Can Improved Trading Performance Aid BofA's (BAC) Q4 Earnings?
Zacks Investment Research | Jan 12, 2020 09:29PM ET
The fourth quarter of 2019 witnessed rise in client activity. Hence, Bank of America’s (NYSE:BAC) trading revenues (constituting a substantial part of its top line) are likely to have improved in the quarter and positively impacted its overall performance. Notably, results of the company are slated to be released on Jan 15, before the market opens.
Though several lingering matters like uncertainty related to the U.S.-China trade conflict and Brexit might have negatively impacted trading activities in the fourth quarter to some extent, positive developments in the same toward the end of the quarter and improving domestic economy are likely to have provided respite, resulting in upswing in client activities.
During an investor conference in December, CEO Brian Moynihan stated that in the fourth quarter, trading revenues will likely grow 7-8% year over year.
The Zacks Consensus Estimate for the Global Markets segment’s (under which trading revenues are accounted for) net revenues also suggests the same. The consensus estimate for net revenues of $3.56 billion indicates rise of 9.8% from the year-ago reported number.
Overall Earnings & Revenue Growth Expectations
The Zacks Consensus Estimate for BofA’s earnings for the fourth quarter is pegged at 68 cents, which indicates a decline of 2.9% from the prior-year quarter’s reported number.
The consensus estimate for sales of $22 billion suggests a 3.2% decline on a year-over-year basis.
Bank of America Corporation Price and EPS Surprise
Zacks Investment Research
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