Bank of America beats analysts estimates
Bank of America is the latest in a string of big banks to beat earnings estimates for the second quarter.
The company reported $3.41 billion in net income or 72 cents per share, representing a 41 percent drop in profits versus last year. Since analysts were expecting just 59 cents, the good news sent Bank of America shares up 12 percent before the market officially opened.
Bank of Anerica’s report included a 3 percent increase in revenue but, did not include Countrywide’s second quarter loss of $2.33 billion. B of A’s acquisition of Countrywide was completed on July 1, one day after the close of the second quarter.
B of A’s shares have relinquished some of this morning’s gains, trading approximately 7 percent higher in the early afternoon.
Recent movements in the financial sector illustrate how much trading activity is due to managing expectations. When the bar is set so low that a 41 percent drop in profits is regarded as good news, could there be something wrong with the bar?
Tags: bank of america, countrywide, Earnings
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