The upcoming report from Bank of America (BAC) is expected to reveal quarterly earnings of $0.95 per share, indicating an increase of 15.9% compared to the year-ago period. Analysts forecast revenues of $27.32 billion, representing an increase of 7.8% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific Bank of America metrics that are commonly monitored and projected by Wall Street analysts.
The consensus among analysts is that 'Efficiency Ratio (FTE basis)' will reach 63.5%. The estimate is in contrast to the year-ago figure of 65.8%.
Analysts' assessment points toward 'Book value per share of common stock' reaching $38.32 . Compared to the current estimate, the company reported $35.79 in the same quarter of the previous year.
It is projected by analysts that the 'Total earning assets - Average balance' will reach $3064.80 billion. Compared to the present estimate, the company reported $2928.73 billion in the same quarter last year.
The collective assessment of analysts points to an estimated 'Total nonperforming loans, leases and foreclosed properties' of $6.34 billion. Compared to the present estimate, the company reported $6.12 billion in the same quarter last year.
Based on the collective assessment of analysts, 'Tier 1 Leverage Ratio' should arrive at 6.7%. Compared to the present estimate, the company reported 6.9% in the same quarter last year.
Analysts forecast 'Total Non-Performing Loans' to reach $6.37 billion. Compared to the present estimate, the company reported $5.98 billion in the same quarter last year.
The combined assessment of analysts suggests that 'Tier 1 Capital Ratio' will likely reach 12.9%. The estimate compares to the year-ago value of 13.2%.
Analysts expect 'Total Noninterest Income' to come in at $11.81 billion. Compared to the present estimate, the company reported $10.99 billion in the same quarter last year.
Analysts predict that the 'Net Interest Income- Fully taxable-equivalent basis' will reach $15.64 billion. The estimate compares to the year-ago value of $14.51 billion.
According to the collective judgment of analysts, 'Investment and brokerage services' should come in at $5.11 billion. The estimate compares to the year-ago value of $4.71 billion.
The consensus estimate for 'Investment banking fees' stands at $1.62 billion. Compared to the present estimate, the company reported $1.65 billion in the same quarter last year.
The average prediction of analysts places 'Total fees and commissions' at $10.02 billion. Compared to the present estimate, the company reported $9.54 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% in the past month, in contrast to the Zacks S&P 500 composite's +1.2% 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 >>>> .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
