Boston, MA 01/10/2013 (wallstreetpr) – The earnings seasons is about to start and Bank of America Corp (NYSE:BAC) will be the first bank to declare its quarterly results. The bank is expected to declare results before the morning bell on January 15, 2014.
What to expect?
Bank of America Corp (NYSE:BAC) already has had a good year. The shares have been on a roll and the bank has put in some good performance. Legal and settlement issues relating to the mortgage loans are still an issue, but apart from them, the bank has done a good job. Analysts expect the bank to report EPS of $0.89 for the full fiscal with estimates of $1.27 for fiscal 2014. The fourth quarter earnings are expected to be $0.27 per share. This will represent a 30% growth over 3Q2013. Revenues are expected to be $21.28 billion against $21.66 for the same period last year. The bank had declared EPS of $0.03 for 4Q2012.
The restructuring plan of the bank is now paying off. Bank of America has restructured its business and also its expenses including closing down branches and retrenching some employees. Analysts expect that Bank of America (NYSE:BAC)’s business mix, rate sensitivity as well as efficiencies will drive profits in the coming years.
Mortgage Woes Expected To Continue
However, the mortgage woes faced by the bank are expected to continue for some time. The bank had inherited these mortgage woes when it acquired Countrywide Financial in 2008. Little did it realize that the deal would sap so much of its hard earned money. Estimates by experts suggest that Bank of America would have to spend $11.7 billion in penalties. Wall Street is expected to settle the claims with an expense tab totaling $50 billion.
Bank of America seems to have put such thoughts behind it and seems to be concentrating on its business. It is targeting its existing customers for additional business. The bank has already issued more than 1 million new credit cards in the third and fourth quarter.
Analysts are already bullish on this stock and have upgraded it to a ‘buy’ despite a somewhat volatile financial market condition.
