On of the world's largest financial institutions, Bank of America Corp.
(NYSE: BAC) is scheduled to report its second quarter FY 2011 Financial
results on July 19. In the last four quarters, the company's reported
EPS exceeded Wall Street's consensus estimates for quarters ended June
2010 and September 2010 by margins of 22.70 percent and 68.80 percent,
respectively. However, for quarters ended December 2010 and March 2011,
the reported EPS missed Wall Street's consensus estimates by margins of
71.40 percent and 37 percent, respectively.
Bank of America is one of the world's largest financial institutions,
serving individual consumers, small- and middle-market businesses,
large corporations and governments with a full range of banking,
investing, asset management and other financial and risk management
products and services. Through its banking subsidiaries and various
nonbanking subsidiaries throughout the United States and in certain
international markets, it provide a diversified range of banking and
nonbanking financial services and products through six business
segments: deposits, global card services, home loans and insurance,
global commercial banking, global banking and markets and global
wealth and investment management, with the remaining operations recorded
in all other.
For Q1 FY 2011
- Bank of America reported total revenue of $27 billion, down 16
percent, compared with total revenue of $32.2 billion in the first
quarter FY 2010. However, sequentially the revenues rose 19 percent from
$22.6 billion in the previous quarter.
- Net income was $2 billion, down 37.5 percent, compared with net
income of $3.2 billion in the comparable quarter last fiscal.
Sequentially, net income increased from a loss of $1.2 billion in the
fourth quarter FY 2010.
- Earnings were $0.17 per diluted share, compared with earnings of $0.28 per diluted share in the first quarter FY 2010.
- BofA strengthened its balance sheet with risk-weighted assets
declining $23 billion and global excess liquidity increasing $50 billion
from the end of 2010 to $386 billion at March 31, 2011.
- Average deposit balances were above $1 trillion, gaining 4
percent from the year-ago period and 2 percent from the fourth quarter
of 2010.
For FY 2010
For FY 2010, BofA reported total revenue of $111.4 billion, down 8
percent from total revenue of $120.9 billion in FY 2009. For the year,
the company reported a loss of $2.23 billion, or $0.37 per share,
compared to net income of $6.2 billion, or $0.29 per share, during last
fiscal year. At the end of FY 2010, the corporation had $2.3 trillion in
assets and approximately 288,000 full-time equivalent employees.
Analysts Forecast
For the second quarter, analysts' EPS estimates range from a low of
$0.13 to a high of $0.39 per share, compared with a consensus estimate
of $0.27 per share to $0.28 per share in the year ago quarter. For this
quarter, analysts' revenue estimates range from a low of $25.53 billion
to a high of $27.40 billion, compared with a consensus estimate of
$26.23 billion to $29.15 billion in the same quarter a year ago. For the
second quarter, the consensus EPS forecast has been increased from
$0.27 per share estimated 30 days ago to the current estimate of $0.28
per share.
In the last 52 weeks, shares of Bank of America traded in the range
of $10.40 to $15.72. The last trading price of the stock was $10.9. On May 4, 2011, UBS initiated the stock
with a Neutral rating.
