JPMorgan Chase 3Q 2017 earnings are set for release tomorrow before opening bell, and analysts are looking for earnings of $1.67 per share on $25.9 billion in revenue. In last year’s third quarter, the firm reported earnings of $1.58 per share on $25.5 billion in revenue.
Bank stocks have been riding the wave of momentum for much of the year as the U.S. Federal Reserve starts hiking interest rates and the Trump administration continues to clang the bell of tax cuts. In general, Wall Street is expecting the JPMorgan Chase 3Q 2017 earnings report to reveal weakness in investment banking but strength in commercial banking.
The second quarter was rough for the firm’s Corporate and Investment Banking division, so it comes as no surprise that the weakness likely continued during the third quarter. Zacks estimates $8.55 billion in net revenues, representing a 9.5% year-over-year decline.
The firm pegs the bank’s Consumer and Community Banking net revenues at $11.69 billion, which would be a 3.2% increase from last year’s result. Zacks looks for $3.23 billion in Asset Management revenues, a 6% year-over-year increase, and $2.14 billion in Commercial Banking revenues, a 14.7% increase from last year.
Wall Street generally expects the commentary from JPMorgan Chief Executive Jamie Dimon to be upbeat, particularly on the prospect of corporate tax cuts and another interest rate hike in December. Both of these events would boost profitability throughout the Financials sector, and this is why bank stocks in general have been riding high of late.
The bank’s stock ticked lower by as much as 0.33% to $96.81 the day before JPMorgan Chase 3Q 2017 earnings. JPMorgan Chase shares have been hovering right around their all-time high of $97.64 for quite some time, so the third-quarter earnings report is a make or break one that could either send them over the $100 psychological level or keep them under a ceiling. JPMorgan Chase has been riding along on a somewhat steady uptrend since the November 2016 election, but what is really needed for the bank to soar firmly into the triple digits is for the Trump administration to make good on some of the Donald’s campaign promises, which landed him in the Oval Office.