S&P 500 (NYSE:SPY) component Bank of America Corporation (NYSE:BAC) reported a lower net income in first quarter, but top analysts’ estimates. Bank of America is a bank holding and a financial holding company which, through its subsidiaries, provides banking and other financial services and products to customers in the United States and abroad.
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Bank of America Earnings Cheat Sheet for the First Quarter
Results: Net income for the banks-major regional fell to $653 million (3 cents per share) vs. $2.05 billion (17 cents per share) a year earlier. This is a decline of 68.1% from the year-earlier quarter.
Actual vs. Wall St. Expectations: Bank of America Corporation reported adjusted net income of 31 cents a share. By this measure, it beat the mean analyst estimate of 13 cents per share. It beat the average revenue estimate of $22.51 billion.
Quoting Management: “By focusing on building strong customer and client relationships, we’re doing more business and winning in the marketplace,” said Chief Executive Officer Brian Moynihan. “Our strategy is paying off: With the economy steadily improving and because of the work we have done to strengthen and simplify our company, we saw improved profitability in all of our businesses this quarter compared to the fourth quarter of last year.”
Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 23 cents per share to 17 cents, indicating that analysts are growing pessimistic about the company’s performance next quarter. The average estimate for the fiscal year is 70 cents per share, down from 93 cents ninety days ago.
Competitors to Watch: Citigroup Inc., Wells Fargo & Company, JPMorgan Chase & Co., U.S. Bancorp, Goldman Sachs Group, Inc., Barclays PLC, Morgan Stanley, PNC Financial Services, KeyCorp, and American Express Company.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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