Bank of America Corporation (BAC, Financial) will release the results for fiscal 2017 and its fourth quarter on Jan. 17 before the New York Stock Exchange opens.
For the quarter, 23 analysts are forecasting a range of 41 to 48 cents of net earnings per share.
Source: Yahoo Finance
As you can see in the chart, the average earnings forecast is 44 cents per share. This is a 4--cent increase or plus 10% from the prior-year quarter.
The net income is expected to backed on revenue of $21.53 billion, a 6.50% increase from a year ago. Estimates range from a low of $20.99 billion and a high of $22.14 billion.
Source: Yahoo Finance
If Bank of America meets consensus on quarterly revenue, the U.S. bank will likely close the entire year of 2017 showing revenue – net of interest expense – of no less than $87.91 billion.Â
The chart below offers a picture of Bank America Corp’s revenue over the last five fiscal years as well the U.S. bank’s net profit and net margin. Revenues are net of interest expense.
The trailing twelve months net margin of 23.48% indicates that the profitability of Bank of America Corp is improving. The industry has a net margin of 22.99%.
With a loan-to-asset ratio of 40.60%, the profitability of Bank of America relies more on borrowing than the asset management and trading activities of its peers.
Bank of America's business is more like Wells Fargo & Co. than Citigroup and JPMorgan Chase when determining the company’s source of income.
In addition, with an annualized 0.91% rate, Bank of America is in line with its industry regarding its ROA ratio, which is calculated as net income on total assets. It a measurement of how efficient the bank’s administration has been in converting its investments derived from borrowing, asset management and trading activities into profit. The industry has a ROA of 0.90%.
As of the most recent quarter, Bank of America has $1.63 trillion in total investments and $722.26 billion in cash on hand and securities. Total assets and liabilities are valued $2.28 trillion and $2.01 trillion. Total stockholder equity is $272.46 billion, and the company reported a volume of 10.43 billion shares outstanding on Sept. 30.
Institutions hold 70.53% of Bank of America Corp’s total shares outstanding. Among the top institutional holders, Berkshire Hathaway, Inc, Blackrock Inc. and Vanguard Group, Inc. are prominent with 6.51% stake, 6.39% and 6.36%.
The stock is trading at $31.19 per share with a market capitalization of $325.33 billion, a price-book (P/B) ratio of 1.30 versus an industry median of 1.22, a price-sales (P/S) ratio of 3.90 versus an industry median of 3.44 and a price-earnings (P/E) ratio of 17.82 versus an industry median of 14.62.
(Disclosure: no positions in Bank of America.)
