Bank of America Corporation (NYSE:BAC) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

It's been a good week for Bank of America Corporation (NYSE:BAC) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.4% to US$43.98. The result was positive overall - although revenues of US$25b were in line with what the analysts predicted, Bank of America surprised by delivering a statutory profit of US$0.83 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Bank of America

Following the latest results, Bank of America's 19 analysts are now forecasting revenues of US$102.0b in 2024. This would be a decent 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 9.1% to US$3.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$101.7b and earnings per share (EPS) of US$3.21 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$43.91, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Bank of America at US$52.00 per share, while the most bearish prices it at US$37.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bank of America's past performance and to peers in the same industry. It's clear from the latest estimates that Bank of America's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bank of America is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$43.91, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Bank of America. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Bank of America going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com