Is JPMorgan Chase a Buy After Its Latest Earnings Report?
JPMorgan Chase reported strong second-quarter earnings that significantly exceeded analyst expectations, driven largely by its commercial and investment banking division. The bank saw a 28% increase in net revenue year-over-year, leading to a positive market reaction.
Why it matters
As a major financial institution, JPMorgan's performance is a key indicator of the health of the broader banking sector and the economy.
Investors and analysts alike expected JPMorgan Chase ( JPM +1.75% ) to do quite well this earnings season, but not this well. The powerful bank delivered a fine second quarter that crushed analyst estimates, thanks in no small part to a major part of its business that has produced meaty growth before.
All in all, Mr. Market was pleased with the bank's performance, rewarding it with a nearly 3% gain across Tuesday's trading session.
Chase published those quarterly figures well before market open that day, revealing that its net revenue was slightly over $57.3 billion. That was a very strong 28% higher year over year. Net income under generally accepted accounting principles (GAAP) increased even more robustly, by 41% to almost $21.2 billion ($7.70 per share).
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