Now it’s JPMorgan Chase’s (JPM) turn. The bank just reported very strong earnings for the second quarter. Actually, the firm’s profits dropped from last year’s second-quarter, 53 cents a share to 28 cents per share, but it was miles above Wall Street’s estimate of just four cents a share. That’s an earnings surprise of 600%!
The bank has already paid off its TARP money when it returned $25 billion to Uncle Sam plus nearly $800 million in dividends. The earnings report was pretty complicated since JPM’s saw its net earnings rise by 36% so the number of shares outstanding was much higher. Revenue rose 39% to $25.6 billion.
I currently rate JPMorgan Chase a “B – Buy” in Portfolio Grader.