Lucky Friday the 13th for JPMorgan - Analyst Blog
the article was posted by Kalyan Nandy from Zacks.com in Investing, Business, Stocks
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Referenced Stocks: BAC, C, DVA, GS, JPM
Proving pessimists wrong, JPMorgan Chase & Company ( JPM ) reported second quarter earnings per share of $1.21, way ahead of the Zacks Consensus Estimate of 78 cents. However, this compares unfavorably with $1.27 earned in the prior-year quarter.
Most importantly, due to an imprudent hedging strategy, the company incurred a derivative trading loss of $4.4 billion (before taxes) in its chief investment office (CIO) for the period, up more than two-fold from what was disclosed on May 10.
Despite the huge trading loss, JPMorgan's better-than-expected earnings signal good going by the sector. A marked recovery of the bond and equity market and the consequent strong performances by its business segments, which helped JPMorgan overcome its difficulties to a great extent, should lift the results of other mega banks during the quarter.
