Technical Analysis Post

Bank Of America ( NYSE : BAC ) Q2 Earnings Release: Market Insights, Analyst Forecasts, and Technical Analysis

| 16 July, 2024 at 13:12 GMT

On July 9, 2024, at 9:00 AM Eastern, Bank of America announced that it will disclose its Q2 2024 financial results on Tuesday, July 16, with the release scheduled for around 6:45 a.m. ET, followed by an investor conference call at 8:30 a.m. ET. The news release, supplemental filing, and investor presentation will be available on Bank of America’s Investor Relations website at https://investor.bankofamerica.com/quarterly-earnings.

Market Cap

Bank of America, with a market cap of $327.55 billion as of July 2024, is ranked as the 29th most valuable company in the world, based on data from companiesmarketcap.com.

Dividend Information 

As of June 7, 2024, the stock has a 2.29% dividend yield with an annual dividend of $0.96, paid quarterly. With a payout ratio of 33.10% and a 10-year growth rate of 9.09%, the stock also boasts a 1.84% buyback yield, contributing to a total shareholder yield of 4.13%.

Recent Development At Bank Of America 

Here are the latest updates from Bank of America:

– Bank of America fully redeems Series JJ Preferred Stock and Series U Preferred Stock along with related Depositary Shares.

– Soles4Souls receives a $150,000 grant from Bank of America to expand its entrepreneurship program in the Dominican Republic.

– Bank of America plans to increase its quarterly dividend by 8% to $0.26 per share following positive stress test results.

– Bank of America announces CORRA as the substitute base rate for certain debt securities linked to CDOR after June 28, 2024.

– Bank of America declares third-quarter 2024 dividends for preferred stock.

– Bank of America to participate in the Morgan Stanley US Financials, Payments & CRE Conference.

Q1 Earnings Report Recap 

– Bank of America reported net income of $6.7 billion, or $0.76 per diluted share, down from $8.2 billion, or $0.94 per diluted share in Q1-23.

– Adjusted net income, excluding FDIC special assessment, was $7.2 billion, with adjusted diluted earnings per share of $0.832.

– Revenue, net of interest expense, totaled $25.8 billion, a decrease of $440 million, driven by mixed performance in investment banking, asset management fees, and trading revenue, offset by lower net interest income (NII).

– NII fell 3% to $14.0 billion due to increased deposit costs outweighing higher asset yields and modest loan growth.

– Provision for credit losses increased to $1.3 billion, up from $1.1 billion in Q4-23 and $931 million in Q1-23.

– Noninterest expense rose by $1.0 billion to $17.2 billion; adjusted noninterest expense, excluding FDIC special assessment, was $16.5 billion, up approximately $300 million.

– Average deposit balances grew to $1.91 trillion, a $14 billion increase from Q1-23; end-of-period deposit balances rose to $1.95 trillion from Q4-23.

– Average loans and leases reached $1.05 trillion, up 1% from Q1-23.

– Common equity tier 1 (CET1) capital increased to $197 billion, with a CET1 ratio of 11.8% (Standardized), 184 bps above regulatory minimum.

– Bank of America returned $4.4 billion to shareholders through dividends and share repurchases.

– Book value per common share increased by 7% to $33.71; tangible book value per common share rose 9% to $24.79.

– Return on average common shareholders’ equity (ROE) was 9.4%, and return on average tangible common shareholders’ equity (ROTCE) was 12.7%; adjusted ROE and adjusted ROTCE were 10.2% and 13.8%, respectively.

Q2 Earnings Report Analyst Forecast 

For the current quarter, sales estimates suggest a Zacks Consensus Estimate of $25.19 billion, based on 7 estimates, with a range from a high of $25.54 billion to a low of $25.00 billion, slightly down from $25.20 billion a year ago, reflecting a year-over-year growth estimate of -0.05%. Earnings estimates indicate a Zacks Consensus Estimate of $0.79 per share from 8 estimates, aligning closely with the most recent consensus. The range spans from a high of $0.85 to a low of $0.75, down from $0.88 in the same quarter last year, forecasting a year-over-year decline of -10.23%.

Investing.com forecasts Bank of America Corp (NYSE: BAC) to attain earnings per share (EPS) of $0.7971 and generate revenue totaling $25.24 billion.

According to Tradingview.com, Bank of America Corp (NYSE: BAC) is expected to achieve earnings per share (EPS) of $0.80 and generate revenue of $25.22 billion.

Technical Analysis 

– Bank of America breaks resistance in ascending triangle pattern on 4HR Chart at $40.47 on Tradingview.

– Potential upside target at $44.68; further breakout could target $50.03.

– Failure to sustain breakout may lead to downside support at $37.16; break below could target $34.57.

Apply Risk Management 

Conclusion 

In anticipation of Bank of America’s Q2 2024 earnings release, scheduled for July 16, 2024, the bank has navigated a challenging economic landscape with resilience. Despite a slight dip in Q1 earnings, projections for Q2 suggest stability with an estimated EPS of $0.7971 and revenue of $25.24 billion from Investing.com. Tradingview.com forecasts a similar performance with an EPS target of $0.80 and revenue reaching $25.22 billion. Technical analysis highlights a breakout above resistance levels, signaling potential price targets of $44.68 and $50.03, contingent upon sustained market momentum. With robust shareholder returns and strategic initiatives like dividend increases, Bank of America remains well-positioned for future growth, reflecting confidence in its financial strength and operational efficiency.

Sources:

https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/07/bank-of-america-to-report-second-quarter-2024-financial-results-.html

https://companiesmarketcap.com/bank-of-america/marketcap/

https://stockanalysis.com/stocks/bac/dividend/

https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/06/bank-of-america-comments-on-stress-test-results–plans-to-increa.html

https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/06/bank-of-america-corporation-announces-fallback-rate–corra–as-s.html

https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/06/bank-of-america-declares-third-quarter-2024-preferred-stock-divi.html

https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/06/bank-of-america-to-participate-in-the-morgan-stanley-us-financia.html

https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/05/bank-of-america-announces-full-redemption-of-its-series-jj-prefe.html

https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/05/soles4souls-receives–150-000-grant-from-bank-of-america-to-expa.html

https://images.app.goo.gl/f73H1Y7o7FTSdhHN6

https://d1io3yog0oux5.cloudfront.net/_79fc248ea7589c270aaee12c6335f56c/bankofamerica/db/806/10044/earnings_release/The+Press+Release_1Q24_ADA.pdf

https://www.zacks.com/stock/quote/BAC/detailed-earning-estimates

https://www.investing.com/equities/bank-of-america-earnings

https://www.tradingview.com/symbols/NYSE-BAC/forecast/