Bank of America Corp. (NYSE: BAC) – Q2 FY 2011 Earnings on July 19
By:NewsyStocks   Thursday, July 07, 2021 1:08 PM



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.


 

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