Bank of America Earnings Cheat Sheet: Swing to a Profit, Beating Estimates

S&P 500 (NYSE:SPY) component Bank of America Corporation (NYSE:BAC) climbed to a profit in the third quarter and beat Wall Street’s expectations in the process. 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 Third Quarter

Results: Reported a profit of $6.2 billion (56 cents per diluted share) in the quarter. The bank had a net loss of $7.3 billion or a loss of 77 cents per share in the year earlier quarter.

Revenue: Noninterest income was $17.96 billion last quarter.

Actual vs. Wall St. Expectations: BAC beat the mean analyst estimate of 20 cents per share.

Quoting Management: “This quarter’s results reflect several actions we took that highlight our ongoing transformation toward becoming a leaner, more focused company,” said Chief Executive Officer Brian Moynihan. “The diversity and depth in our customer and client offerings provided some resiliency in a very challenging environment.”

Key Stats:

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with a loss of -90 cents versus a mean estimate of a loss of 91 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 27 cents per share to 19 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Down from a loss of 16 cents per share ninety days ago, the average estimate for the fiscal year is now a loss of 34 cents.

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).

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(Source: Xignite Financials)