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A Summary On Financial Management

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Summary:

● Release: JPM released 2015 3Q earnings on 10/13/15 at 4:00 PM ET
● Earnings: JPM missed on earnings as they reported an adjusted EPS of $1.32 per share versus the consensus estimate of $1.38 per share
● Revenue: Revenue of $22.7 billion missed estimate of $23.8 billion due to lower CIB Markets revenue and lower Mortgage Banking revenue
● Stock Price: JPM was down $0.25, or 0.41%, to $61.30 as of 4:32 PM ET 10/13/15 in after-hours trading

JPM Stock Falls on 2015 3Q Revenue Miss:
JPMorgan Chase & Co. (NYSE: JPM), one of the largest banking institutions in the United States, reported third-quarter 2015 net income of $6.8 billion, or $1.68 per share, on revenue of $23.5 billion. However, the exclusion of unusual items such as tax benefits, legal expenses, and net reserve releases depressed net income to $5.4 billion, or $1.32 per share. These results surprised analysts as the financial services company failed to thrash the consensus estimate from 29 analysts of $1.38; which led to an immediate plunge of 1.56% in the stock price.
Stock Movement:
As you can see from the chart above, following the dispursement of the earnings report between trading days 10/13/15 and 10/14/15, JPM’s stock reacted negatviely. Prior to the release of this report JPM was trading at $61.56/share and following the release the stock opened down 1.72% or $60.50/share. However, following the large gap down, JPM managed to trade in a tight channel throughout the trading day. This tight channel

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