We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bank of America (BAC) Reports Q4 Earnings: What Key Metrics Have to Say
Read MoreHide Full Article
Bank of America (BAC - Free Report) reported $21.96 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 10.5%. EPS of $0.70 for the same period compares to $0.85 a year ago.
The reported revenue represents a surprise of -8.79% over the Zacks Consensus Estimate of $24.07 billion. With the consensus EPS estimate being $0.69, the EPS surprise was +1.45%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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): 80.2% compared to the 67% average estimate based on seven analysts.
Net interest income/yield on earning assets - Yield/rate: 2% versus the seven-analyst average estimate of 2%.
Total earning assets - Average balance: $2,829.77 billion versus $2,734.69 billion estimated by seven analysts on average.
Net charge-off / Average Loans: 0.5% versus 0.4% estimated by six analysts on average.
Total nonperforming loans, leases and foreclosed properties: $5.63 billion compared to the $5.33 billion average estimate based on five analysts.
Tier 1 Capital Ratio: 13.5% versus the four-analyst average estimate of 13.6%.
Total Non-Performing Loans: $5.49 billion compared to the $5.30 billion average estimate based on four analysts.
Tier 1 Leverage Ratio: 7.1% versus 7.3% estimated by three analysts on average.
Total Noninterest Income: $8.01 billion versus the seven-analyst average estimate of $9.56 billion.
Net Interest Income- Fully taxable-equivalent basis: $14.09 billion versus the seven-analyst average estimate of $14.03 billion.
Investment banking fees: $1.15 billion versus the six-analyst average estimate of $1.09 billion.
Other income: -$1 billion versus -$1.16 billion estimated by six analysts on average.
Shares of Bank of America have returned -2.3% over the past month versus the Zacks S&P 500 composite's +3.5% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bank of America (BAC) Reports Q4 Earnings: What Key Metrics Have to Say
Bank of America (BAC - Free Report) reported $21.96 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 10.5%. EPS of $0.70 for the same period compares to $0.85 a year ago.
The reported revenue represents a surprise of -8.79% over the Zacks Consensus Estimate of $24.07 billion. With the consensus EPS estimate being $0.69, the EPS surprise was +1.45%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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): 80.2% compared to the 67% average estimate based on seven analysts.
- Net interest income/yield on earning assets - Yield/rate: 2% versus the seven-analyst average estimate of 2%.
- Total earning assets - Average balance: $2,829.77 billion versus $2,734.69 billion estimated by seven analysts on average.
- Net charge-off / Average Loans: 0.5% versus 0.4% estimated by six analysts on average.
- Total nonperforming loans, leases and foreclosed properties: $5.63 billion compared to the $5.33 billion average estimate based on five analysts.
- Tier 1 Capital Ratio: 13.5% versus the four-analyst average estimate of 13.6%.
- Total Non-Performing Loans: $5.49 billion compared to the $5.30 billion average estimate based on four analysts.
- Tier 1 Leverage Ratio: 7.1% versus 7.3% estimated by three analysts on average.
- Total Noninterest Income: $8.01 billion versus the seven-analyst average estimate of $9.56 billion.
- Net Interest Income- Fully taxable-equivalent basis: $14.09 billion versus the seven-analyst average estimate of $14.03 billion.
- Investment banking fees: $1.15 billion versus the six-analyst average estimate of $1.09 billion.
- Other income: -$1 billion versus -$1.16 billion estimated by six analysts on average.
View all Key Company Metrics for Bank of America here>>>Shares of Bank of America have returned -2.3% over the past month versus the Zacks S&P 500 composite's +3.5% 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.