Back to top

Image: Bigstock

Seeking Clues to Bank of America (BAC) Q3 Earnings? A Peek Into Wall Street Projections for Key Metrics

Read MoreHide Full Article

Wall Street analysts expect Bank of America (BAC - Free Report) to post quarterly earnings of $0.94 per share in its upcoming report, which indicates a year-over-year increase of 16.1%. Revenues are expected to be $27.12 billion, up 7% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Bearing this in mind, let's now explore the average estimates of specific Bank of America metrics that are commonly monitored and projected by Wall Street analysts.

It is projected by analysts that the 'Efficiency Ratio (FTE basis)' will reach 63.1%. Compared to the present estimate, the company reported 64.6% in the same quarter last year.

According to the collective judgment of analysts, 'Book value per share of common stock' should come in at $37.63 . The estimate compares to the year-ago value of $35.37 .

The average prediction of analysts places 'Total earning assets - Average balance' at $3068.81 billion. The estimate compares to the year-ago value of $2917.70 billion.

The consensus estimate for 'Total nonperforming loans, leases and foreclosed properties' stands at $6.66 billion. The estimate compares to the year-ago value of $5.82 billion.

The combined assessment of analysts suggests that 'Tier 1 Leverage Ratio' will likely reach 6.7%. Compared to the current estimate, the company reported 6.9% in the same quarter of the previous year.

Analysts' assessment points toward 'Total Non-Performing Loans' reaching $6.66 billion. The estimate compares to the year-ago value of $5.63 billion.

The collective assessment of analysts points to an estimated 'Tier 1 Capital Ratio' of 12.7%. Compared to the present estimate, the company reported 13.2% in the same quarter last year.

Based on the collective assessment of analysts, 'Total Noninterest Income' should arrive at $12.19 billion. Compared to the present estimate, the company reported $11.38 billion in the same quarter last year.

Analysts expect 'Net Interest Income- Fully taxable-equivalent basis' to come in at $15.23 billion. The estimate compares to the year-ago value of $14.11 billion.

Analysts forecast 'Investment and brokerage services' to reach $4.89 billion. Compared to the present estimate, the company reported $4.55 billion in the same quarter last year.

Analysts predict that the 'Investment banking fees' will reach $1.62 billion. Compared to the present estimate, the company reported $1.40 billion in the same quarter last year.

The consensus among analysts is that 'Total fees and commissions' will reach $9.80 billion. Compared to the current estimate, the company reported $9.12 billion in the same quarter of the previous year.

View all Key Company Metrics for Bank of America here>>>

Shares of Bank of America have demonstrated returns of -1.9% over the past month compared to the Zacks S&P 500 composite's +3.5% change. With a Zacks Rank #3 (Hold), BAC is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bank of America Corporation (BAC) - free report >>

Published in