Bank of America Crushes Q4 Estimates: Stock Could Rise
Bank of America Crushes Q4 Estimates: Stock Could RiseKey takeawaysOn January 16, Bank of America (BAC) reported stronger-than-expected fourth-quarter results. Increased net interest income driven by higher rates and growth in loans and deposits
Wells Fargo spent $7.3 billion to help buy an earnings beat — was it worth it?
Posted today (3 hours ago)
The $7.3 billion Wells Fargo spent on share repurchases during the fourth quarter failed to prop up its stock price, but it effectively helped the bank one-up its blue-chip rival JPMorgan Chase & Co. with an earnings beat. Was it worth it?
Shares of Goldman Sachs Group Inc. shot up 2.8% in premarket trade Wednesday, after the blue-chip broker stretched its earnings and revenue beat streak to seven quarters, despite a "challenging" market-making environment. Total revenue fell to $8.08 billion from $8.12 billion, but was above the FactSet consensus of $7.50 billion. The revenue beat comes after major-bank peers Citigroup Inc. , J.P. Morgan Chase & Co. and Wells Fargo & Co. missed expectations, while Bank of America Corp. topped. For Goldman, the investing and lending business had the biggest beat, with revenue falling 2.1% to $1.91 billion compared with the FactSet consensus of $1.35 billion. Investment banking revenue declined 4.5% to $2.04 billion, above the FactSet consensus of $1.88 billion, and investment management revenue grew 2.5% to $1.70 billion to top expectations of $1.69 billion. That offset a miss in the institutional client services business, where revenue rose 2.3% to $2.43 billion but was below the FactSet consensus of $2.58 billion. Goldman's stock has tumbled 19% over the past three months through Tuesday, while the SPDR Financial Select Sector ETF has declined 7.0% and the Dow Jones Industrial Average fell 6.7%.
Bank of America's stock surges after beating on revenue, while peers couldn't
Posted today (4 hours ago)
Shares of Bank of America Corp. shot up 4.6% toward a 6-week high in premarket trade Wednesday, after the company beat earnings expectations and also snapped a streak of major banks missing revenue expectations. BofA reported fourth-quarter total revenue that rose to $22.74 billion from $20.44 billion, above the FactSet consensus of $22.35 billion. Earlier this week, Citigroup Inc. , J.P. Morgan Chase & Co. and Wells Fargo & Co. all missed revenue expectations, with J.P. Morgan going as far tobreak a streak of 12-straight beats. For BofA, net interest income rose to $12.30 billion from $11.46 billion, topping the FactSet consensus of $12.20 billion, while noninterest income grew to $10.43 billion from $8.97 billion to beat expectations of $10.12 billion. For revenue, growth in consumer banking, global wealth and investment management and global banking offset a decline in global markets. The stock has lost 6.9% ove the past three months through Tuesday, while the SPDR Financial Select Sector ETF has shed 7.0% and the Dow Jones Industrial Average has declined 6.7%.
How banks are helping workers affected by government shutdown
Posted today (4 hours ago)
A number of banks are offering are stepping up to offer assistance to customers affected by the federal government's partial shutdown. The longest government shutdown in history reached its 26th day on Wednesday with no end in sight. President Donald Trump and Congressional Democrats seem no closer than they were three weeks ago on passing a budget bill.
As loans and revenue shrink, Wells Fargo leans on cost cuts
Posted today (17 hours ago)
Wells Fargo is also experiencing cyclical pressure in mortgage lending, which was once its main money-maker, and has intentionally pulled back from some areas, like auto lending, where executives felt profit potential was limited. Combined with legal and regulatory penalties for its sales abuses, which also involved overcharging hundreds of thousands of customers on auto loans, mortgages and account features they did not request, the bank has struggled to get its profit engine humming again. In lieu of revenue growth, Chief Executive Officer Tim Sloan has laid out an aggressive cost-cutting plan to buoy profits.