Trading JP Morgan Around Earnings

JP Morgan (JPM) is expected to report earnings on Friday, January 13th. The whisper number is $1.50, six cents ahead of the analysts' estimate and showing confidence from the WhisperNumber community. Whispers range from a low of $1.42 to a high of $1.55. JPM has a 71% positive surprise history (having topped the whisper in 42 of the 59 earnings reports for which we have data).

Earnings history:

  •  Beat whisper: 42 qtrs
  •  Met whisper: 1 qtrs
  •  Missed whisper: 16 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock's price will move following an earnings report can help you determine the best action to take (long or short). In other words, we analyze what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

The strongest price movement of -1.4% comes within thirty trading days when the company reports earnings that beat the whisper number, and +4.6% within ten trading days when the company reports earnings that miss the whisper number. The overall average post earnings price move is 'opposite' (beat the whisper number and see limited weakness, miss and see strength) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction:

The company has reported earnings ahead of the whisper number in four of the past four quarters with a whisper number. In the comparable quarter last year the company reported earnings three cents ahead the whisper number. Following that report the stock realized a 3.6% loss in five trading days. Last quarter the company reported earnings twenty-three cents ahead of the whisper number. Following that report the stock realized a 1.9% loss in one trading day, before turning and seeing a 15.6% gain in twenty trading days. Overall historical data indicates the company to be (on average within thirty trading days) an 'opposite' price reactor when the company reports earnings.

Enter your expectation and view more earnings information here, or let us know your expectation in the comments section below. 

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Chee Hin Teh 7 years ago Member's comment

Thanks for sharing