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JP Morgan will be kicking off earnings season for big financials tomorrow as the bank plans to release its 2011 fourth quarter report before trading starts.As the first large financial firm to announce its year-end earnings for 2011, JP Morgan will be setting the bar for other big banks like Citi, Goldman Sachs and Morgan Stanley, which are due to report next week.
The estimates for Q4 earnings-per-share for JP Morgan have fallen over the last months as analysts are predicting a consistently weaker earnings season for most financials based on decreased investment banking business and trading volumes. You can blame a volatile global economy for that.
JP Morgan CEO Jamie Dimon said investment banking and trading revenue is likely to be flat for the quarter, according to an analyst note from Goldman.
JP Morgan’s earning estimates have not been as hard hit as companies with only investment banking operations–such as Goldman and Morgan–because of its diversified retail banking services and offerings.
Right now, consensus estimates has the bank reporting earnings of about $0.90 per share. But the spread could be anywhere from $0.76 to $1.00 in EPS for a revenue between $21.08 billion to $24.17, according to First Call.
JP Morgan could have a record-breaking $18.5 billion in 2011 profits after one-time adjustments, according to Bloomberg. The bank did well in the first half of 2011 and reported two quarters of increased year-over-year profits, but the numbers fell -3.5% in the third quarter compared to the year before, according to Forbes.
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