Bank of American Corporation ($BAC) Earnings (Q1 FY22)

 Bank of America Corporation ($BAC) Earnings and Opinions:


Bank of America is a company in the Financial Services sector and operates in the Banks-Diversified industry. The company offers financial and banking services ranging from an individual consumer to governments worldwide. Bank of America was founded in 1784 and is currently headquartered in Charlotte, North Carolina. The company made its debut on the stock market in 1978. 

Bank of America EPS and Revenue (Q1 FY22):

  • EPS of $0.80 beating expectations of $0.86
  • Revenue of $23.2B in line with expectations of $23.2B
  • EPS was down 7% (YOY) and Revenue was up 2% (YOY)
Bank of America Q1 Highlights:
  • Net Income of $7.1B
  • Average loan and lease balances up $70B
  • Return on average shareholders equity at 11%
Opinion:
Bank of America is currently trading higher today after reporting a mediocre earnings report. The company had a slight beat on earnings and was tied with expectations on revenue. The banking stocks have had a little bit of a letdown during this quarters earnings. We got some hope from this earnings report with numbers coming in a little bit better than Wall St. investors were expecting. You can credit the companies ability to maintain solid lending rates while being able to lower costs. The company was still able to beat the net income expectations even though the number reported was noticeably smaller than this exact time last year. The EPS was down from last year and revenue had a slight increase compared to last year. Going into this year on a downfall, a lot of people were bullish on banking stocks, but that has proven to not be the best so far. We saw an unexpected war breakout overseas that caused a lot of turmoil in the economy and led to a lot of stocks continuing decreases. However, with an earnings report like this wrapping up the banking sectors earnings, we can have some more hope heading into the back half of this year. This is good news not only for Bank of America shareholders, but for a lot of the other banking stocks who took some hits on bad earnings reports. You can also see in the earnings release that it had about a 11% return on equity for shareholders, which is a noticeable return compared to an average of 8%. I see a lot of potential with this stock and it is honestly one of my favorite banking stocks. They do a lot of things right and have a solid dividend, this is also a big stock in Warren Buffet's portfolio, so I like it in that sense as well. I recommend picking up this stock if you are looking for one in the banking industry and look for it to get some upside as we head toward the end of the year. 


*Information from Bank of America, Yahoo Finance, Nasdaq
*Estimates from Zacks

Comments

Post a Comment

Popular posts from this blog

Weekly Earnings Review: September 25, 2023- September 29, 2023

     It was a nice little break in the earnings report, but just like that we are back! We are slowly easing our way back into earnings season. However, this week marked the end of Q3 and September. September was a downturn from the rally we saw earlier in the year. There is a lot of stuff looming as the government is set to shut down on October 1st. The Fed is keeping a close eye on inflation but this weeks prints showed some signs of improvement. The average consumer is struggling as savings keep dwindling. In terms of our earnings, we just had two companies that reported this week. One is a warehouse style retailer and the other is a wide range consulting firm.  Tuesday, September 26, 2023 Costco Wholesale Corporation (COST)-     Costco beat expectations on both the top and bottom line. The stock saw a decline after the initial earnings report, but by the end of the week it has hit a new 52-week high. The revenue growth was impressive as it grew by a hair under 10%. The COGS growth
Read more

Weekly Earnings Review: October 16, 2023- October 20, 2023

      Well earnings season is finally among us, so we will start producing more beefier blog posts and cover a lot more companies over these next few weeks. I had one company report last week that I decided to throw into this weeks post, because I felt that it was pointless to make a post with just one boring company. With the inclusion of that company, we will cover 7 companies that report earnings this week and will give your our thoughts and opinions on how they performed during the quarter and the outlook. There is a lot of controversy going on with a war breaking out in Israel and the House of Representatives with out a speaker. This year seems to be the year of how geopolitics affect the market. There seems to be a lot of confusion with the outlook of the market right now, but inflation numbers still look to be fair and the earnings of major companies will be able to tell us a little bit more about where this is headed.  Thursday, October 12, 2023 Walgreens Boots Alliance (WBA)-
Read more

Weekly Earnings Review: November 27, 2023- December 1, 2023

Image
     Stocks continue to rise as we enter the final month of trading for the year. The S&P 500 and Nasdaq had another stellar month. Bond yields continue to fall, as interest rates have seemed to reach their peak. Estimates are all over the place when it comes to when cutting will start and how many cuts we will see next year. I added a new mantra to particular companies. I want to add some visual pieces to the post to entice the readers. Hope you guys enjoy the visuals and the excerpts. Stay investing! Monday, November 27, 2023 Zscaler (ZS)-      Zscaler continues to carry its momentum, as the company beat on both the top and bottom lines. The company achieved 40% growth on the top line and saw impressive growth on the bottom line as well. Management raised guidance and are expecting around 30% growth on both the top and bottom line. What is so impressive about this company is that they are achieving high growth and high profitability. This is a feat that a lot of software companie
Read more