Update: JPMorgan Earnings

Jul.15.14 | About: JPMorgan Chase (JPM)

Summary

EPS of $1.46/share strong beat of $1.29 consensus.

Timing of results surprise, especially breadth of improvement, but consistent with franchise strengths.

Reiterate JPM is a "Buy" with appreciation potential and nice dividend.

This morning JPMorgan (NYSE:JPM) announced earnings that are sure to please (read "Poised to Outperform While Yielding 3%" for more information on JPM). JPM reported a profit of $1.46/share, significantly higher than the $1.29 analysts had predicted. The company showed improvement in its core lending business, investment banking, asset management and had positive late quarter trends in trading. Only mortgage originations were weak. JPM repurchased $1.5 billion in shares during the quarter.

While I did not expect JPM to have such a blowout quarter, its results are consistent with the long term franchise value of the bank. As the economy recovers, JPM will be able to leverage its infrastructure and grow earnings.

The quarter supports my thesis regarding the underlying value of JPM; I continue to believe it is a good investment and appreciate the 3% dividend.

Disclosure: The author is long JPM. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.