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Bank of America (BAC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended September 2023, Bank of America (BAC - Free Report) reported revenue of $25.17 billion, up 2.7% over the same period last year. EPS came in at $0.90, compared to $0.81 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $25.08 billion, representing a surprise of +0.33%. The company delivered an EPS surprise of +11.11%, with the consensus EPS estimate being $0.81.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Bank of America performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio (FTE basis): 62.6% compared to the 63.2% average estimate based on seven analysts.
Net interest income/yield on earning assets - Yield/rate: 2.1% compared to the 2.1% average estimate based on seven analysts.
Total earning assets - Average balance: $2,738.70 billion versus the seven-analyst average estimate of $2,759.18 billion.
Net charge-off / Average Loans: 0.4% compared to the 0.4% average estimate based on six analysts.
Total nonperforming loans, leases and foreclosed properties: $4.99 billion versus the five-analyst average estimate of $4.63 billion.
Tier 1 Capital Ratio: 13.6% versus 13.3% estimated by four analysts on average.
Total Non-Performing Loans: $4.83 billion compared to the $4.58 billion average estimate based on four analysts.
Tier 1 Leverage Ratio: 7.3% compared to the 7.1% average estimate based on three analysts.
Net Interest Income- Fully taxable-equivalent basis: $14.53 billion versus the seven-analyst average estimate of $14.25 billion.
Total Noninterest Income: $10.79 billion versus $10.81 billion estimated by seven analysts on average.
Card income: $1.52 billion versus $1.57 billion estimated by six analysts on average.
Total fees and commissions: $8.14 billion versus the six-analyst average estimate of $8.01 billion.
Shares of Bank of America have returned -6.2% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Bank of America (BAC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2023, Bank of America (BAC - Free Report) reported revenue of $25.17 billion, up 2.7% over the same period last year. EPS came in at $0.90, compared to $0.81 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $25.08 billion, representing a surprise of +0.33%. The company delivered an EPS surprise of +11.11%, with the consensus EPS estimate being $0.81.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Bank of America performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency Ratio (FTE basis): 62.6% compared to the 63.2% average estimate based on seven analysts.
- Net interest income/yield on earning assets - Yield/rate: 2.1% compared to the 2.1% average estimate based on seven analysts.
- Total earning assets - Average balance: $2,738.70 billion versus the seven-analyst average estimate of $2,759.18 billion.
- Net charge-off / Average Loans: 0.4% compared to the 0.4% average estimate based on six analysts.
- Total nonperforming loans, leases and foreclosed properties: $4.99 billion versus the five-analyst average estimate of $4.63 billion.
- Tier 1 Capital Ratio: 13.6% versus 13.3% estimated by four analysts on average.
- Total Non-Performing Loans: $4.83 billion compared to the $4.58 billion average estimate based on four analysts.
- Tier 1 Leverage Ratio: 7.3% compared to the 7.1% average estimate based on three analysts.
- Net Interest Income- Fully taxable-equivalent basis: $14.53 billion versus the seven-analyst average estimate of $14.25 billion.
- Total Noninterest Income: $10.79 billion versus $10.81 billion estimated by seven analysts on average.
- Card income: $1.52 billion versus $1.57 billion estimated by six analysts on average.
- Total fees and commissions: $8.14 billion versus the six-analyst average estimate of $8.01 billion.
View all Key Company Metrics for Bank of America here>>>Shares of Bank of America have returned -6.2% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.