JPMorgan Chase Co. Earnings: Another Quarter of Falling Net Income

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S&P 500 (NYSE:SPY) component JPMorgan Chase & Co. (NYSE:JPM) reported its results for the first quarter. J.P. Morgan Chase is a global securities, investment banking and retail banking firm with operations worldwide.

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JPMorgan Chase Earnings Cheat Sheet for the First Quarter

Results: Net income for JPMorgan Chase & Co. fell to $5.4 billion ($1.31 per share) vs. $5.55 billion ($1.28 per share) a year earlier. This is a decline of 3% from the year-earlier quarter.

Actual vs. Wall St. Expectations: JPMorgan Chase & Co. beat the mean analyst estimate of $1.17 per share.

Quoting Management: Jamie Dimon, Chairman and Chief Executive Officer, commented on financial results: “The Firm reported strong revenue1 for the first quarter of 2012 of $27.4 billion, up 24% compared with the prior quarter and up 6% compared with prior year. While several significant items affected our results, overall, the Firm’s performance in the first quarter was solid. The Firm’s return on tangible common equity1 for the first quarter of 2012 was 16%, compared with 11% in the prior quarter and 18% in the prior year.”

Key Stats:

The company has now seen net income fall in each of the last three quarters. In the fourth quarter of the last fiscal year, net income fell 22.8% from the year earlier, while the figure fell 3.5% in the third quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 90 cents versus a mean estimate of net income of 92 cents per share.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for second quarter is $1.20 per share, an increase from $1.16 sixty days ago. The average estimate for the fiscal year has risen to $4.82 per share from $4.65 in the past month.

Competitors to Watch: Bank of America Corp., Wells Fargo & Company, Citigroup Inc., Goldman Sachs Group, Inc., Deutsche Bank AG, Morgan Stanley, U.S. Bancorp, SunTrust Banks, Inc., UBS AG, and KeyCorp.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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