Financial services giant Bank of America (NYSE:BAC) will be reporting earnings this Wednesday before market hours. Here’s what you need to know.
Bank of America beat analysts’ revenue expectations by 5.8% last quarter, reporting revenues of $29.19 billion, up 10.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is Bank of America a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Bank of America’s revenue to grow 3.6% year on year to $27.59 billion, slowing from the 11.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bank of America has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.3% on average.
With Bank of America being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for banks stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Bank of America’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $62.11 (compared to the current share price of $55.22).
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