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BofA (BAC) Beats on Q3 Earnings & Revenue Estimates
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Have you been eager to see how Bank of America Corporation (BAC - Free Report) performed in Q3 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 41 cents per share, which beat the Zacks Consensus Estimate of 34 cents. Also, the figure was up from 38 cents recorded in the prior-year quarter.
Improved revenues 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 bullish stance prior to the earnings release. The Zacks Consensus Estimate increased by a penny over the last 30 days.
Further, BofA has a decent earnings surprise history. Before posting the earnings beat in Q3, the company delivered positive surprises in three quarters of the prior four quarters.
Overall, the company has a positive earnings surprise of 3.5% in the trailing four quarters.
Higher-than-expected Revenues
BofA posted net revenues (FTE basis) of $21.9 billion, which was above the Zacks Consensus Estimate of $20.8 billion. Also, it compared favorably with the year-ago number of $21.2 billion.
Key Statistics
Investment banking fees were $1.5 billion, up 13%
Sales and trading revenue (excluding net DVA) up 18%
Provision for credit losses up 5% to $850 million
Non-interest expense fell 3% to $13.5 billion
Returned $2.2 billion to shareholders through repurchases and dividends
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (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 2% 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!
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BofA (BAC) Beats on Q3 Earnings & Revenue Estimates
Have you been eager to see how Bank of America Corporation (BAC - Free Report) performed in Q3 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 41 cents per share, which beat the Zacks Consensus Estimate of 34 cents. Also, the figure was up from 38 cents recorded in the prior-year quarter.
Improved revenues 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 bullish stance prior to the earnings release. The Zacks Consensus Estimate increased by a penny over the last 30 days.
Further, BofA has a decent earnings surprise history. Before posting the earnings beat in Q3, the company delivered positive surprises in three quarters of the prior four quarters.
BANK OF AMER CP Price and EPS Surprise
BANK OF AMER CP Price and EPS Surprise | BANK OF AMER CP Quote
Overall, the company has a positive earnings surprise of 3.5% in the trailing four quarters.
Higher-than-expected Revenues
BofA posted net revenues (FTE basis) of $21.9 billion, which was above the Zacks Consensus Estimate of $20.8 billion. Also, it compared favorably with the year-ago number of $21.2 billion.
Key Statistics
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (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 (Strong Buy) stocks here.)
How the Market Reacted So Far
Following the earnings release, BofA shares were up nearly 2% 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!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>