-quarter streak of earnings outperformance.

Analysts Jason Goldberg expects the company to report Q3 earnings of $1.48 per share, above the $1.38 per share consensus estimate. The analyst expects one-time gains/charges to continue to influence results.

The analyst expects modest balance sheet expansion relative to the second quarter, a relatively stable net interest margin, lower fee income, seasonally soft trading revenues, higher mortgage and asset management fees, relatively stable expenses, sound asset quality trends, a lower tax rate and continued share repurchase.

Performance By Businesses

• Corporate & Investment Bank – lower revenues on seasonally slower trading results and investment banking fees
• Consumer & Business Banking – Deposit Growth But Pressured Deposit Margin
• Mortgage – Better net results
• Card – Loan balance growth but revenue pressured by partnership renewal, although Sapphire sign-up and benign asset quality should help
• Commercial Banking – Loan growth, Asset quality positive but continued pressure in energy
• Asset Quality – better markets and activity to help
• Corporate/Private Equity – Mixed performance.

However, Barclays remain watchful on higher than expected Sapphire reserve, seasonally lower trading results, capital, expenses, the impact of the EU referendum and the weakness in energy.

Barclays has an Overweight rating and $79 price target on shares.