The bank's stock, which was above $40 when news broke of the $2 billion-and-counting loss on a credit derivatives hedge, finished Thursday at $34.04, and there's some sentiment out there that full disclosure will be a liberating experience for the shares.
"JPM has promised to reveal the extent and size of the large recent trading losses, and provide an updated timetable for the unwinding of these trades," wrote S&P Capital IQ ahead of the numbers. "We think this will provide closure and stability, and will reduce risk. We also expect the trading loss will be partly offset by other securities gains and mortgage banking revenues in Q2."
The average estimate of analysts polled by Thomson Reuters is for a profit of 72 cents a share from JPMorgan on revenue of $21.9 billion in the June-ended period.
S&P Capital IQ is maintaining its buy rating and $40 price target on the stock, and it's expecting earnings to come in at 77 cents a share, topping the consensus view by a nickel. The firm doesn't believe the bank is quite ready to tip its hat about when it could begin buying back its stock again."
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