To The Moon

JPMorgan shares fell nearly 5% in morning trading.The bank posted its smallest quarterly earnings beat in nearly two years and the lender’s CFO lowered guidance on companywide returns.

CFO Jeremy Barnum told reporters on a conference call that management expected “headwinds” of higher expenses and moderating Wall Street revenue to cause the company’s returns to dip from recent years. That means it’s likely the bank will miss the firm’s 17% target for returns on capital, he said.

“Over the next one to two years, we expect to earn modestly below that target as the headwinds likely exceed the tailwinds,” Barnum said, adding that the goal is still valid over the “medium term.”