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BofA (BAC) Beats on Q1 Earnings and Revenue Estimates

Zacks

Have you been eager to see how Bank of America BAC performed in Q1 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 62 cents per share, which surpassed the Zacks Consensus Estimate of 59 cents.

Increase in revenues was 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 neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 30 days.

Nonetheless, BofA has an impressive earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in all four trailing quarters.

Bank of America Corporation Price and EPS Surprise

Bank of America Corporation Price and EPS Surprise | Bank of America Corporation Quote


Overall, the company has a positive earnings surprise of 8.8% in the trailing four quarters.

Higher-than-expected Revenues

BofA posted net revenues of $23.1 billion, which was above the Zacks Consensus Estimate of $22.9 billion.

Key Q1 Statistics

  • Investment banking fees were $1.4 billion, down 15%
  • Sales and trading revenue (excluding net DVA) inched up 1%
  • Provision for credit losses were relatively stable at $834 million
  • Non-interest expense down 1% to $13.9 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.)

How the Market Reacted So Far

Following the earnings release, BofA shares were up nearly 1% in the pre-trading session. This is in contrast to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.

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

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To read this article on Zacks.com click here.

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