Bank of America Set to Release Q4 Earnings amid Positive Growth Expectations
With a market capitalization of $336.9 billion, Bank of America Corporation (BAC) stands as one of the largest financial institutions in the United States. It serves a wide array of clients, including individuals, businesses, and governments across the globe. The bank’s operations include Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets, offering a broad range of financial products and services. Investors are looking ahead to the release of its fiscal Q4 earnings results scheduled for Friday, Jan. 10.
Positive Q4 Profit Expectations
Analysts are predicting that BAC, the nation’s second-largest bank, will report a profit of $0.79 per share for Q4, marking a 12.9% increase from $0.70 per share in the same quarter last year. Notably, the company has outperformed Wall Street’s earnings estimates for four consecutive quarters, beating the consensus EPS estimate by 3.9% in the most recent quarter.
Fiscal 2024 and Beyond: Recovery on the Horizon
For fiscal 2024, analysts forecast BAC to report an EPS of $3.27, a drop of 4.4% from $3.42 in fiscal 2023. However, they predict a 12.2% rebound in EPS, reaching $3.67 in fiscal 2025.
Strong Performance Over the Past Year
Bank of America shares have appreciated by 30.1% in the last 52 weeks, outperforming both the S&P 500 Index’s ($SPX) 23.2% return and the Financial Select Sector SPDR Fund’s (XLF) 28.2% gain.
Recent Earnings and Analyst Ratings
On October 15, BAC shares experienced a slight recovery, bolstered by its better-than-expected Q3 2024 earnings of $0.81 per share. This exceeded the consensus estimate, driven by strong results in capital markets, particularly a 24.5% increase in underwriting income and an 11.7% rise in sales and trading revenues. Moreover, total deposit balances grew by 2.4% year-over-year to $1.9 trillion, indicating ongoing strength in core banking operations. While the bank faced pressure from higher deposit costs lowering net interest income, the positive trends in investment banking and trading revenues helped lift investor confidence.
Overall, analysts maintain a cautiously optimistic view of Bank of America stock, labeling it with a “Moderate Buy” rating. Among 22 analysts monitoring BAC, 13 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and six opt for a “Hold” rating. This reflects a slightly less bullish stance compared to a month ago, when the stock had 14 “Strong Buy” ratings.
As of now, BAC is trading below the average analyst price target of $48.65.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here. More news from Barchart
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