What to Expect From Bank of America $BAC Earnings

Bank of America $BAC,  America’s second-biggest bank by assets is scheduled to report third quarter earnings before the bell on Friday with Wells Fargo $WFC and PNC Financial $PNC. Analysts are expecting more of the same as market waits on GOP tax plan.

Bank of America $BAC,  America’s second-biggest bank by assets is scheduled to report third-quarter earnings before the bell on Friday. $BAC follows other money center major banks  Citigroup $C and JPMorgan $JPM who report Thursday morning. Analysts expect more of the same but with softer trading profits, loan growth will be informative. Wells Fargo (WFC) and PNC Financial $PNC also reports Friday morning.

Bank of America

Bank stocks jumped recently after the GOP’s tax-reform plan was announced. We expect more of the same with trading mellow, interest rates low and business cautious. The banking sector received a boost earlier in the year after the largest U.S. banks passed Fed stress tests and were allowed to raise dividends and share buybacks. The Fed as it raise rates is helping banks’ finances.

Bank of America Consensus Forecast

Expected EPS of 46 cents, up 12%, on revenue of $22.062 billion by analysts.

Since Donald Trump won on Election Day has been a huge run higher on BAC and the other bank stocks. Caution hangs over the sector if congress can pass regulatory rollbacks after the GOP’s unsuccessful attempt to replace the Affordable Care Act. Auto and student loans also overhang the banking and finance sectors. 

Daily Chart of Bank of America shows the influence of market expectations.

BAC 10 19 17

Previous Quarter Earnings
Bank of America $BAC Earnings Beat Estimates With Strong Trading Result
Bank of America $BAC Earnings Beats on Trading Income Rise

The bank rally had been fueled by expectations for easier regulations including a possible repeal of DoddFrank and infrastructure spending. The Federal Reserve decision to raise rates has also helped banks.  The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto.

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