Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

JP Morgan Shares Turn Higher as Investors Digest Tax Impact on Q4 Earnings

Published 01/12/2018, 06:53 AM
Updated 01/12/2018, 07:13 AM
© Reuters.  JP Morgan reports Q4 EPS of $1.76 when excluding tax reform impact

Investing.com – After shares in JP Morgan (NYSE:JPM) initially reacted to the downside, falling more than 1% in pre-market trade Friday, investors seemed to accept the fact that the hit to income was a result of the recent tax reform and shares managed to once again turn higher.

The bank reported that net income for the last three months of 2017 was $4.2 billion with earnings per share (EPS) of $1.07, while consensus was looking for earnings of $1.69 a share.

However, the largest financial services firm by assets noted that, excluding significant items, fourth quarter income would have been $6.7 billion, or $1.76 per share.

Under the heading for significant items, JP Morgan highlighted that it took a charge of $2.4 billion, or $0.69 per share, due to the recent tax overhaul.

Meanwhile, the company’s revenue came in at $24.2 billion, compared to the forecast of $25.18 billion.

Chairman and chief executive Jamie Dimon commented that 2017 was a record year for JP Morgan as the bank added clients and customers and delivered a “record EPS”.

“The enactment of tax reform in the fourth quarter is a significant positive outcome for the country,” Dimon stated.

“U.S. companies will be more competitive globally, which will ultimately benefit all Americans,” he explained.

“The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages,” he added.

“We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments,” Dimon concluded.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Prior to the report, JP Morgan shares had been trading mostly flat, barely in positive territory. The initial reaction to the report saw shares drop more than 1%. However, at 7:15AM ET (12:15GMT), shares once again changed direction and gained 0.44% to $111.32.

Investors now look forward to JP Morgan's conference call at 8:30AM ET (13:30GMT).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.