JP Morgan (JPM), BlackRock (BLK) post better-than-expected Q3 profits

Highlights

  • The Morgan Chase & Co’s (NYSE: JPM) net revenue rose 1% YoY in Q3, FY21.

  • The revenue of BlackRock, Inc. (NYSE: BLK) surged 16% YoY in Q3, FY21.

  • BLK’s profit was US$10.89 per diluted share in Q3, FY21, topping analysts' forecast.

JP Morgan Chase & Co. (NYSE: JPM) and BlackRock, Inc. (NYSE: BLK) reported strong third-quarter revenue growth on Wednesday, pushing their stock prices higher in premarket.

The JPM stock traded at US$166.70, up 0.81%, while BLK traded at US$849.00, up 1.53% at around 8:05 am ET from their previous closing price.

Here’s a peek at the quarterly earnings.

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JP Morgan Chase & Co. (NYSE: JPM)


JP Morgan Chase & Co. is an investment banking and financial services company based in New York. It provides its services to individual customers and businesses.

JPM’s third-quarter earnings beat Wall Street analysts' projections, boosted by mergers and acquisition activities. Its net revenue was US$29.64 billion in Q3, FY21, up 1% or US$392 million, compared to the year-ago quarter. It managed revenue of US$30.44 billion in Q3.

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The company’s net income jumped 24% YoY to US$11.68 billion in the quarter ended September 30. Its diluted EPS came in at US$3.74, compared with US$2.92 in Q3, FY20. The analysts projected an EPS of US$3.00 in the third quarter, the Refinitiv data showed.

The bank has released US$2.1 billion from its credit reserves in the third quarter of fiscal 2021.

JP Morgan Chase has a market cap of US$494.12 billion, a P/E ratio of 11.03, and a forward P/E one year of 11.71. Its EPS is US$14.99. The 52-week highest and lowest stock prices were US$171.51 and US$95.24, respectively. Its trading volume was 13,032,630 on October 12.

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JPMorgan Chase & Co. (JPM) and BlackRock, Inc. (BLK) stocks rally after strong quarterly earnings.

BlackRock, Inc. (NYSE: BLK)


BlackRock is an investment and risk management firm based in New York and caters to institutional and retail clients. BlackRock reported strong third-quarter results, beating analysts' expectations, on Wednesday.

On a GAAP basis, its revenue was US$5.05 billion in Q3, FY21, an increase of 16% YoY. Its operating income was US$1.93 billion compared to US$1.75 billion in the year-ago quarter.

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The net income came in at US$1.68 billion, or US$10.89 per diluted share, compared with US$1.36 billion, or US$8.87 per diluted share, in the third quarter of fiscal 2020. Analysts expected a profit of US$9.35 per share in the third quarter, Refinitiv data showed.

Its market cap is US$127.26 billion, the P/E ratio is 23.5, and the forward P/E one year is 21.99. Its EPS is US$35.58. The stock saw the highest price of US$959.88 and the lowest price of US$587.90 in the last 52 weeks. Its share volume on October 12 was 823,251.

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Bottomline


The financial sector saw significant growth from last year boosted by Fed’s consumer-friendly monetary policy and bigger household savings. The JPM stock surged 31.37% YTD, while BLK rose 17.64% YTD. Investors, however, should evaluate the companies before investing in stocks.

 

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