Is JPMorgan Poised to Beat the Whisper Number?

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JPMorgan Chase (JPM) is expected to report earnings on Tuesday, October 13th. The whisper number is $1.39, two cents ahead of the analysts’ estimate and showing some confidence from the WhisperNumber community. Whispers range from a low of $1.39 to a high of $1.40. JPMorgan has a 71% positive surprise history (having topped the whisper in 38 of the 54 earnings reports for which we have data).

Earnings history:

– Beat whisper: 38 qtrs
– Met whisper: 1 qtrs
– Missed whisper: 15 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we analyze what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

JPM1015A

The strongest price movement of -2.2% comes within thirty trading days when the company reports earnings that beat the whisper number, and +4.3% within ten trading days when the company reports earnings that miss the whisper number. The overall average post earnings price move is ‘opposite’ (beat the whisper number and see weakness, miss and see strength) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction:

JPM1015B

The company has reported earnings ahead of the whisper number in one of the past four quarters with a whisper number. In the comparable quarter last year the company reported earnings oen cent short of the whisper number. Following that report the stock realized a 2.4% gain in one trading day. Last quarter the company reported earnings four cents short of the whisper number. Following that report the stock realized a 1.9% gain in five trading days before turning and seeing a 5.1% loss in thirty trading days. Overall historical data indicates the company to be (on average) an ‘opposite’ price reactor when the company reports earnings.

WhisperNumber provides detailed earnings analysis and earnings trade alerts. Learn more here.

[Image Courtesy of The New York Times]

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

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