JPMorgan and Goldman Sachs earnings preview: Strong growth expected for Q4 2024
JPMorgan Chase and Goldman Sachs are set to report Q4 2024 earnings on January 15, with analysts expecting robust performance from both banking giants.
JPMorgan Chase Q4 earnings expectations
JPMorgan Chase is expected to report adjusted earnings per share of $4.10, representing an impressive 23.8% year-over-year (YoY) growth. The bank's revenue is forecast at $41.94 billion, up 1.41% from the previous quarter.
Net income is projected to reach $11.67 billion, showing strong growth of 20.2% compared to the same period last year. The bank's return on equity remains robust at 14.12%.
The bank's capital markets revenue strength positions it well for 2025, with core net interest income expected to show resilience supported by the current rate environment.
JPMorgan has consistently beaten earnings estimates, with successful beats in 8 out of 8 past quarters for GAAP earnings per share. The current share price of $239.87 suggests room for growth toward the consensus target of $253.79.
Goldman Sachs Q4 earnings outlook
Goldman Sachs is forecast to deliver adjusted earnings per share of $8.21, with quarterly revenue expected to reach $12.37 billion - a 2.40% increase quarter-over-quarter (QoQ).
The investment bank's net income is projected at $2.71 billion, with return on equity standing at 9.98%. Analysts expect YoY growth of 2.97% in GAAP earnings.
Strong institutional client activity and improving fee income are expected to drive performance. The bank has demonstrated consistent execution, beating estimates in 5 out of 8 recent quarters.
The current consensus price target stands at $619.78, suggesting potential upside from the current price of $560.00.
Market implications for investors
Both banks have attracted strong analyst coverage, with JPMorgan receiving 17 buys, 9 holds, and 2 sells. Opportunities to trade may emerge based on results.
Goldman Sachs shows similar bullish sentiment with 17 buys, 9 holds, and 1 sell recommendation. The stock trading outlook remains positive for both institutions.
Investors using CFD trading should note potential volatility around the announcements.
Market participants should monitor both banks' guidance on trading revenues and net interest income outlook for 2025.
Trading volumes and volatility expectations
The average implied one-day move for JPMorgan is 3.13%, while Goldman Sachs shows a slightly lower implied move of 2.12%.
These movements could create opportunities for traders using online trading platforms to capitalise on market reactions.
Traders should consider using appropriate risk management tools given the potential for increased volatility. The trading platform offers various features for managing exposure.
Historical data shows both banks have consistently beaten estimates, which could influence market expectations and trading activity around the announcements.
JPMorgan and Goldman Sachs stock price technical analysis
JPMorgan stock hit a new higher high at the end of November in the wake of the US election. Since then it has weakened, though buyers entered to defend the $230.00 level in late December.
The stock price has rallied along with the broader market, but shows no sign of a longer-term change in direction as yet. However, continued weakness might bring the $230.00 level into play again as possible support. By contrast, a fresh rally through January’s highs could result in a fresh test of the November record highs.
JPM price chart
2024 was a much better year for Goldman Sachs when compared to 2023. 2023 saw the stock price struggle to make much headway, but it rediscovered its bullish momentum in 2024. Early December witnessed a new record high, and like JPMorgan the recent weakness has only put a small dent in the strong uptrend seen over the past twelve months.
GS chart
How to trade bank earnings
1. Research both banks' recent performance and market expectations
2. Choose whether you want to trade or invest
3. Open an account with IG
4. Select your preferred banking stock in our platform
5. Place your trade using appropriate position sizing and risk management
Online broker selection is crucial for trading US bank stocks effectively. Ensure you have access to comprehensive research and analysis tools.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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