Strong Earnings Showcase Our Investment Thesis for This Holding
As we await the earnings call, we're ready to adjust our price target as needed.
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We are starting Tuesday morning with a very nice September quarter earnings report from Bank of America BAC, which delivered top- and bottom-line beats and is giving our shares some additional lift.
Ahead of the company’s earnings call, a quick review of the earnings press release shows that EPS came in at $0.81, a nickel better than the consensus forecast on revenue of $25.3 billion, modestly ahead of the $25.25 billion consensus. Net Interest Income rose 2% sequentially to $14.0 billion and the company continued to take market share as it added 360,000 net new checking accounts during the quarter while its Global Wealth & Investment Management was aided by share gains and record client balances. Investment banking fees rose 18% compared to the year-ago quarter.
All told, the quarter showcases our investment thesis for BAC shares. On the earnings call, we’ll be listening for comments about BofA’s investment banking pipeline and how it sees Fed rate cuts impacting its business from a net interest income perspective but lending and loan activity as well.
As we digest these and other comments during the earnings call, we’ll adjust our $49 price target for BAC shares as needed. We’ll also be sprinkling in what we learn from quarterly results shared on Tuesday morning from Goldman Sachs GS, PNC PNC and Schwab SCHW.
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At the time of publication, TheStreet Pro Portfolio was long BAC.
