Bank of America (NYSE:BAC) earnings for the second quarter of fiscal 2020 have BAC stock dropping on Thursday. That’s in spite of the company reporting adjusted earnings per share (EPS) of 37 cents, which is better than Wall Street’s estimate of 27 cents. Also, the company’s revenue of $22.3 billion comes in above analysts’ estimates of $22.01 billion.
Additionally, the company reported GAAP EPS of 38 cents for the period.
Now, let’s take a closer look at the BAC earnings report:
- Adjusted EPS for the quarter declined 50% from 74 cents during the same time last year.
- Revenue is sitting 4.8% lower than the $23.1 billion from the year-ago period.
- Bank of America’s earnings report also reveals a net income of $3.5 billion.
- That’s 52.1% worse compared to its net income of $7.3 billion from the same period of the year prior.
Brian Moynihan, chairman and CEO of Bank of America, said this about his company’s report:
“In the most tumultuous period since the Great Depression, we delivered for our clients, our employees, our communities and our shareholders. Strong capital markets results provided an important counterbalance to the COVID-19-related impacts on our Consumer business, and our industry-leading digital capabilities allowed us to support clients amid difficult working conditions. We provided billions in credit to clients; announced a $1 billion, four-year commitment to drive economic and racial equality in our communities; strengthened our balance sheet by increasing deposits, capital and loan loss reserves; invested in technology and equipment to help keep our employees safe; and delivered for shareholders, earning more than twice our quarterly dividend.”
The company does not mention any sort of guidance for the rest of FY2020. That said, Wall Street’s estimates for the period call for EPS of $1.44 on revenue of $86.63 billion.
BAC stock was down 2.2% as of Thursday afternoon.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.
