Brokerages Anticipate Bank of America Corp (BAC) Will Announce Earnings of $0.63 Per Share

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Wall Street analysts expect Bank of America Corp (NYSE:BAC) to report earnings of $0.63 per share for the current fiscal quarter, Zacks reports. Four analysts have issued estimates for Bank of America’s earnings. The lowest EPS estimate is $0.61 and the highest is $0.66. Bank of America reported earnings of $0.48 per share in the same quarter last year, which suggests a positive year over year growth rate of 31.3%. The business is expected to issue its next quarterly earnings report on Friday, October 12th.

According to Zacks, analysts expect that Bank of America will report full-year earnings of $2.52 per share for the current fiscal year, with EPS estimates ranging from $2.47 to $2.56. For the next financial year, analysts forecast that the firm will report earnings of $2.87 per share, with EPS estimates ranging from $2.69 to $3.05. Zacks’ EPS averages are a mean average based on a survey of sell-side research firms that that provide coverage for Bank of America.

Bank of America (NYSE:BAC) last announced its earnings results on Monday, July 16th. The financial services provider reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.06. Bank of America had a net margin of 20.86% and a return on equity of 10.06%. The business had revenue of $22.60 billion during the quarter, compared to the consensus estimate of $22.49 billion. During the same quarter in the prior year, the firm earned $0.46 earnings per share. The business’s quarterly revenue was down .9% compared to the same quarter last year.

Separately, Citigroup increased their target price on shares of Bank of America from $32.00 to $34.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 24th. Nine research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus target price of $32.37.

Shares of BAC traded up $0.02 during mid-day trading on Friday, hitting $30.74. 39,839,500 shares of the company’s stock were exchanged, compared to its average volume of 68,095,102. Bank of America has a fifty-two week low of $22.75 and a fifty-two week high of $33.05. The company has a market capitalization of $319.50 billion, a price-to-earnings ratio of 16.84, a price-to-earnings-growth ratio of 1.54 and a beta of 1.29. The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.90 and a current ratio of 0.91.

Bank of America declared that its Board of Directors has initiated a share buyback plan on Thursday, June 28th that authorizes the company to repurchase $20.60 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 7.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

The business also recently announced a quarterly dividend, which will be paid on Friday, September 28th. Shareholders of record on Friday, September 7th will be issued a $0.15 dividend. This is a boost from Bank of America’s previous quarterly dividend of $0.12. This represents a $0.60 dividend on an annualized basis and a yield of 1.95%. Bank of America’s dividend payout ratio (DPR) is 26.23%.

In other Bank of America news, insider Catherine P. Bessant sold 15,820 shares of the stock in a transaction dated Thursday, August 9th. The shares were sold at an average price of $31.61, for a total value of $500,070.20. Following the completion of the transaction, the insider now directly owns 483,680 shares of the company’s stock, valued at $15,289,124.80. The sale was disclosed in a filing with the SEC, which is available at this link. Company insiders own 0.10% of the company’s stock.

A number of institutional investors have recently modified their holdings of BAC. Janus Henderson Group PLC increased its holdings in Bank of America by 74.9% in the second quarter. Janus Henderson Group PLC now owns 27,655,967 shares of the financial services provider’s stock valued at $779,654,000 after buying an additional 11,842,467 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Bank of America by 16.2% in the second quarter. Dimensional Fund Advisors LP now owns 63,851,681 shares of the financial services provider’s stock valued at $1,800,203,000 after purchasing an additional 8,925,474 shares during the last quarter. Natixis grew its position in shares of Bank of America by 256.8% in the second quarter. Natixis now owns 8,614,786 shares of the financial services provider’s stock valued at $242,851,000 after purchasing an additional 6,200,655 shares during the last quarter. Schroder Investment Management Group grew its position in shares of Bank of America by 47.3% in the first quarter. Schroder Investment Management Group now owns 18,515,313 shares of the financial services provider’s stock valued at $555,274,000 after purchasing an additional 5,946,378 shares during the last quarter. Finally, Fred Alger Management Inc. grew its position in shares of Bank of America by 56.5% in the fourth quarter. Fred Alger Management Inc. now owns 14,842,612 shares of the financial services provider’s stock valued at $438,154,000 after purchasing an additional 5,360,724 shares during the last quarter. 66.88% of the stock is owned by institutional investors.

Bank of America Company Profile

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

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