Earnings Season Starts

Today is the unofficial start of Q1 earnings season. Usually the big banks go first. JPMorgan (JPM) said it made $2.76 per share which was seven cents more than estimates.

JPMorgan said it took a $902 million charge for building credit reserves for anticipated loan losses, compared with a $5.2 billion release a year earlier. The bank also booked $524 million in losses driven by markdowns and widening spreads after Russian’s invasion of its neighbor.

Combined, the two factors sapped 36 cents from the quarter’s earnings, the bank said.

Dimon said he built up credit reserves because of “higher probabilities of downside risk” in the U.S. economy, specifically from the impact of high inflation and the Ukraine conflict.

BlackRock (BLK) earned $9.52 per share versus the consensus of $8.84 per share. We won’t have our first Buy List earnings report until next week.

Also this morning, the PPI report said that producer prices rose 11.2% in the last year. That’s the largest gain on record although the data only goes back to 2010. For the month, producer prices rose by 1.4%. Wall Street had been expecting an increase of 1.1%.

Posted by on April 13th, 2022 at 11:11 am


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