Bank of America stock dips as earnings fall short of expectations

Bank of America Corp. (NYSE: BAC) announced Q4 2023 financial results before the opening bell in Wall Street on Friday.

The US bank reported revenue that fell short of estimates of $23.5 billion vs. $23.703 billion expected.

Earnings per share was reported well below analyst expectations at $0.35 per share vs. $0.533 per share estimate.

Company overview

• Founded: 1998 (via the merger of BankAmerica & NationsBank), 1956 (as BankAmerica), 1784 (as its predecessor, the Massachusetts Bank, through the merger with FleetBoston in 1999)
• Headquarters: Charlotte, North Carolina, United States
• Number of employees: 217,000 (2022)
• Industry: Financial services
• Key people: Brian Moynihan (Chairman and CEO), Anne Finucane (Co-Vice chairman), Bruce Thompson (Co-Vice chairman)

CEO commentary

“We reported solid fourth quarter and full-year results as all our businesses achieved strong organic growth, with record client activity and digital engagement. This activity led to good loan demand and growth in deposits in the quarter and full-year net income of $26.5 billion. Our expense discipline allowed us to continue investing in growth initiatives. Strong capital and liquidity levels position us well to continue to deliver responsible growth in 2024,” CEO of Bank of America, Brian Moynihan said in a press release.

Stock reaction

The stock was down by just over 1% on Friday at $32.77 a share.

Stock performance

• 5 day: -5.68%
• 1 month: -3.35%
• 3 months: +21.36%
• Year-to-date: -3.55%
• 1 year: -7.82%

Bank of America stock price targets

• Barclays: $43
• Odean Capital Group: $37.94
• Goldman Sachs: $33
• Oppenheimer: $51
• BMO Capital Markets: $40
• Jefferies Financial Group: $28
• Evercore ISI: $33
• Morgan Stanley: $32
• Piper Sandler: $27.50
• Royal Bank of Canada: $35
• HSBC: $35
• Wells Fargo: $40
• Citigroup: $33
• UBS Group: $36
• JP Morgan: $34

Bank of America Corp. is the 39th largest company in the world with a market cap of $256.76 billion.

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Sources: Bank of America Corp., TradingView, MarketWatch, CompaniesMarketCap, MarketBeat