©Reuters. Earnings forecast for Bank of America
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Bank of America (NYSE:) reveals its next round of results this Monday, April 18. Get ready with Benzinga’s definitive preview of Bank of America’s first quarter earnings.
Net income, earnings and earnings per share Earnings and EPS are useful metrics of profitability. Total earnings, also known as net income, equals total revenue minus total expenses. If we divide net income by the total number of shares outstanding, we get EPS.
Earnings and Income Bank of America’s EPS is expected to be around 0.75, according to sell-side analysts. Sales are likely to be around $23.29 billion. Bank of America reported a profit of 0.86 per share when it released results for the same quarter last year. Sales for that period were $22.93 billion.
Why Analyst Estimates and Earnings Surprises Matter Wall Street analysts who study this company will publish analyst estimates of earnings and EPS. The averages of all analysts’ earnings and EPS estimates are referred to as the “consensus estimates”; These consensus estimates can have a significant effect on a company’s performance during the earnings call.
When a company posts earnings or revenue above or below consensus estimates, it is said to have posted “surprise earnings,” which can cause significant movements in the stock depending on the difference between actual and estimated values.
Wall Street estimates would represent a 12.79% decline in company profits. Revenues would rise by 1.56% in year-on-year terms. Here’s how the company’s reported EPS has matched analyst estimates in the past:
| BPA Estimate | 76 | 71 | 77 | 66 |
| Actual EPS | 82 | 85 | 103 | 86 |
| Income Estimate | 22.23 billion | 21.78 billion | 21.83 billion | 22.13 billion |
| Real Income | 22.16 billion | 22.87 billion | 21.58 billion | 22.93 billion |
Stock Performance Bank of America shares were trading at $38.82 as of April 13. Considering that these returns are generally negative, long-term shareholders are likely to be a bit disappointed with this earnings release.
Don’t be surprised to see stock movement in comments made during his conference call. Bank of America’s conference call is scheduled for 11:00:00 ET and can be accessed here: https://investor.bankofamerica.com/events-and-presentations/events/detail/9524/q4-2021-bank -of-america-earnings-conference-call#register
Read the article also in Benzinga Spain
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