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JPMorgan Fell 11%: Will 2Q16 Earnings Give the Stock a Boost?

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Jul. 7 2016, Published 12:38 p.m. ET

Upcoming earnings announcement

JPMorgan Chase (JPM) is set to announce its 2Q16 earnings before the Market opens on July 14, 2016. Wall Street analysts surveyed by Bloomberg expect the bank to report EPS (earnings per share) of $1.45 for 2Q16 compared to $1.50 in the same quarter last year.

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Bank performances in 2016

So far, 2016 has been a rough year for the financial sector (XLF). Banks entered 2016 expecting four rounds of interest rate hikes. But things haven’t turned out in their favor.

Falling oil prices hurt banks’ earnings in the first quarter, and most banks expected earnings to improve in the second quarter. However, financials lagged in April and May as the Fed delayed an interest rate hike.

Then the Brexit vote on June 23, 2016, dragged financial stocks lower for June and led to a global sell-off of banks. A stronger dollar has also hurt bank profits with global operations.

In 2016, shares of JPMorgan Chase have fallen 11%. In comparison, shares of Goldman Sachs (GS), Citigroup (C), Wells Fargo (WFC), and Bank of America (BAC) have underperformed. They’ve generated returns of -20.6%, -22.1%, -15.8%, and -25.3%, respectively.

Series overview

In this series, we’ll explore analyst expectations for JPMorgan Chase’s 2Q16 earnings. We’ll also look at the bank’s 2Q16 guidance and the impact of the Brexit vote on its earnings, valuations, and analyst ratings for the stock.

First, let’s look at management guidance on JPMorgan’s 2Q16 earnings.

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