JPMorgan Chase and Goldman Sachs reported record-breaking second-quarter results on July 14, yet their own chief executives cautioned that the exceptional performance may not be sustainable. JPMorgan posted net income of $21.2 billion, or $7.70 per share, including a $4.6 billion Visa stake gain, with core earnings of $6.14 per share beating the $5.80 consensus. Goldman Sachs saw a 92% year-over-year surge in diluted earnings per share to a record $20.98, far above the $14.54 estimate, driven by a 72% jump in equities trading revenue to $7.42 billion and a 130% increase in equity underwriting fees to $985 million. JPMorgan CEO Jamie Dimon told analysts that conditions are “getting close to as good as it gets,” citing geopolitical tensions and sticky inflation as risks to the current pace of trading and dealmaking. Despite the blowout numbers, JPMorgan trades at a forward price-to-earnings ratio of 14.04 times, only modestly above the industry median, while Goldman Sachs faces internal skepticism with JPMorgan’s own research desk rating the stock Neutral with a $900 price target, well below the broader consensus range of $1,019 to $1,073.
JPMorgan Chase & CoRecord quarterly earnings and revenue beats, with core EPS above consensus.
Visa Inc. Class A
Goldman Sachs Group IncRecord quarterly earnings and revenue beats, with EPS far above consensus.