Earnings Preview For J.P. Morgan (JPM)

J.P. Morgan JPM reports 2011 first-quarter earnings before the opening bell on Wednesday April 13. Analysts expect a profit of $1.16 per share on revenues of $25.48 billion. The profit figure would represent strong growth of 56.80% over the same period last year. Earnings estimates have increased $0.10 over the past 90 days. Investors are optimistic that the company will exceed estimates. Other than the headline number, analysts are looking at commercial loan activity and credit quality. Trading revenues are always volatile, but investors are always interested in how this metric fares. On the downside, investors will examine the company's litigation expenses. Last quarter, J.P. Morgan added $1.5 billion to its litigation reserves. J.P. Morgan has a terrific recent history of exceeding estimates. It has done so in each of the past four quarters by at least 12%. The stock is reasonably priced at less than 10x current-year estimates of $4.76 per share. It has performed well and is only about 4% below its 52-week high. A strong report and rosy outlook could pave the way for new highs. The company provides various financial services worldwide. The company's Investment Bank segment provides investment banking products and services, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, and prime brokerage and research.