JPMorgan's Q1 Revenue Up by 9% to $41.93 Billion, but Guidance Disappointed

Energy and Utilities stocks seem to be the only moderately valued sectors across the entire broad U.S. equity indices as this earnings season started.

JPMorgan Chase (JPM) shares fell 3.9% in premarket trading today after the company's net interest income (“NII”) forecast was lowered (more below). Q1 2024 non-GAAP EPS came in at $4.63, above consensus average estimate of $4.13, and rose from $4.10 compared with Q1 2023 and from $3.97 compared with Q4 2023. Meanwhile, adjusted revenue was $42.5 billion, compared with $39.9 billion in the prior quarter and $39.3 billion in the year-ago period.

Provision for credit losses visibly moderated and amounted to $1.88 billion, compared with consensus estimate of $2.75 billion now, $2.76 billion in Q4 2023, and $2.28 billion in Q1 2023.

Net interest income was $23.1 billion, in line with consensus estimate, but down from $24.05 billion in the previous quarter and up from $20.7 billion in the same period last year.

“This quarter, NII declined 4% sequentially, and as expected, NII ex. Markets declined 2% sequentially due to deposit margin compression and lower deposit balances, mostly in CCB. Looking ahead, we expect normalization to continue for both NII and credit costs,” wrote CEO Jamie Dimon in the accompanying note.