Earnings Reports

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Bank of America reported better than expected first quarter earnings but missed on revenue before the bell Tuesday. $BAC expenses fell 4% to $13.2 billion, $500 million below analysts’ estimate.JPMorgan Chase $JPM. Wells Fargo $WFC, PNC Financial $PNC and Citigroup $C all reported. 

Bank of America Mortgage

Bank of America Corporation NYSE: BAC Reported Earnings Before Open Tuesday

$.070 Beat $0.66 EPS Forecast AND $23.0B Million $23.3 Billion Forecast in Revenue

Earnings 

Bank of America Corp. (NYSE: BAC) released Q1 earnings before the market Tuesday with profit up 6% to $7.3 billion, or 70 cents a share, exceeding analysts’ estimate of 66 cents a share. Revenue was roughly unchanged from a year earlier at $23 billion,under $23.3 billion in revenue. The same period of last year reportedly had $0.62 in EPS and $23.27 billion in revenue.

Analysts on BAC

  • Barclays Hold rating.
  • HSBC  Hold rating with a $29 price target.
  • Jefferies Buy rating with a $33 price target.
  • Oppenheimer Outperform rating with $40 price target.
  • Wells Fargo Buy rating with a $36 pricr target.
  • UBS Group Buy rating with  $33 price target.

Analysts have cut estimates for Goldman, Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., Morgan Stanley, and Wells Fargo & Co. by an average of 8.1 percent before the last quarter’s earnings reports. Goldman's estimates were cut by 27 percent.

Bank of America Corporation NYSE: BAC

Market Reaction: Pre-market $29.61 −0.23 (0.77%)

Highlights

“Economic growth and consumer activity in the U.S. continue to be solid, businesses of every size are borrowing and driving the economy, and asset quality is strong,” Moynihan said in the release. “It was a challenging capital markets environment but our team and platform are optimized to serve clients and generate stable revenues across a range of market conditions over time.”

  • BA’s net interest yield, a key metric of profitability for a bank’s core lending activities, rose 9 basis points to 2.51%
  • Loans across the firm’s consumer and commercial businesses rose 3%
  • Deposits rose 5% to $1.4 trillion.
  • Consumer lending business  25% increase in profit to $3.2 billion.with revenue in the business 7% to $9.6 billion while reducing costs by almost $200 million.
  • Global markets profit slumped 26% to $1 billion.
  • Revenue dropped 13% on weak trading results and lower investment banking fees.
  • Equities trading revenue fell 22%,
  • Fixed income declined 8%.
  • Global banking business posted a 2% profit increase to $2 billion.
  • Wealth management profit rose 14% to $1 billion.

 

Bank of America Corporation Q4 Earnings Recap

$0.70 Beat $0.63 EPS Forecast AND $22.7 Beat $22.28 Billion Forecast in Revenue 

Earnings 

Bank of America Corp. (NYSE: BAC) released Q4 earnings before the market Wednesday with an EPS of 70 cents on revenue of $22.7 billion beating the 4Q adj. EPS est. expected at 63c (range 59c to 67c) 4Q on revenue net of interest expense est. $22.36b (range $22b to $22.90b). Estimates were for for 4Q total trading revenue of  $2.64b with equities $1.01b.  FICC seen at$1.64b and I-banking rev. est. $1.23b 4Q.  (Breakdown below)

Analysts expected net interest yield of 2.44% 4Q and the provision for credit losses of. $938.7m. BAC is seen benefiting more than most with it's gigantic asset base a with the Fed funds rate higher,

Analysts have cut estimates for Goldman, Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., Morgan Stanley, and Wells Fargo & Co. by an average of 8.1 percent since the last quarter’s earnings reports. Goldman's estimates were cut by 27 percent.

Bank of America Corporation NYSE: BAC

Market Reaction: Pre-market $28.10 +1.55 (+5.82%)

Highlights

  • Consumer banking revenue increased 10% to $9.88 billion, led by higher rates as well as deposit and loan growth.
  • Wealth and investment management revenue grew 7% to $4.99 billion.
  • Global banking revenue edged up 1% to $5.05 billion.
  • Fixed income trading revenue dropped 15% to $1.4 billion
  • Equities trading revenue rose 11% to $1.1 billion.

BAC Q4 2018 earnings

"Through the trillions of dollars of consumer transactions we process and from the steady confidence and activity of our small business and commercial clients, we see a healthy consumer and business climate driving a solid economy," Chairman and CEO Brian Moynihan said. "Each of our businesses faces opportunities to grow even more."

 Source: BAC, AlphaStreet

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