Bank of America Earnings Approach

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S&P 500 (NYSE:SPY) component Bank of America (NYSE:BAC) will unveil its latest earnings on Wednesday, October 17, 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 the company to break even after the company reported profit of 28 cents per share in the year-earlier quarter. During the past three months, the average estimate has moved down from 14 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 13 cents during the last month. For the year, analysts are projecting net income of 41 cents per share, a swing from net loss of 29 cents last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 19 cents per share against the mean estimate of 15 cents. In the prior quarter, the company reported net income of 31 cents.

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A Look Back: In the second quarter, the company swung to a profit of $2.46 billion (19 cents a share) from a loss of $8.83 billion (90 cents) a year earlier, beating analyst estimates. Revenue rose 38.4% to $26.42 billion from $19.08 billion.

Stock Price Performance: Between July 18, 2012 and October 11, 2012, the stock price rose $1.81 (24%), from $7.53 to $9.34. The stock price saw one of its best stretches over the last year between August 13, 2012 and August 22, 2012, when shares rose for eight straight days, increasing 6.5% (+50 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.

Wall St. Revenue Expectations: On average, analysts predict $21.95 billion in revenue this quarter, a decline of 22.8% from the year-ago quarter. Analysts are forecasting total revenue of $90.4 billion for the year, a decline of 3.3% from last year’s revenue of $93.45 billion.

Key Stats:

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 17.7% in the first quarter after increasing in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 15 of 25 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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