What to Expect From Bank of America Earnings

Banking, finance, and taxes

Published: October 14, 2014 11:30 am

Bank of America Corp. (NYSE: BAC) is set to report its earnings Wednesday before the markets open. Other major banks reported earnings Tuesday morning, including J.P. Morgan, Citigroup and Wells Fargo.

Thomson Reuters has consensus estimates for Bank of America earnings of -$0.09 per share on $21.36 billion in revenue. In the third quarter of last year it reported earnings of $0.20 per share and $21.53 billion in revenue. Looking ahead to the current quarter, estimates calls for $0.34 in earnings per share and revenue of $21.67 billion.

Of the three other major banks that have reported, only Citigroup has had a positive response in the first two hours of trading, up over 2%. Wells Fargo and J.P. Morgan were both down over 1%. It is worth noting that Bank of America also trades at a discount to book value similar to Citigroup.

As of last quarter, Bank of America’s tangible book value per share had increased 7% year-over-year to $14.24. The bank’s stated book value per share was $21.16 at the end of June, compared to $20.75 in March.

Bank of America has seen its shares rise about 11% over the third quarter to close at $17.05 from the open of $15.32. Shares during this time had a trading range of $14.84 to $17.20. However in the days ahead of the report, shares have fallen almost 6% from the relative high of $17.41 in early October to Monday’s close of $16.40.

Bank of America shares were trading at $16.43 Tuesday. The stock has a consensus analyst price target of $18.09 and a 52-week range of $13.80 to $18.03. The company has a market cap of roughly $173 billion.

ALSO READ: Solid Citigroup Earnings, With Discount to Book Value

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