Bank of America (BAC) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures
Wall Street analysts forecast that Bank of America (BAC) will report quarterly earnings of $0.78 per share in its upcoming release, pointing to a year-over-year decline of 13.3%. It is anticipated that revenues will amount to $25.29 billion, exhibiting an increase of 0.5% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 3.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Bank of America metrics that are commonly tracked and projected by analysts on Wall Street.
The collective assessment of analysts points to an estimated 'Efficiency Ratio (FTE basis)' of 61.9%. Compared to the present estimate, the company reported 62.6% in the same quarter last year.
Based on the collective assessment of analysts, 'Total earning assets - Average balance' should arrive at $2,882.90 billion. The estimate compares to the year-ago value of $2,738.70 billion.
Analysts predict that the 'Total nonperforming loans, leases and foreclosed properties' will reach $6.14 billion. Compared to the current estimate, the company reported $4.99 billion in the same quarter of the previous year.
The consensus estimate for 'Total Non-Performing Loans' stands at $6.03 billion. The estimate is in contrast to the year-ago figure of $4.83 billion.
The average prediction of analysts places 'Tier 1 Capital Ratio' at 13.6%. The estimate is in contrast to the year-ago figure of 13.6%.
Analysts expect 'Tier 1 Leverage Ratio' to come in at 7.0%. The estimate compares to the year-ago value of 7.3%.
The combined assessment of analysts suggests that 'Total Noninterest Income' will likely reach $11.31 billion. Compared to the present estimate, the company reported $10.79 billion in the same quarter last year.
Analysts' assessment points toward 'Net Interest Income- Fully taxable-equivalent basis' reaching $14.08 billion. Compared to the current estimate, the company reported $14.53 billion in the same quarter of the previous year.
Analysts forecast 'Investment and brokerage services' to reach $4.33 billion. Compared to the present estimate, the company reported $3.96 billion in the same quarter last year.
It is projected by analysts that the 'Investment banking fees' will reach $1.33 billion. Compared to the present estimate, the company reported $1.19 billion in the same quarter last year.
According to the collective judgment of analysts, 'Total fees and commissions' should come in at $8.74 billion. The estimate compares to the year-ago value of $8.14 billion.
The consensus among analysts is that 'Service charges' will reach $1.51 billion. Compared to the present estimate, the company reported $1.46 billion in the same quarter last year.
View all Key Company Metrics for Bank of America here>>>
Bank of America shares have witnessed a change of +3.1% in the past month, in contrast to the Zacks S&P 500 composite's +5.9% move. With a Zacks Rank #3 (Hold), BAC is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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