JPMorgan Q2 Earnings Revealed: Are Stock Analysts Underestimating Growth Potential?

New York – JPMorgan is set to unveil its financial results for the second quarter of 2024 on Friday, July 12th, before the markets open. Analysts are anticipating earnings per share of $4.18, with revenue expected to reach $42.15 billion. This represents a projected year-over-year decline of 4% for earnings per share and 1% for revenue.

Comparatively, the company faces a challenging comparison to the second quarter of 2023, where revenue and earnings per share saw significant growth of 34% and 54%, respectively. In the previous quarter, Q1 of 2024, JPMorgan experienced a growth of 11% in net revenue and 13% in earnings per share, driven primarily by net interest income and trading revenue. Return on tangible common equity stood at 22% for the first quarter.

Analysts have revised their estimates for earnings per share and revenue, indicating a positive outlook for JPMorgan’s growth in 2024. The Corporate & Investment Banking segment, which contributes significantly to operating revenue and profit, is expected to play a crucial role in driving earnings per share upside. The bank is likely to benefit from the record corporate bond issuance observed in the first half of 2024.

Furthermore, JPMorgan recently announced a 9% increase in dividends to $1.25 per share and a $30 billion stock buyback program following the results of the Fed’s stress tests. The bank also provided optimistic guidance for investment banking revenue, hinting at a potential increase of 25-30% from previous estimates.

As for Citigroup, the company is expected to report earnings per share of $1.39 and revenue of $20.074 billion for the second quarter of 2024. This reflects year-over-year growth of 5% and 3%, respectively. Despite challenges in aligning expenses with net revenue, Citigroup has shown progress under CEO Jane Fraser.

Looking ahead, both JPMorgan and Citigroup will continue to navigate changing market dynamics and economic conditions to drive growth and maintain profitability. The banking sector remains favorable with strong capital positions and a supportive market environment, setting the stage for potential future success for these financial giants.