Bank of America Corporation (NYSE:BAC) looks to keep a streak of beating analyst estimates alive when the company reports second-quarter financial results before the market opens Wednesday.
Here’s a look at the current analyst estimates, what analysts are saying ahead of the report, and key items to watch.
Earnings Estimates: Analysts expect Bank of America to report second-quarter revenue of $26.81 billion, up from $25.54 billion in last year’s second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in five straight quarters and in nine of the last 10 quarters overall.
Analysts expect Bank of America to report second-quarter earnings per share of 87 cents, up from 83 cents per share. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.
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What Analysts Are Saying: Several analysts have downgraded Bank of America stock ahead of the quarterly financial results.
HSBC recently downgraded the stock from Buy to Hold, while also raising the price target from $47 to $51.
Analyst Saul Martinez said there are “downside risks” that are not priced into large U.S. banks like Bank of America. The analyst also downgraded JPMorgan and Goldman Sachs.
The analyst noted that factors such as macroeconomic uncertainty, the potential for economic growth to slow going forward, and future interest rate cuts in 2025 and 2026 could impact the stock’s future valuation.
Martinez said regional banks may be more favorably valued and ripe for rallies.
Here are other recent analyst ratings for Bank of America and their price targets:
- Truist: Maintained Buy rating, raised price target from $51 to $53
- RBC Capital: Maintained Outperform rating, raised rice target from $45 to $53
- Baird: Downgraded from Outperform to Neutral, with price target of $52
- Citigroup: Maintained Buy rating, raised price target from $50 to $54
Key Items to Watch: Bank of America’s earnings report comes a day after peer JPMorgan & Chase reported results. JPMorgan beat analyst estimates for both revenue and earnings per share and set the table for high expectations being placed on the banking sector.
One person who will be paying close attention to Bank of America’s earnings report is Berkshire Hathaway Inc (NYSE:BRK)(NYSE:BRK) CEO Warren Buffett. The banking company is the third-largest holding in the conglomerate’s investment portfolio.
The Bank of America stake is valued at $29.2 billion. Berkshire has been cutting its stake in Bank of America in recent quarters. Buffett may be looking for specifics or overall health to determine if it makes sense to further trim the position.
Bank of America’s earnings report and subsequent stock move will also be closely followed by owners of the SPDR Select Sector – Financials ETF (NYSE:XLF), with the bank the fifth largest holding at 4.2% of assets.
Recent stress tests were passed by major banks, which could lead to increased dividend payouts and share buybacks, and also open banks to more capital-intensive uses. Analysts may ask the company how it plans to use its cash after the recent stress test.
BAC Price Action: Bank of America stock was down 1.9% to $46.15 on Tuesday versus a 52-week trading range of $33.06 to $49.30. Bank of America stock is up 4.6% year-to-date in 2025.
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