JPMorgan Chase Dimon: Should expect volatile markets as Fed cuts balance sheet

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Jamie Dimon, CEO of JPMorgan Chase, in the company earnings

Earnings

The profits of a business represent its net profits or benefits resulting from its operation. Profits are the net benefits of operating a company. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation and amortization. Better performance can lead to stronger stock prices, while bad unexpected earnings can lead to lower stock prices. Using Earnings to Better Inform Investment Decisions Many analysts also use other measures such as earnings per share (EPS) to compare the earnings of multiple companies. EPS is calculated by the remaining earnings for shareholders, divided by the number of shares outstanding. This is a more accurate measure for investors and analysts since each company has a different number of publicly held shares. Merely comparing the existing earnings of companies does not accurately indicate how much money each company has for each of its shares over a specific period. Therefore, EPS is regularly used to make better informed comparisons and forecasts. In the United States, all companies are required to report their quarterly results to the public, which provides information on the state of any publicly traded company. These events are highly watched and important, especially for large companies. In addition, several companies are used as barometers of the state of the overall market or the US economy, which gives these measures even more weight. Ultimately, profits are an integral part of the American economy. stock market and ensure that companies disclose their financial statements in a way that does not leave investors or the public in the dark.

The profits of a business represent its net profits or benefits resulting from its operation. Profits are the net benefits of operating a company. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation and amortization. Better performance can lead to stronger stock prices, while bad unexpected earnings can lead to lower stock prices. Using Earnings to Better Inform Investment Decisions Many analysts also use other measures such as earnings per share (EPS) to compare the earnings of multiple companies. EPS is calculated by the remaining earnings for shareholders, divided by the number of shares outstanding. This is a more accurate measure for investors and analysts since each company has a different number of publicly held shares. Merely comparing the existing earnings of companies does not accurately indicate how much money each company has for each of its shares over a specific period. Therefore, EPS is regularly used to make better informed comparisons and forecasts. In the United States, all companies are required to report their quarterly results to the public, which provides information on the state of any publicly traded company. These events are highly watched and important, especially for large companies. In addition, several companies are used as barometers of the state of the overall market or the US economy, which gives these measures even more weight. Ultimately, profits are an integral part of the American economy. stock market and ensure that companies disclose their financial statements in a way that does not leave investors or the public in the dark.
Read this term call says:

  • You should expect volatile markets as the Fed shrinks the balance sheet
  • The redemption rate will be lower than in 2021
  • He doesn’t expect the US to experience a recession this year
  • The war in Ukraine will have unpredictable results, a huge cloud on the horizon
  • Will not use liquidity now to buy longer-term securities to increase interest income, given the risks of regulatory capital damage

Dimon was cautious on the economy in the comments ahead of the results. Quarterly earnings showed earnings per share below expectations of $2.63 from $2.70, but revenue above expectations. His comment on the reluctance to buy long-term securities seems to suggest that rate expectations could be higher, as well as regulatory concerns given the slowing economy.

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