Earnings This Week: JPMorgan, Lululemon and More

JPMorgan posts record annual profits as major U.S. banks thrive in the final quarter of 2024

JPMorgan reported a strong finish to 2024, with fourth-quarter net income rising about 50% to more than $14 billion and quarterly results that comfortably beat analysts’ estimates. The bank’s earnings per share climbed to $4.81 from $3.04 a year earlier, exceeding the FactSet consensus of $4.09. Total managed revenue reached $43.7 billion, a 10% increase from $39.9 billion a year ago and above the expected $41.9 billion.

On a full-year basis, JPMorgan recorded a company-high $54 billion in profit, or $18.22 per share on an adjusted basis. Shares ticked up slightly in early trading after the release.

JPMorgan benefited from improved fee income and market activity: investment banking fees rose roughly 49% while markets revenue grew about 21%. Consumer banking also showed strength, with clients opening nearly 2 million checking accounts. Net interest income fell modestly—down 3% to $23.5 billion—reflecting moves in interest rates. The bank set aside $2.6 billion for loan losses, a slight decrease from a year earlier.

CEO Jamie Dimon described the U.S. economy as resilient, pointed to low unemployment and steady consumer spending, and said businesses were more optimistic about policy that could promote growth. Dimon stressed that any regulatory changes should support growth while maintaining the safety of the financial system and called for rules that are transparent and data-driven.

Dimon also flagged geopolitical tensions as a major risk, saying the global environment remains unusually complex and that the bank is preparing for a range of outcomes.

JPMorgan’s results arrived alongside strong reports from peers. Citigroup, Wells Fargo and Goldman Sachs all posted robust earnings, reflecting a favorable environment for large banks since the Federal Reserve raised rates in 2022–23 to curb inflation. Despite the Fed’s three rate cuts between September and December, bank stocks outperformed broader markets in 2024: Goldman Sachs closed the year up about 48%, JPMorgan up 41% and Wells Fargo up 43%.

Markets reacted positively to both the profit reports and inflation data released the same day. The consumer price index rose to 2.9% in December—the highest since July—while core inflation slowed to 3.2%, a trend closely watched by policymakers.

Leadership changes were also announced: Daniel Pinto will step down as president and chief operating officer at the end of June and retire in late 2026. Jennifer Piepszak, currently co-CEO of the commercial and investment bank division, will succeed him as COO with Pinto’s guidance. Bank spokespeople said Piepszak is not currently pursuing the CEO role when Dimon eventually departs, leaving open succession possibilities within the executive team.

Wells Fargo reported a nearly 50% increase in fourth-quarter net income to $5.1 billion, or $1.43 per share, while revenue was roughly flat at $20.4 billion. The bank continues to work with regulators to strengthen its anti-financial-crime controls after previous regulatory actions. Citigroup and Goldman Sachs both topped profit forecasts; Goldman noted strong performance in equities and investment banking and said it led global M&A activity in 2024.

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Lululemon raises fourth-quarter revenue and earnings per share forecast

Lululemon Athletica raised its guidance for the fourth quarter after a strong holiday shopping period. The company now expects net revenue of US$3.56 billion to US$3.58 billion, up from its prior outlook of US$3.48 billion to US$3.51 billion. That represents growth of roughly 11% to 12% year over year, or 6% to 7% excluding an extra 53rd week in 2024.

The apparel retailer also boosted its diluted earnings-per-share outlook to US$5.81–US$5.85, compared with previous guidance of US$5.56–US$5.64. CFO Meghan Frank attributed the improvement to strong holiday demand and positive customer response to the company’s product assortment and in-store and online experiences.

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Cogeco earns $29.8 million in first quarter as it begins three-year transformation

Cogeco Inc. reported first-quarter profit attributable to shareholders of $29.8 million, a 13.7% decline from $34.5 million a year earlier, as the company begins a three-year transformation program for its 2025 fiscal year. Consolidated revenues slipped to $765 million from $776.2 million in the prior-year quarter.

At the subsidiary level, Cogeco Communications posted profit attributable to shareholders of $100.6 million, up 12.4% from $89.5 million a year earlier. Revenues at the subsidiary were $738.7 million, down from $747.7 million.

President and CEO Frederic Perron said high-speed internet subscriber growth remained healthy and that U.S. subscriber metrics were improving. The company is also preparing for a planned Canadian wireless launch. Cogeco declared a quarterly dividend of $0.922 per share for both the parent and subsidiary, unchanged from the prior quarter but about 8% higher than a year ago.

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UnitedHealth tops profit forecasts but medical costs linger for health care giant

UnitedHealth reported fourth-quarter results that beat profit expectations but revealed continued pressure from rising medical costs and care utilization. Adjusted earnings came in at $6.81 per share for the quarter, and revenue rose about 7% to $100.8 billion—slightly below the consensus of $101.6 billion.

Company executives noted that approximately 87% of premiums collected in the quarter were paid out for medical care, a ratio higher than analysts anticipated. UnitedHealth is contending with a number of cost pressures, including increased use of expensive specialty drugs and downward rate adjustments in its Medicare business. Enrollment in state and federally funded Medicaid programs declined by roughly 400,000 people, and the company said state rate updates to cover remaining costs have been lagging.

Full-year profit for 2024 fell about 36% to $14.4 billion after years of growth. UnitedHealth’s results were also affected by costs tied to a major cyberattack at its Change Healthcare unit earlier in the year, which added more than $2 billion in response expenses.

The company’s first earnings call since the Dec. 4 fatal shooting of Brian Thompson, CEO of UnitedHealthcare, opened with tributes. Executives acknowledged the impact of his loss and the broader public reaction to health care access and insurance practices. The tragic event spurred public debate and a wave of criticism of the industry.

UnitedHealth shares were lower after the report, trading below recent highs as concerns over medical cost trends weighed on investors. Other large health care companies also saw share declines.

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