Bank of America Corp Stock Falls Despite Q4 Earnings Beat
Bank of America Corp (NYSE:BAC) stock was down today despite an earnings beat for the fourth quarter of 2017.
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During the fourth quarter of the year, Bank of America Corp reported earnings per share of 47 cents. This is up from its earnings per share of 38 cents from the same time last year. It also beat out Wall Street’s earnings per share estimate of 44 cents for the quarter.
Despite the positive earnings per share for the quarter, Bank of America Corp’s revenue didn’t fare as well. Revenue for the quarter came in at $20.45 billion. This is an increase over its revenue of $19.99 billion from the fourth quarter of 2016. However, it was bad news for BAC stock by coming in below analysts’ revenue estimate of $21.53 billion for the period.
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Bank of America Corp reported net income of $2.37 billion in the fourth quarter of 2017. This is a decrease when compared to its net income of $4.54 billion that was reported in the same quarter of the previous year.
Bank of America Corp notes that its earnings for the fourth quarter of 2017 were heavily impacted by recent tax charges. This includes reported earnings per share of 20 cents due to a 27 cents tax fee. Noninterest income was also down $724 million during the quarter thanks to the tax legislation and decreasing mortgage banking income.
Bank of America Corp isn’t the only financial company that is seeing the effects of the new tax legislation. Goldman Sachs Group Inc (NYSE:GS) also saw its stock drop today on tax losses, despite beating estimates for the fourth quarter of 2017.
BAC stock fell as much as 2% Wednesday morning, but is now only down slightly as of noon Wednesday.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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