All eyes will be on J.P. Morgan Chase & Co. (NYSE:JPM) on Thursday, when the bank announces second-quarter earning and analysts look for clues to how consumers are weathering the recession. The average analyst estimate for the bank is adjusted earnings of 4 cents per share, which would be a decline of 92.6% from the year-ago period. Nevertheless revenues are expected to soar about 40% to $25.9 billion. In the second-quarter 2008, J.P. Morgan earned 54 cents a share on revenue of $19.7 billion.
Analysts lowered their estimates for the bank on expectations it will take big charges (roughly 27 cents per share) related to it repaying $25 billion in
TARP money last month. However, the bank's top-line growth is getting a big boost from its
acquisitions last year of Bear Stearns Cos. and bankrupt thrift Washington Mutual Inc.
Like rival Goldman Sachs Group Inc. (NYSE:GS), J.P. Morgan is expected to have made a killing in the bond markets last quarter, especially with Bear Stearns giving its market share a big boost. Likewise, the bank's retail operations are expected to have continued thriving from the integration and deposit base of Washington Mutual. -
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