Bank of America Corp. is set to release its third-quarter earnings update, aiming to build on the positive momentum of the first half of the year.
What to Expect
Earnings: According to FactSet consensus estimates, Bank of America is anticipated to report third-quarter earnings of 81 cents per share, slightly down from 84 cents per share in the same quarter last year. Despite a minor adjustment from the initial forecast of 83 cents per share, analysts remain optimistic due to the bank's thriving consumer banking unit, which benefits from a robust U.S. economy and strong job market.
Revenue: Analysts are predicting a revenue figure of $25.13 billion for Bank of America in the third quarter, an increase from $24.5 billion in the previous year.
Stock Movement: Bank of America's stock experienced a 4.6% decline during the third quarter, largely due to prevailing bearish sentiment in the industry. In comparison, during the past month, Bank of America's stock declined by 6.1%, whereas the S&P 500 SPX only dropped by 1.7%.
Key Points to Watch For
Deposits Updates: Bank of America will provide updates on its deposits, which have garnered attention as account holders have been moving their funds into higher-yielding products like certificates of deposits.
Fixed-Income Trading Volumes: Amid global market movements and bond yield fluctuations, Bank of America's fixed-income business may see increased trading volumes, representing a potential bright spot for the bank.
Credit-Card Business: With indicators like the monthly jobs report reflecting a strong consumer base, Bank of America's extensive credit-card business could offer valuable insights into the state of the economy.
Stay tuned for Bank of America's upcoming earnings report to gain a comprehensive understanding of the bank's performance in the third quarter.