Bank of America (BAC) is expected to report Q1 earnings on Thursday, April 19 with a conference call scheduled for 8:30 am ET.
Analysts are looking for EPS of 12c on revenue of $22.51B. Bank of America earlier this week reported that its card delinquencies dropped to 3.60% from 3.75% in February. The lender's net charge-off rate inched down to 5.48% from 5.56%. Those statistics are in-line with data reported by other large U.S. banks, which have for the most part reported that credit trends improved in Q1. That trend should benefit Bank of America in a number of areas, including mortgages. On the other hand, the outlook for Bank of America's Merrill Lynch unit may not be as strong, as Goldman Sachs (GS) reported that client activity remains low in certain areas, especially in parts of investment banking. Furthermore, JP Morgan (JPM) said that the net income of its investment bank tumbled 29% year-over-year last quarter.
Analysts' outlook on Bank of America has been mixed, as Wells Fargo on April 5 lowered its Q1 EPS estimate for the bank to (8c) from 12c. The firm indicated that it preferred Citigroup (C) and JP Mrogan over Bank of America. Conversely, Guggenheim on April 11 upgraded Bank of America to Buy from Neutral, citing valuation.