JP Morgan Chase & Co. (NYSE:JPM) shares are trading lower on Wednesday. The company reported fourth-quarter results on Tuesday.
Earnings Snapshot
On Tuesday, the company clocked a net income of $13.0 billion, or $4.63 per share, down 7% year over year (Y/Y). The adjusted earnings per share were $5.23, beating the $4.92 analyst estimate.
60 cents difference pertains to the $2.2 billion credit reserve established for the forward purchase commitment of the Apple credit card portfolio.
Looking ahead, JPMorgan expects fiscal 2026 net interest income of about $103 billion and net interest income excluding Markets of about $95 billion.
Analyst View
Goldman Sachs analyst Richard Ramsden reaffirmed a Buy rating and price forecast of $386.
Despite lower-than-expected revenues, JPMorgan reported in-line earnings on the back of better expenses.
The company witnessed strong loan growth trends, up 4% sequentially, which supported its above-expectations NII outlook, the analyst stated.
Following the results, the analyst raised its 2026 and 2027 Performance Profitability Net Revenue (PPNR) estimates by 2% and 3%, respectively, and increased EPS by 3% due to higher NII and fee income, and introduced the 2028 EPS projections.
Ramsden expects the bank to sustain the Return on Average Tangible Common Equity (ROTCEs) above its ~17% medium-term target, with 2026E and 2027E ROTCEs around 20% and 21%, respectively.
The analyst maintained the Buy rating, keeping the price forecast at $386.
Despite the generally positive results, the analyst expects JPM shares to remain range-bound until there is greater clarity on the potential effects of credit card APR limits and the Card Competition Act.
JPM Price Action: JPMorgan Chase shares were down 1.00% at $307.80 at the time of publication on Wednesday, according to Benzinga Pro data.
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