JPMorgan Chase will be kicking off the earnings season for financials tomorrow as the bank plans to release its 2012 Q1 results before the opening bell. Right now, analysts, on average, are expecting the bank to post $1.18 EPS on revenue of $24.1 billion, according to data compiled by Bloomberg.
The big line items analysts are watching for is trading.
“We expect the large banks to kick off 2012 with respectable 1Q results. We look BAC, C and JPM to benefit from improved trading in 1Q,” Moshe Orenbuch, analyst at Credit Suisse wrote in a recent note to clients.
“Commentary around loan growth and demand, in addition to commentary regarding pace of capital deployment will be focal points. We are positively biased to large banks given stocks are seeing at attractive valuations given expectations for improved profitability and greater capital deployment of capital in 2012,” he wrote.
Last month, JPMorgan — the U.S.’s biggest bank by assets — passed the Fed’s “stress tests” and announced a $15 billion buyback ($12 billion approved for 2012) and an increased the per share dividend from $.25 to $.30.
Shares of JPMorgan rose 83 cents, or 1.89%, Thursday to close at $44.84. The bank’s stock was last up in after-hours trading.
Wells Fargo is also expected to report earnings before trading begins Friday. Check out Wells Fargo’s earnings preview here >