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Wall Street expects JPMorgan Chase & Co (NYSE: JPM) to start the earnings season on a constructive note on Friday.

JPMorgan Q1 earnings expectations

The financial services behemoth will likely raise its guidance for net interest income as well, says Scott Siefers – a Piper Sandler analyst.

JPM currently sees its NII to be around $90 billion this year versus $89.3 billion in 2023. According to Siefers:

JPMorgan has best mix of attributes among universals: ultra-conservative [NII] guidance, strong capital base/return potential, excellent risk profile, and great positioning for this IB recovery.

Note that Wall Street expects the investment bank to report $4.15 of earnings on a per-share basis and $41.84 billion in revenue for its first financial quarter on Friday. Ahead of the quarterly report, $JPM is up 17% versus its year-to-date low.

What else to look for in JPM’s quarterly report

If JPMorgan decides against lifting its outlook for net interest income tomorrow – it will likely revise it at its investor day in May, as per Morgan Stanley analyst Betsy Graseck.

The New York listed giant may also signal an increase in share repurchase or a second dividend hike on Friday, she added.

Analysts also recommends looking for an update on Frist Republic in its earnings report. $JPM took over the commercial bank last year that Mike Mayo of Wells Fargo expects will eventually deliver annual incremental earnings of about $2.0 billion or 40 cents a share.

Wall Street currently has an average price target of $209 on JPMorgan stock that suggests 7.0% upside as it could benefit from fewer rate cuts in 2024. Markets see a rather slim chance of a rate cut in June after a hotter-than-expected inflation report this week (find out more).

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