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BofA (BAC) Beats on Q3 Earnings and Revenue Estimates

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Have you been eager to see how Bank of America (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 66 cents per share, which surpassed the Zacks Consensus Estimate of 62 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 Q3, the company delivered positive surprises in all four trailing quarters. Overall, the company has a positive earnings surprise of 6.7% in the trailing four quarters.

Higher-than-expected Revenues

BofA posted net revenues of $22.8 billion, which was above the Zacks Consensus Estimate of $22.6 billion.

Key Q3 Statistics
 

  • Net income was up 32% from the year-ago quarter to $7.2 billion
  • Investment banking fees were $1.2 billion, down 20% year over year
  • Sales and trading revenue (excluding net DVA) decreased 3% from the year-ago quarter to $3.1 billion
  • Provision for credit losses declined 14% from the prior-year quarter to $716 million
  • Non-interest expense down 2% 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.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this BofA earnings report!

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