CMB, JPM issue Q4 warning
--6:43 am - By Tomi Kilgore
Both Chase Manhattan (CMB: news, msgs) and J.P. Morgan (JPM: news, msgs), which Chase is acquiring, said earnings for the fourth quarter are expected to be "substantially lower" than current estimates and sequential third quarter earnings, citing a "difficult capital markets environment" and higher expenses. The average analyst estimate compiled by First Call has pegged EPS at 78 cents for Chase and $2.62 for J.P. Morgan. In the third quarter, the banks had respective EPS of 68 cents and $2.77. Separately, the companies said shareholders will vote on the merger Dec. 22, and a year-end closing is anticipated. "As proven by the overwhelmingly positive client response, we feel stronger than ever about the value that will be produced by the merger," said William Harrison, Jr., Chase's chairman and chief executive. On Monday, CMB closed up $1.50 at $44.50 and JPM ended up $5.81 at $164.25. |
