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S&P 500 (NYSE:SPY) component Bank of America (NYSE:BAC) will unveil its latest earnings tomorrow, Wednesday, July 18, 2012. Bank of America is a bank holding and a financial holding company which, through its subsidiaries, provides banking and other financial services and products to customers in the United States and abroad.
Bank of America Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 16 cents per share, a swing from net loss of 90 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 17 cents. Between one and three months ago, the average estimate moved up. It has dropped from 18 cents during the last month. For the year, analysts are projecting profit of 56 cents per share, a swing from a loss of 29 cents last year.
Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 31 cents per share against a mean estimate of profit of 13 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 8 cents.
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Wall St. Revenue Expectations: On average, analysts predict $22.9 billion in revenue this quarter, a rise of 73% from the year-ago quarter. Analysts are forecasting total revenue of $91.94 billion for the year, a decline of 1.6% from last year’s revenue of $93.45 billion.
A Look Back: In the first quarter, profit fell 68.1% to $653 million (3 cents a share) from $2.05 billion (17 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 17.7% to $26.93 billion from $32.71 billion.
Stock Price Performance: Between April 17, 2012 and July 16, 2012, the stock price fell $0.98 (-11.15%), from $8.79 to $7.81. The stock price saw one of its best stretches over the last year between January 17, 2012 and January 25, 2012, when shares rose for seven straight days, increasing 13.4% (+87 cents) over that span. It saw one of its worst periods between May 7, 2012 and May 17, 2012 when shares fell for nine straight days, dropping 12.3% (-98 cents) over that span.
On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 4.6% in the fourth quarter of the last fiscal year and 4% in the third quarter of the last fiscal year before falling in the first quarter.
Analyst Ratings: There are mostly holds on the stock with 15 of 24 analysts surveyed giving that rating.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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