Good News: JPMorgan Chase Recently Boosted Its Revenue Guidance for 2022 and 2023
Many investors might have been pessimistic coming into this latest batch of bank earnings reports, but the first few were by and large pretty positive. JPMorgan Chase (NYSE: JPM), the largest bank in the U.S. by assets, reported earnings results for the third quarter that beat analyst estimates. The bank also reported a clean bill of health when it comes to credit quality, although things could still deteriorate in the future.
While activity in some business segments like investment banking remains depressed, other business lines are robust, which recently enabled JPMorgan to raise its revenue projections for the full year of 2022 and for 2023 as well.
Companies provide revenue guidance to help investors and analysts model that company's projected earnings. Investors and analysts then use earnings and growth forecasts to arrive at a valuation for a company, which plays a big part in determining the actual stock price and future stock price. So, when revenue is revised higher it can often translate into better earnings, a higher valuation, and therefore a higher stock price.
Source Fool.com
