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Unlocking Q1 Potential of Bank of America (BAC): Exploring Wall Street Estimates for Key Metrics

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Wall Street analysts forecast that Bank of America (BAC - Free Report) will report quarterly earnings of $0.77 per share in its upcoming release, pointing to a year-over-year decline of 18.1%. It is anticipated that revenues will amount to $25.28 billion, exhibiting a decline of 3.7% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.1% 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 typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Given this perspective, it's time to examine the average forecasts of specific Bank of America metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts forecast 'Efficiency Ratio (FTE basis)' to reach 65.4%. The estimate compares to the year-ago value of 61.5%.

The consensus estimate for 'Total earning assets - Average balance' stands at $2,838.25 billion. Compared to the current estimate, the company reported $2,671.43 billion in the same quarter of the previous year.

The average prediction of analysts places 'Total nonperforming loans, leases and foreclosed properties' at $5.95 billion. Compared to the current estimate, the company reported $4.08 billion in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Tier 1 Capital Ratio' of 13.6%. Compared to the present estimate, the company reported 13.1% in the same quarter last year.

Analysts expect 'Total Non-Performing Loans' to come in at $5.92 billion. Compared to the current estimate, the company reported $3.92 billion in the same quarter of the previous year.

Analysts' assessment points toward 'Tier 1 Leverage Ratio' reaching 7.2%. The estimate is in contrast to the year-ago figure of 7.1%.

Based on the collective assessment of analysts, 'Total Noninterest Income' should arrive at $11.41 billion. Compared to the current estimate, the company reported $11.81 billion in the same quarter of the previous year.

It is projected by analysts that the 'Net Interest Income- Fully taxable-equivalent basis' will reach $13.95 billion. The estimate is in contrast to the year-ago figure of $14.58 billion.

The combined assessment of analysts suggests that 'Investment and brokerage services' will likely reach $4.04 billion. Compared to the present estimate, the company reported $3.85 billion in the same quarter last year.

According to the collective judgment of analysts, 'Investment banking fees' should come in at $1.34 billion. Compared to the present estimate, the company reported $1.16 billion in the same quarter last year.

Analysts predict that the 'Service charges' will reach $1.42 billion. The estimate is in contrast to the year-ago figure of $1.41 billion.

The consensus among analysts is that 'Market making and similar activities' will reach $3.83 billion. The estimate compares to the year-ago value of $4.71 billion.

View all Key Company Metrics for Bank of America here>>>

Over the past month, shares of Bank of America have returned +1.6% versus the Zacks S&P 500 composite's +0.8% change. Currently, BAC carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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