JPMorgan and Goldman Sachs earnings preview: strong growth expected for Q4 2024

JPMorgan Chase Q4 data

JP Morgan Chase is set to report its latest earnings on January 15, 2025 at 11:30pm SGT.

• Earnings per share (EPS): $4.10, a 23.8% year-on-year growth
• Revenue: $41.94 billion, up 1.41% from the previous quarter
• Net income: $11.67 billion, a 20.2% increase from last year
• Return on equity (ROE): 14.12%.

Capital markets and net interest income: JPMorgan's capital markets revenue strength is well-positioned for a robust 2025, bolstered by the resilience in core net interest income which benefits from the current favorable rate environment.

Past performance: demonstrating a consistent track record, JPMorgan has successfully beaten earnings estimates across the board, with notable achievements in GAAP earnings per share for the last eight consecutive quarters.

Share price prospects: the current share price of $239.87 holds potential for growth, trending towards a consensus target of $253.79, indicating investor confidence and the bank’s promising financial trajectory.

Goldman Sachs Q4 data

Goldman Sachs is set to release its latest earnings on January 14, 2025 at 7:30pm SGT.

• EPS: $8.21, a quarter-over-quarter increase of 2.40%
• Revenue: $12.37 billion for the quarter
• Net income: projected at $2.71 billion
• ROE: 9.98%.

Year-on-year growth: analysts anticipate a YoY growth of 2.97% in GAAP earnings, reflecting steady financial progress.

Market performance: driven by strong institutional client activity and improving fee income, Goldman Sachs has consistently delivered strong performances, beating estimates in five out of the last eight quarters.

Price target: the current consensus price target stands at $619.78, indicating potential growth from the existing share price of $560, which underscores investor confidence and the bank's promising financial trajectory.

Market implications for investors

Both banks have attracted strong analyst coverage, with JPMorgan receiving 17 buys, nine holds, and two sells. Share trading opportunities may emerge based on the results. Goldman Sachs shows similar bullish sentiment with 17 buys, nine holds, and one sell recommendation. The stock trading outlook remains positive for both institutions.

Market participants should monitor both banks' guidance on trading revenues and net interest income outlook for 2025.

Trading 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 show both banks have consistently beaten estimates, which could influence market expectations and trading activity around the announcements.

JPMorgan 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 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 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.

​JPMorgan daily chart

Goldman Sachs technical analysis

2024 was a much better year for Goldman Sachs compared to 2023. The stock price struggled to make much headway in 2023, 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.

Goldman Sachs daily chart