Bank of America Earnings: BAC Stock Ticks 2% Lower on Q3 Revenue Miss

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Bank of America (NYSE:BAC) earnings for the financial company’s third quarter of 2020 have BAC stock falling lower on Wednesday. That’s despite its earnings per share of 51 cents beating out Wall Street’s estimate of 49 cents. The problem comes from revenue of $20.34 billion, which doesn’t meet analysts’ estimates of $20.81 billion.

The logo of Bank of America (BAC) in modern office building in Beverly Hills, California

Source: Tero Vesalainen/Shutterstock

Here’s what else investors need to know about the most recent Bank of America earnings report.

  • Diluted per-share earnings are down 8.9% from 56 cents during the same time last year.
  • Revenue for the quarter comes in 11% lower than the $22.81 billion reported in Q3 2019.
  • The Bank of America earnings report also has net income coming in at $4.88 billion.
  • That’s a 15.6% decline compared to the company’s net income of $5.78 billion from the same period of the year prior.

Brian Moynihan, chairman and CEO of Bank of America, said the following in the earnings report.

“As the economy continued to recover, we generated nearly $5 billion in earnings this quarter, reflecting the diversity of our business model, our industry-leading market position and digital capabilities, and our adherence to responsible growth.”

Bank of America doesn’t discuss guidance in its current earnings report. Even so, we know what Wall Street’s expecting. That includes diluted EPS of 43 cents and revenue of $20.15 billion for Q4. Analysts’ estimates for the full year of 2020 are sitting at $1.68 per share on revenue of $86.43 billion.

BAC stock was down 2.5% as of Wednesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/10/bank-of-america-earnings-drop-back-stock-on-revenue-miss/.

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