considering Bank of America’s past performance, will it be able to beat estimates?
Bank of America Corp. is all set to unveil its earnings for the third trimestral of the fiscal year of 2015 on 14th October. The investors sentiments are expected to be extremely crippled while they enter the earnings season since the series of events that took place recently do not pose a positive scenario for the banking sector in the United States. The costs are likely to rise due to the instability of the macroeconomic situation since the current interest rate is expected to cripple down further which is expected to destabilize the income rate in the quarters to come. So now the major question is that whether Bank of America will beat the analyst projection estimate and be successful in depicting positive earnings.
Bank of America stock news reveals that the overall condition of the banking sector in the United States is not stable at all where projections are nowhere close to being positive. The audiences worldwide are concerned about the future of this industry where analysts are expecting the results for the present quarter to be weak making it extremely uncertain for the upcoming quarters. Apart from that, the reason why banks have mostly withdrawn their ability to fight back in rough times is because of the decision made by the Federal Reserve which is to maintain the interest rate that is currently at a lower level. The environment of banks is extremely heftily priced thus increasing the downward pressure on them.
The financial sector and banks are not likely to redeem themselves in the near future because of which banks have decided to lower down the estimates to a great extent. The estimates are expected to remain low unless the Federal Reserve alters its strategy.
The earnings per share for Bank of America as per the estimates made by Streets are $0.33 in the current quarter. This is lower to their previous quarter EPS which was $0.44. Apart from that the expectations of analyst for the net income margin is also lower than what was reported earlier. The analyst is estimating the adjusted income margin is likely to yield a growth of 18 percent on a year over year basis which is lower than the second quarter.
Despite the earnings estimates for Bank of America stock is not really positive but the thing to be noted about BAC is that it has beaten the analyst estimates for the past nine quarters so this will not come as a huge surprise if they succeed to do so again.