It’s that time again.Yes, it’s earnings season and JP Morgan Chase, the largest bank on Wall Street is kicking it all off tomorrow at 7:00 am.
Normally, a JP Morgan announcement would be a nice little ease-on-in to the season. This time, though, it’s different — there’s a 300 lbs whale in the room.
Ever since the bank announced a $2 billion trading loss in its London Chief Investment Office this spring, everything that everyone assumed about the bank (that it was the safest, best run bank on the Street, for one) has been thrown into question.
Here’s what people are especially freaked out about: After two testimonies on Capitol Hill, CEO Jamie Dimon is discussing clawbacks for executives involved with the loss, and on tomorrow’s call he’s expected to say that the ultimate damage (now that all is almost said and done) totals about $5 billion.
On the other hand, most analysts are still calling JP Morgan a buy.
Now for the numbers. Here’s what Wall Street’s expecting tomorrow (from Forbes):
Current Wall Street estimates reflect a 36.2% decline from the year-ago quarter, when the company reported earnings of $1.27 per share.
Over the past three months, the consensus estimate has sagged from $1.19. Analysts are projecting earnings of $4.30 per share for the fiscal year.
A year after being $30.57 billion, analysts expect revenue to fall 28.3% year-over-year to $21.91 billion for the quarter. For the year, revenue is expected to come in at $96.58 billion.
Honestly, we don’t know if we’ll sleep tonight in anticipation.