Bank of America Corporation (NYSE:BAC) is one of several banks reporting quarterly financial results this week. Here’s a look at key estimates from analysts ahead of third-quarter financial results on Wednesday, before market open and the key items to watch.
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Earnings Estimates: Analysts expect Bank of America to report earnings per share of 95 cents for the third quarter, up from 81 cents per share in last year’s third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.
Analysts expect Bank of America to report third-quarter revenue of $27.50 billion, up from $25.49 billion in last year’s third quarter.
The company missed analyst estimates for revenue in the second quarter, but has beaten estimates in eight of the last 10 quarters overall.
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What Analysts Are Saying: Multiple analysts have raised their price targets on Bank of America stock ahead of the quarterly earnings report.
Here are some recent analyst ratings on Bank of America and their price targets:
- UBS: Maintained Buy rating, raised price target from $55 to $57
- Evercore ISI: Maintained Outperform rating, raised price target from $49 to $55
- Morgan Stanley: Maintained Overweight rating, raised price target from $50 to $66
- Truist Securities: Maintained Buy rating, raised price target from $51 to $56
Key Items to Watch: Bank of America is one of multiple banking and finance companies set to report this week. The week’s earnings include JPMorgan Chase & Co. (NYSE:JPM), Citigroup and Goldman Sachs on Tuesday, Bank of America, PNC Financial and Morgan Stanley on Wednesday and several others throughout the week.
On Tuesday, JPMorgan Chase & Co. reported its third-quarter financial results, with earnings per share and revenue both exceeding analyst estimates.
JPMorgan CEO Jamie Dimon said the economy “remained resilient” in the quarter, but cautioned that tariffs, trade uncertainty and geopolitical concerns remain heightened going forward, risking sticky inflation.
Many JPMorgan segments, including Consumer & Community Banking, Commercial & Investment Bank and Asset & Wealth Management, each had net income growth of 20% or more in the quarter on a year-over-year basis.
Analysts and investors will be looking for similar growth from Bank of America, with perhaps more positive commentary about what’s ahead.
Bank of America’s report may be compared to its peers this week to see if higher or lower growth could mean losing or gaining market share in the sector.
In the second quarter, Bank of America reported year-over-year declines in several segments, while net interest income, trading revenue and asset management fees helped the company’s overall growth.
One investor who will be closely watching Bank of America’s earnings report is Warren Buffett, CEO of Berkshire Hathaway Inc (NYSE:BRK)(NYSE:BRK).
Bank of America is the fourth-largest holding in Berkshire Hathaway’s investment portfolio, accounting for approximately 10% of assets, with a 605.27 million share stake valued at $29.57 billion, according to CNBC. Berkshire Hathaway owns around 8.2% of the banking giant.
While Bank of America is a large portfolio holding of Berkshire Hathaway, the conglomerate has been selling a portion of its stake in recent quarters.
In the second quarter, Berkshire Hathaway reduced its stake by 4%, while the conglomerate lowered its stake by 7% in the first quarter.
Buffett could be reducing his exposure to bank stocks or identifying a particular weakness in Bank of America. The earnings report and the third-quarter 13F, due in November, could signal whether Buffett still has the same confidence in the banking company moving forward.
BAC Price Action: Bank of America stock is up 2.0% to $49.82 on Tuesday versus a 52-week trading range of $33.06 to $52.88. Bank of America stock is up 12.6% year-to-date in 2025.
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