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Bank of America (BAC) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended June 2023, Bank of America (BAC - Free Report) reported revenue of $25.2 billion, up 11.1% over the same period last year. EPS came in at $0.88, compared to $0.73 in the year-ago quarter.
The reported revenue represents a surprise of +0.93% over the Zacks Consensus Estimate of $24.97 billion. With the consensus EPS estimate being $0.84, the EPS surprise was +4.76%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Bank of America performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio (FTE basis): 63.31% versus the seven-analyst average estimate of 62.8%.
Net interest income/yield on earning assets - Yield/rate: 2.06% versus the seven-analyst average estimate of 2.14%.
Total earning assets - Average balance: $2,772.94 billion versus the seven-analyst average estimate of $2,680.33 billion.
Net charge-off / Average Loans: 0.33% compared to the 0.36% average estimate based on six analysts.
Total nonperforming loans, leases and foreclosed properties: $4.27 billion versus the five-analyst average estimate of $4.38 billion.
Tier 1 Capital Ratio: 13.3% versus 13.07% estimated by four analysts on average.
Total Non-Performing Loans: $4.13 billion versus $4.27 billion estimated by four analysts on average.
Tier 1 Leverage Ratio: 7.1% compared to the 7.06% average estimate based on three analysts.
Total Noninterest Income: $11.04 billion compared to the $10.77 billion average estimate based on seven analysts.
Net Interest Income- Fully taxable-equivalent basis: $14.29 billion versus $14.28 billion estimated by seven analysts on average.
Investment and brokerage services: $3.84 billion compared to the $3.98 billion average estimate based on six analysts.
Investment banking fees: $1.21 billion compared to the $1.16 billion average estimate based on six analysts.
Shares of Bank of America have returned +0.7% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Bank of America (BAC) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, Bank of America (BAC - Free Report) reported revenue of $25.2 billion, up 11.1% over the same period last year. EPS came in at $0.88, compared to $0.73 in the year-ago quarter.
The reported revenue represents a surprise of +0.93% over the Zacks Consensus Estimate of $24.97 billion. With the consensus EPS estimate being $0.84, the EPS surprise was +4.76%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Bank of America performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency Ratio (FTE basis): 63.31% versus the seven-analyst average estimate of 62.8%.
- Net interest income/yield on earning assets - Yield/rate: 2.06% versus the seven-analyst average estimate of 2.14%.
- Total earning assets - Average balance: $2,772.94 billion versus the seven-analyst average estimate of $2,680.33 billion.
- Net charge-off / Average Loans: 0.33% compared to the 0.36% average estimate based on six analysts.
- Total nonperforming loans, leases and foreclosed properties: $4.27 billion versus the five-analyst average estimate of $4.38 billion.
- Tier 1 Capital Ratio: 13.3% versus 13.07% estimated by four analysts on average.
- Total Non-Performing Loans: $4.13 billion versus $4.27 billion estimated by four analysts on average.
- Tier 1 Leverage Ratio: 7.1% compared to the 7.06% average estimate based on three analysts.
- Total Noninterest Income: $11.04 billion compared to the $10.77 billion average estimate based on seven analysts.
- Net Interest Income- Fully taxable-equivalent basis: $14.29 billion versus $14.28 billion estimated by seven analysts on average.
- Investment and brokerage services: $3.84 billion compared to the $3.98 billion average estimate based on six analysts.
- Investment banking fees: $1.21 billion compared to the $1.16 billion average estimate based on six analysts.
View all Key Company Metrics for Bank of America here>>>Shares of Bank of America have returned +0.7% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.