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BofA (BAC) Beats Earnings Estimates in Q4, Revenues Rise Y/Y
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Have you been eager to see how Bank of America (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 earnings of 70 cents per share, which surpassed the Zacks Consensus Estimate of 63 cents.
Revenues and lower expenses were 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 moved 1.6% lower 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 7.2% in the trailing four quarters.
Revenues Improve Y/Y
BofA posted net revenues of $22.7 billion, which was up 11% from the prior-year quarter. Excluding the impact of the tax act, revenues were $21.4 billion. The Zacks Consensus Estimate of $22.2 billion.
Key Q4 Statistics
Net income was up 39% (on adjusted basis) from the year-ago quarter to $7.3 billion
Investment banking fees were $1.3 billion, down 5% year over year
Sales and trading revenue (excluding net DVA) decreased 6% from the year-ago quarter to $2.5 billion
Provision for credit losses declined 10% from the prior-year quarter to $905 million
Non-interest expense down 1% year over year to $13.1 billion
What Zacks Rank Says
At present, BofA carries a Zacks Rank #3 (Hold). 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 more than 4.5% 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.
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BofA (BAC) Beats Earnings Estimates in Q4, Revenues Rise Y/Y
Have you been eager to see how Bank of America (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 earnings of 70 cents per share, which surpassed the Zacks Consensus Estimate of 63 cents.
Revenues and lower expenses were 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 moved 1.6% lower 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 7.2% in the trailing four quarters.
Revenues Improve Y/Y
BofA posted net revenues of $22.7 billion, which was up 11% from the prior-year quarter. Excluding the impact of the tax act, revenues were $21.4 billion. The Zacks Consensus Estimate of $22.2 billion.
Key Q4 Statistics
What Zacks Rank Says
At present, BofA carries a Zacks Rank #3 (Hold). 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 (Strong Buy) stocks here.)
How the Market Reacted So Far
Following the earnings release, BofA shares were up more than 4.5% 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 >>