Bank of America (NYSE:BAC) Posts Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Bank of America missed quarterly estimates: EPS was $1.08 versus the $1.10 consensus, while revenue of $29.96 billion fell short of the $30.58 billion forecast. Shares opened down 1.0% at $54.05.
• Underlying banking trends were positive, with net interest income up 8% year over year to $16.4 billion, deposits rising 2% to $2.02 trillion, and loans and leases growing 6% to $1.23 trillion.
• The company increased its quarterly dividend to $0.32 per share, or $1.28 annualized, representing a 2.4% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $64.22.

Bank of America Corporation (NYSE:BAC) released its quarterly earnings data on Wednesday. The financial services provider reported $1.08 EPS for the quarter, missing analysts' consensus estimates of $1.10 by ($0.02), FiscalAI reports. Bank of America had a return on equity of 12.20% and a net margin of 17.56%. The business had revenue of $29.96 billion for the quarter, compared to the consensus estimate of $30.58 billion.

Bank of America Stock Down 1.0%

Shares of NYSE:BAC opened at $54.05 on Wednesday. The company's fifty day moving average is $59.75 and its 200-day moving average is $56.67. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. Bank of America Corporation has a 52 week low of $46.12 and a 52 week high of $65.22. The company has a market capitalization of $377.93 billion, a PE ratio of 12.40, a P/E/G ratio of 0.88 and a beta of 1.21.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were paid a $0.32 dividend. The ex-dividend date was Friday, September 4th. This represents a $1.28 annualized dividend and a dividend yield of 2.4%. This is a boost from Bank of America's previous quarterly dividend of $0.28. Bank of America's dividend payout ratio is presently 29.36%.

Analyst Ratings Changes

A number of research firms recently weighed in on BAC. HSBC started coverage on shares of Bank of America in a research note on Monday, September 28th. They issued a "buy" rating and a $65.00 target price on the stock. Citigroup raised their price target on shares of Bank of America from $62.00 to $66.00 and gave the stock a "buy" rating in a research note on Tuesday, June 23rd. Rothschild & Co Redburn set a $72.00 price target on shares of Bank of America in a research note on Tuesday, October 6th. Oppenheimer downgraded Bank of America from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 30th. Finally, Barclays upped their price objective on Bank of America from $71.00 to $72.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Nineteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Bank of America presently has a consensus rating of "Moderate Buy" and an average target price of $64.22.

Trending Headlines about Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Underlying banking trends were constructive: net interest income increased 8% year over year to $16.4 billion, average deposits rose 2% to $2.02 trillion, and average loans and leases grew 6% to $1.23 trillion. Bank of America also returned $8.3 billion to shareholders through dividends and share repurchases. Bank of America Reports $6.9 Billion Third-Quarter Net Income
• Neutral Sentiment: Reported third-quarter net income was $6.9 billion, while revenue reached approximately $30.0 billion. Credit costs included $1.3 billion of provision expense and $1.3 billion in net charge-offs, keeping asset quality and loan-loss trends important for investors. Bank of America Reports Third Quarter 2026 Financial Results
• Negative Sentiment: Headline earnings missed expectations. One market report cited EPS of $1.08 versus a $1.10 consensus, while the company’s reported diluted EPS was $0.91, down from $1.04 a year earlier, after including a large regulatory charge. Revenue of about $30.0 billion was also below the roughly $30.6 billion estimate. Bank of America Third-Quarter Earnings
• Negative Sentiment: U.S. regulators imposed more than $1.2 billion in penalties over anti-money-laundering and sanctions-compliance failures, including the alleged failure to report more than $5 billion in suspicious transactions. Bank of America acknowledged willful Bank Secrecy Act violations, raising concerns about governance, controls and potential future regulatory scrutiny. Bank of America Hit With More Than $1.2 Billion in Penalties

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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