Bank of America Corp Earnings: Swing to a Profit but Still Misses Estimates

S&P 500 (NYSE:SPY) component Bank of America Corporation (NYSE:BAC) reported its results for the fourth quarter. 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.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Bank of America Earnings Cheat Sheet for the Fourth Quarter.

Results: Reported a profit of $1.99 billion (15 cents per diluted share) in the quarter. The bank had a net loss of $1.24 billion or a loss of 16 cents per share in the year earlier quarter.

Revenue: Revenue was $25.1 billion last quarter.

Actual vs. Wall St. Expectations: BAC fell short of the mean analyst estimate of 23 cents per share. It fell short of the average revenue estimate of $24.08 billion.

Quoting Management: “We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company,” said Chief Executive Officer Brian Moynihan. “We built our capital ratios to record levels during 2011 on the strength of our core businesses and by shedding those that are not core to serving customers and clients. I am proud of our team and their ability to serve our customers well while transforming the company.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 8 cents, and in the second quarter, it was ahead by one cent.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the first quarter of the next fiscal year is 18 cents per share, dropping from 19 cents a month ago. At a profit of 6 cents per share, the average estimate for the fiscal year has risen from an expected loss of 4 cents ninety days ago.

Competitors to Watch: Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), U.S. Bancorp (NYSE:USB), Goldman Sachs Group, Inc. (NYSE:GS), Barclays PLC (NYSE:BCS), Morgan Stanley (NYSE:MS), PNC Financial Services (NYSE:PNC), KeyCorp (NYSE:KEY), and American Express Company (NYSE:AXP).

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com