BANK OF AMERICA Q4 PROFIT TOPS EXPECTATIONS; STOCK FALLS
In the Premarket trading session, Bank of America’s stock was trading at 34.73- lower by 1.67% as compared to the previous closing price.
The bank reported its earnings for the fourth quarter before the market opened on Wednesday. Bank of America generated an EPS of 74 cents for the fourth quarter of 2019. The EPS was above the consensus estimates of 69 cents as the bank repurchased shares. Revenue of $22.35 billion was also above the market expectation of $22.22 billion. The bank posted better-than-expected earnings as the company’s bond trading division posted a strong showing, eclipsing declines at its three other major businesses.
Loan growth of 6% at Bank of America outpaced those reported by rivals JP Morgan and Citigroup. Bank’s CEO Brian Moynihan said that the company returned a record $34 billion in excess capital through stock repurchases and dividends. The North Carolina based company’s net interest margin dropped 17 basis points to 2.35%, just under consensus estimates of 2.36%. Bank of America’s stocks have risen more than 40% in 2019.
On the technical front, the current price is below the MA5 and the MA20. The current price is below the middle line of the Bollinger Bands and is heading downwards. The stock is expected to trade lower today.
TRADE SUGGESTION- LIMIT SELL AT 34.89 TAKE PROFIT AT 34.57 STOP LOSS AT 35.05