Bank of America Earnings: Moving in the Right Direction?

Even though Bank of America Corporation (NYSE:BAC) delivered a profit in its latest quarterly report, the bank saw double-digit percentage declines year-over-year on both the top-line and both-line. On a positive note, the bank topped Wall Street profit and revenue estimates. The revenue beat is a positive sign to shareholders seeking brighter days ahead. Shares are down 0.42%.

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Bank of America Corporation Earnings Cheat Sheet

Results: Net income decreased -64.84% to $700 million (3 cents per diluted share) in the quarter versus a net gain of $1.99 billion in the year-earlier quarter.

Revenue: Decreased 23.86% to $22.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bank of America Corporation reported adjusted net income of 3 cents per share. By that measure, the company beat the mean analyst estimate of $0.02. It beat the average revenue estimate of $21.03 billion.

Quoting Management: “We addressed significant legacy issues in 2012 and our strengths are coming through,” said Chief Financial Officer Bruce Thompson…

“Capital and liquidity remain strong and credit continues to improve. Our primary focus this year is to grow revenue, manage expenses and drive core earnings growth.”

Key Stats:

Revenue decreased 7.65% from $24.47 billion in the previous quarter. Net income increased 105.88% from $340 million 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 $0.22 and has not changed. For the current year, the average estimate has moved down from a profit of $0.41 to a profit of $0.24 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)