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Bank of America Beats Q3 Earnings Estimates, Shares Fall on Revenue Miss

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On Oct. 13, Bank of America stock fell 2.8 percent after the company posted its third-quarter earnings results. Its earnings beat Wall Street analysts’ consensus estimate, but its sales missed.

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When did Bank of America report earnings?

Bank of America reported its third-quarter 2020 financial results on Oct. 13 before the market opened. The financial services company scheduled its earnings conference call yesterday at 8:30 a.m. ET. Investors can access the webcast and presentation material under the investor relations section of the company’s website.

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Bank of America’s earnings report highlights

In the third quarter, Bank of America reported an EPS of $0.51 compared to $0.56 in the third quarter of 2019. The EPS beat analysts’ average estimate of $0.49. Bank of America generated sales of $20.5 billion in the third quarter, which was 11 percent lower than the third quarter of 2019. The company missed analysts’ average sales estimate of $20.8 billion.

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In the press release, Bank of America CEO Brian Moynihan said, “As the economy continued to recover, we generated nearly $5 billion in earnings this quarter, reflecting the diversity of our business model, our industry-leading market position and digital capabilities, and our adherence to responsible growth.” In the third quarter, Bank of America set aside $1.4 billion for potential loan losses compared to $5.1 billion in the second quarter.

What is Bank of America’s stock price today?

Bank of America stock trades on the NYSE under the ticker symbol “BAC.” The stock was down about 2.2 percent at $24.39 in the pre-market trading session on Oct. 14 as of 8:50 a.m. ET. The stock fell 2.8 percent on Oct. 13 and closed at $24.95 with a market capitalization of $216.2 billion.

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Bank of America stock has risen by 0.3 percent in the last five days, but fallen by 17.3 percent in the last year. The stock is trading 30.2 percent below its 52-week high of $35.72 and 39 percent above its 52-week low of $17.95.

What is Bank of America’s dividend yield?

As of Oct. 13, Bank of America’s dividend yield was 2.89 percent. Currently, the company pays an annual dividend of $0.72 per share. Bank of America has increased its dividend for the last four years by an average of 38.2 percent each year.

What is Bank of America’s stock forecast?

Currently, Wall Street analysts' stock price forecast for Bank of America is $28.80, which suggests a 15.4 percent upside. The highest target price of $37 indicates a 48.3 percent upside, while the lowest target price of $22 indicates an 11.8 percent downside. Among the 30 analysts covering Bank of America, 22 have a buy rating, seven have a hold rating, and one has a sell rating.

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