JPMorgan Q4 Earnings Print Misses Expectations

Big bank earnings season continued Tuesday with JPMorgan Chase & Co. JPM catching the Street off guard with a notable earnings miss in its fourth-quarter results.

What Happened

JPMorgan said it earned $1.98 per share in the fourth quarter on revenue of $26.1 billion, which may not compare to Wall Street's estimates of $2.25 per share and $27.28 billion. Tuesday's earnings report marks the bank's first profit miss in 15 quarters, CNBC reported.

The earnings miss is mostly due to the fixed income business unit, which generated revenue of $1.86 billion versus expectations of $2.2 billion.

Net income during the fourth quarter improved from a loss of $1.314 billion a year ago to $7.066 billion, although last year's results includes a $2.4 billion reduction due to tax reforms. Net interest in the quarter rose 9 percent from last year to $14.5 billion while noninterest revenue was down 1 percent to $12.3 billion with "no notable drivers" present.

Why It's Important

JPMorgan CEO Jamie Dimon said in the press release 2018 was "another strong year" for the company as it generated record revenue and net income. In addition, each business unit improved revenue and net income for the year while simultaneously making investments in its business.

What's Next

Looking forward to 2019, Dimon called on U.S. politicians to "strike a collaborative, constructive tone, which would reinforce already-strong consumer and business sentiment." The CEO added the business community and government need to collaborate to "solve problems and help strengthen the economy for the benefit of everyone."

Shares traded around $98.20 at time of publication, down 2.7 percent.

Related Links:

Citigroup Kicks Off Big Bank Q4 Earnings With Mixed Results

Is It Finally Time To Consider Financial ETFs?

Photo credit: Steve Jurvetson: Jamie Dimon, via Wikimedia Commons