We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BofA (BAC) Beats on Q4 Earnings Excluding the Tax Impact
Read MoreHide Full Article
Have you been eager to see how Bank of America Corporation (BAC - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Charlotte-based one of the world's largest financial institutions’ earnings release this morning:
An Earnings Beat
BofA came out with adjusted earnings of 47 cents per share, which surpassed the Zacks Consensus Estimate of 44 cents. Results exclude a one-time charge of 27 cents related to the Tax Act.
Increase in revenues was the key reason for the earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for BofA depicted a bearish stance prior to the earnings release. The Zacks Consensus Estimate has declined 4.3% over the last 30 days.
Nonetheless, BofA has an impressive earnings surprise history. Before posting the earnings beat in Q4, the company delivered positive surprises in all four trailing quarters.
Bank of America Corporation Price and EPS Surprise
Overall, the company has a positive earnings surprise of 8.4% in the trailing four quarters.
Higher-than-expected Revenues
BofA posted adjusted net revenues of $21.4 billion, which was marginally above the Zacks Consensus Estimate of $21.3 billion. This excluded $0.9 billion of one-time charge related to the tax act.
Key Q4 Statistics
Including the one-time charge of $2.9 billion related to tax act, net income was $2.4 billion
Investment banking fees were $1.4 billion, up 16%
Sales and trading revenue (excluding net DVA) down 9%
Provision for credit losses jumped 29% to $1 billion
Non-interest expense down 1% to $13.3 billion
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #1 (Strong Buy) for BofA. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Following the earnings release, BofA shares were up nearly 1% in the pre-trading session. This is in line with what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this BofA earnings report!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
BofA (BAC) Beats on Q4 Earnings Excluding the Tax Impact
Have you been eager to see how Bank of America Corporation (BAC - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Charlotte-based one of the world's largest financial institutions’ earnings release this morning:
An Earnings Beat
BofA came out with adjusted earnings of 47 cents per share, which surpassed the Zacks Consensus Estimate of 44 cents. Results exclude a one-time charge of 27 cents related to the Tax Act.
Increase in revenues was the key reason for the earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for BofA depicted a bearish stance prior to the earnings release. The Zacks Consensus Estimate has declined 4.3% over the last 30 days.
Nonetheless, BofA has an impressive earnings surprise history. Before posting the earnings beat in Q4, the company delivered positive surprises in all four trailing quarters.
Bank of America Corporation Price and EPS Surprise
Bank of America Corporation Price and EPS Surprise | Bank of America Corporation Quote
Overall, the company has a positive earnings surprise of 8.4% in the trailing four quarters.
Higher-than-expected Revenues
BofA posted adjusted net revenues of $21.4 billion, which was marginally above the Zacks Consensus Estimate of $21.3 billion. This excluded $0.9 billion of one-time charge related to the tax act.
Key Q4 Statistics
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #1 (Strong Buy) for BofA. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank stocks here.)
How the Market Reacted So Far
Following the earnings release, BofA shares were up nearly 1% in the pre-trading session. This is in line with what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this BofA earnings report!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>