On the surface, the latest Q3 bank numbers to come out of Bank of America today, were not quite as bad as those previously reported by the other TBTFs, namely JPM, Wells and Citi. At a (massively adjuste4d) EPS of $0.20, this was just 1 cent below the expected $0.21, even as net revenue of $21.74 billion missed expectations of $21.95 billion. So far so good. At least so good until one realizes that of the $5.1 billion in pretax income, some 1.4 billion, or over a quarter, was from the usual accounting magic well of gimmicks: loan loss reserve releases!
By John R. Conway:I have a love/hate relationship with Bank of America (BAC). From a trader's point of view, I like to trade Bank of America's stock to the upside or downside due to its high beta and how cheap it can be bought or sold using options.
Bank of America Corp (BAC) stock rose by 1.54% to $15.81 yesterday, and is 14% below its 52-week high. Bidness Etc expects the bank to perform well in its second quarter (2Q), even though expenses and reserves might rise due to a potential litigation settlement.
The company is expected to report revenues of $21.6 billion, which is a decline of 5.67% year-over-year (YoY). The adjusted EPS is estimated to be $0.29, compared to $0.34 last quarter.
If yesterday it was JPM's turn to shock and awe everyone with its adoption of FVA and impress with its non-GAAP revenues, today it is the turn of Bank of America to confuse everyone with its traditionally indecipherable earnings release. So here is the punchline. BAC reported revenues of $21.7 billion which beat expectations of $21.14 billion, although more importantly EPS of $0.29 vs expectations of $0.27. So how did BAC generate the better than expected top and bottom line?
Investors were clearly unimpressed by Bank of America’s (NYSE:BAC) results for the first quarter of the year – something made clear by the near-5% decline in the banking giant’s share price over trading on Wednesday, after its earnings announcement [Bank of America Reports First-Quarter 2013
By Adam Alvarez:With each and every passing day it seems companies and our own government take measures that indescribably strive to merely elongate our own economic crisis. Whether turning a blind eye to rising gas prices to baiting us with electric cars to even taking steps to weaken our own currency while falsely denying the inevitable inflation, most in authority just don't seem to understand economics.
If last quarter Bank of America was forced to report a stunning loss, its first in years, as a result of a $6 billion "one-time, non-recurring" litigation charge which clearly was added back to non-GAAP earnings because it could not possibly become a part of ongoing earnings, in Q2 BofA just reported another whopper of a litigation charge, this time totaling $4 billion.
Passenger Liner QE2 will be moved to China and transformed to a luxurious 500-room hotel. Bank of America announced its Q4 report. Rio Tinto with new Chief executive. Intel sales and profit less than expected, because of the weaker PC market.
The recent surge in mortgage rates has hit mortgage refinance applications pretty hard. But the good news is that it hasn't hurt purchase applications yet. The weekly MBA purchase applications announcement out Wednesday morning should give us more of an insight on the issue.