Bank of America Earnings: Here’s Why Shares are Down Now
Bank of America Corporation (NYSE:BAC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.93%.
Bank of America Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 566.67% to $0.2 in the quarter versus EPS of $0.03 in the year-earlier quarter.
Revenue: Decreased 11.97% to $23.71 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Bank of America Corporation reported adjusted EPS income of $0.2 per share. By that measure, the company missed the mean analyst estimate of $0.22. It beat the average revenue estimate of $23.49 billion.
Quoting Management: “Our strategy of connecting our customers to all we can do for them is working,” said Chief Executive Officer Brian Moynihan. “Solid increases in loan growth to small businesses and middle-market companies, four straight quarters of steady growth in mortgage originations, record earnings in wealth management, and another quarter near the top in investment banking fees show we are balanced, focused and moving forward.”
Key Stats (on next page)…
Revenue increased 6.28% from $22.31 billion in the previous quarter. EPS increased 566.67% from $0.03 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.25 and has not changed. For the current year, the average estimate has moved up from a profit of $0.97 to a profit of $0.98 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)