What to Expect When Bank of America Reports Wednesday
Bank of America is scheduled to release its second-quarter financial results before the markets open on Wednesday.
Bank of America Corp. (NYSE: BAC | BAC Price Prediction) is scheduled to release its second-quarter financial results before the markets open on Wednesday. The consensus estimates are calling for $0.71 in earnings per share (EPS) and $23.23 billion in revenue. The same period of last year reportedly had $0.63 in EPS and $22.76 billion in revenue.
Bank of America is one of the top 10 banks repurchasing stock in the coming years. This megabank said that its board of directors approved plans for the company to return as much as $37 billion to common stockholders over the next four quarters in dividends and common stock repurchases. The bank plans to increase its quarterly common dividend by 20% to $0.18 per share.
It also has been authorized to repurchase roughly $30.9 billion in its common shares, and it would include approximately $0.9 billion in repurchases to offset shares awarded under employee stock options during the same period.
Excluding Tuesday’s move, Bank of America had performed more or less in line with the broad markets, with its stock up about 18.6% year to date. In the past 52 weeks, the stock was actually up only 1.6%.
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A few analysts weighed in on Bank of America ahead of the report:
- JPMorgan has an Overweight rating with a $29.50 price target.
- BMO Capital Markets has an Outperform rating and a $37 target.
- Berenberg Bank has a Hold rating with a $30 price target.
- Atlantic Securities has a Neutral rating.
- Jefferies has a Hold rating with a $32 target price.
Shares of Bank of America traded down less than 1% on Tuesday to $29.09, in a 52-week range of $22.66 to $31.91. The consensus price target is $33.13.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
