Banking giant JPMorgan held its Q1 2025 earnings call before the market opened on April 11. JPM stock (NYSE: JPM), which closed at $227 a day prior, surged by 3.68% to $235.36 within 20 minutes.
By press time, the price of JPM shares had receded to $231.73, with weekly gains standing at 10.88%.
So, what caused the rally? Earnings per share (EPS) came in at $5.07, outpacing consensus estimates by a fair margin of 45 cents. Revenues, at $46 billion, also came in above the average forecast of $43.9 billion, and marked a steady 8% in year-over-year (YoY) growth.
A key tailwind for the quarter’s strong results was stock trading, as equities trading revenue surged by a whopping 48% compared to the first quarter of 2024, reaching a record of $3.8 billion and topping Street estimates by $560 million
CEO Jamie Dimon issued a stern warning — and JPM stock is not immune to it
Despite the fact that a standout earnings quarter and a surge in JPM stock price usually inspire confidence, the actual earnings call was dominated by a cautious tone at best. Chief executive officer (CEO) Jamie Dimon stated that:
“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits, and still rather high asset prices and volatility”
Readers should keep a close eye on earnings calls next week — as many of the largest banks, such as Goldman Sachs, Bank of America, and Citibank, will hold their respective earnings calls.
Despite a string of high-profile insider sales in February, the finance giant, which was the first bank to forecast a 2025 recession, seems to be on the mend — and at a forward price-to-earnings (PE) of just 13.63, JPM stock is still quite cheap relative to the wider market.
Featured image via Shutterstock
