Bank of America set to report third-quarter results on Wednesday

what happened

Bank of America will release its third-quarter earnings this Wednesday before the market opens. According to stockstory.org, the financial services group generated $31.78 billion in revenue in the previous quarter, a 15% year-on-year increase that exceeded analysts’ expectations. The bank also beat consensus estimates for earnings per share, while slightly missing forecasts for net interest income.

The market currently expects Bank of America’s revenue to increase 4.7% year on year. That would represent a slowdown from the 9.8% growth recorded in the same quarter last year. Analysts covering the company have broadly reaffirmed their estimates over the past 30 days, indicating expectations for the business to maintain its current course.

Bank of America has frequently surpassed Wall Street forecasts and will be the first of its peers to report this earnings season. Sentiment toward the group has weakened, however: peer bank stocks have declined 7% on average over the past month, while Bank of America shares have fallen 8.1%.

why it matters

The report should provide an early reference point for how the quarter is developing across the banking sector. The expected revenue slowdown and recent declines across peer stocks make the results and management commentary particularly relevant to markets.

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