Earnings Preview: Bank of America (BAC) is Expected to Announce Higher earnings
By:NewsyStocks   Tuesday, January 17, 2022 2:00 PM



Bank of America (BAC) is scheduled to announce its fourth quarter earnings on January 19. The company is expected to announce lower net income in comparison to the last quarter on account of headline risk and mortgage business related concerns. The banking company is also likely to remain under pressure due to regulatory constraints.

Expectations

Bank of America is expected to announce its earnings per share for the fourth quarter at $0.28. The company had reported its earnings at $0.04 per share for the corresponding quarter of the last year. Its revenue for the fourth quarter is expected to stand at $26 billion, up from revenue of $28.5 billion it reported for the previous quarter of the year.

Third Quarter Results

Bank of America reported net income of $5.9 billion for the third quarter of FY2011. It had lost $9.1 billion in the second quarter of the year. The banking company's revenue for the third quarter stood at $28.5 billion, while the corresponding figures for the previous quarter was at $13.2 billion. The company improved its earnings per share for the third quarter to $0.56. It had suffered a loss of $0.9 per share for the second quarter of the year. Bank of America is expected to announce $0.01 in dividend per share for the fourth quarter.

Earnings History

Bank of America is expected to report its earnings per share for the financial year 2011 at $0.14. It suffered per share loss in the second quarter of the year, but managed to turn in profits for the remaining quarters of the FY 2011. It has been projected that Bank of America will earn $1.07 in earnings per share for the financial year 2012.

Punch Line

Bank of America is likely to remain under pressure due to strained macroeconomic and regulatory environment. The company is also expected to book losses on account of litigation charges. Unfavorable changes in political and regulatory environment will put further strain on the company's financials. However, Bank of America is expected to normalize its earnings and consolidate its position in the financial services sector.  


 

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