Earnings season is getting underway with JPMorgan Chase on Friday, but don’t expect its third-quarter results to turn the market around. So far this year, the investment bank has not started the season off upbeat, as shares have fallen in every post-earnings trading session. That’s even with the bank beating Wall Street’s expectations in its last two earnings reports. As shown by data from Bespoke Investment Group, JPMorgan fell more than 1% after its second-quarter results beat estimates . Shares fell even lower than that in the session following its first-quarter beat , seeing losses of more than 6%. That said, the stock is still solidly in the green in 2024. In fact, it’s outperformed all of the three major averages, jumping nearly 25% year to date. JPM YTD mountain JPM, year-to-date Heading into Friday’s results, analysts are bullish on the name. Among the 24 analysts covering it, 15 have a strong buy or buy rating. The remaining nine are neutral. Barclays in particular is one of those with a bullish stance. Analyst Jason Goldberg has an overweight rating on the stock, and his price target of $217 implies more than 2% upside from Thursday’s close. The analyst expects operating earnings per share to come in three cents higher than consensus. However, he also noted that net interest income may be under pressure. “NII should be modestly lower in the quarter, due to some [net interest margin] compression,” he wrote in a note to clients on Wednesday. “In addition, results should be impacted by seasonally lower trading activity (flat to up 2% y-o-y) while asset quality continues to normalize.” With that in mind, Goldberg is putting his focus on any insights from the bank about its forecast for 2025. While he expects JPMorgan’s net interest income to head lower next year as a result of higher expenses associated with its continued investments, he thinks the bank “still should shine,” even if it were to post a more conservative outlook.
