Bullish options flow was detected in JPM stock on January 14, 2020, after the company reported earnings and revenue beats.
JPMorgan Chase & Co. has released its fourth-quarter and full-year 2019 financial results. JPMorgan reports Q4 EPS of $2.57 versus the consensus estimate of $2.35. The company reports Q4 revenue of $28.3B and managed revenue of $29.2B, versus the consensus estimate of $27.96B.
Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the Firm where we achieved many records, including record revenue and net income. While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year. The U.S. consumer continues to be in a strong position and we see the benefits of this across our consumer businesses. In Consumer & Community Banking, average deposits grew at 5%, somewhat aided by lower short-term rates, and we continued to add customers in new and existing markets, and deepen our customer relationships by offering great deposit, investment and lending products. The robust holiday season was reflected in our card sales volumes and loan balances, up 10% and 8%, respectively.” Dimon continued: “The Corporate & Investment Bank generated record fourth quarter revenue – including for the Markets business, which rebounded from a challenging prior year. For the quarter, Global Investment Banking fees were up slightly from a strong performance last year, and for the full year we grew our IB fee wallet share to its highest level in a decade, maintaining our #1 rank for the 11th consecutive year. Commercial Banking earned a record $2.7 billion of IB revenue in 2019 and continued to add new client relationships on the back of our investments in bankers and technology in the U.S. and abroad. In Asset & Wealth Management, we grew loans and deposits at a healthy pace, and for the full-year, we brought in record long-term net flows of $100 billion… We continue to invest in and grow our businesses. For example, in 2019, we added over 70 new branches in 16 new markets, continued our Commercial Banking international expansion, and became the first U.S. bank to be approved for a majority-owned securities business in China. We continue to make large investments in technology, including AI, cloud, digital and payments, as well as other investments in innovation, talent, security and risk controls. These actions will help us continue to grow and serve our clients going forward. I am extremely proud of how we serve our customers, clients and communities globally – we stand by them in good times and in tough times, and work to earn their trust every single day.”
On January 9, 2020, Buckingham analyst James Mitchell told investors in a research note that he would emphasize the brokerage stocks over the banks this year, as not only are they less expensive, but that expectations around growth embedded in consensus are quiet modest. The analyst upgraded Goldman Sachs (GS) and downgraded Northern Trust (NTRS), and said Citi (C) remains a top pick for the second year in a row. He also emphasized Morgan Stanley (MS) and Regions Financial (RF) as the cheapest brokers relative to historical multiples in his coverage universe. The analyst raised his price target for Bank of America (BAC) to $40 from $35, for BNY Mellon (BK) to $56 from $50, for Citi to $100 from $86, for JPMorgan (JPM) to $140 from $122, for Morgan Stanley to $65 from $55, for State Street (STT) to $95 from $84, for Regions Financial to $110 from $108 and for Wells Fargo to $55 from $47.