EPS beat >15%
→ +2.0% average return (1M), 67% chance of gain
→ +6.8% average return (3M), 63% chance of gain
EPS miss >5%
→ –3.2% average return (1M), 58% chance of decline
Opinion
JPMorgan earnings surprises historically result in a slow but steady positive trajectory over the medium term, while negative surprises tend to trigger sharp, short-term downside moves. The reaction pattern emphasizes sentiment momentum more than intraday volatility.
Core Sell Point
A strong beat may support a gradual rally over the following 3 months, while a significant miss could lead to further downside in the near term, outweighing short-lived rebound attempts.
While the short-term upside is moderate, sustained strength over a 3-month horizon is typical when earnings are clearly strong.
When JPMorgan posts a negative earnings surprise
(EPS misses by more than 5%)
Average return after 1 month: –3.2%
Probability of decline after 1 month: 58%
Earnings misses tend to trigger an immediate downside reaction, with increased risk of continued weakness rather than swift recovery.
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