Have you been eager to see how Bank of America Corporation (BAC Quick QuoteBAC - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Charlotte-based one of the world's largest financial institutions’ earnings release this morning:

An Earnings Beat

BofA came out with earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 38 cents. Also, the figure was up from 27 cents recorded in the prior-year quarter.

Lower expenses were the key reason for the earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for BofA depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.

Further, BofA has a decent earnings surprise history. Before posting the earnings beat in Q4, the company delivered positive surprises in three quarters of the prior four quarters.

Bank of America Corporation Price and EPS Surprise

 

Bank of America Corporation Price and EPS Surprise | Bank of America Corporation Quote

Overall, the company has a positive earnings surprise of 6.4% in the trailing four quarters.

Lower-than-expected Revenues

BofA posted net revenues (FTE basis) of $20.2 billion, which was below the Zacks Consensus Estimate of $20.6 billion. However, it compared favorably with the year-ago number of $19.8 billion.

Key Statistics/Developments

Investment banking fees were $1.2 billion, down 4%
Sales and trading revenue (excluding net DVA) up 11%
Provision for credit losses down 4% to $774 million
Non-interest expense fell 6% to $13.2 billion
Raised share repurchase authorization by $1.8 billion for first half 2017

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #1 (Strong Buy) for BofA. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank stocks here.)

How the Market Reacted So Far

Following the earnings release, BofA shares were up marginally in the pre-trading session. This is in contrast with what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.

Check back later for our full write up on this BofA earnings report!

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