Photo: Lisa Du, Business Insider
Last quarter, Bank of America beat expectations, but is that going to last?The bears have a good argument. Bank of America sold a ton of assets last year (its stake in the Commercial Bank of China, for one), and that’s why it was able to raise so much cash.
It looks like it’s still in cash raising mode too. Yesterday the bank announced that it was selling all of its non-U.S. wealth management business.
That’s what we know. What we don’t know is when the bank will run out of things to sell to raise the cash it needs. See, as Oppenheimer pointed ou after its last earnings announcement, BofA still had a huge problem with profits and losses.
You may want to watch out for that in tomorrow’s earnings report.
In the mean time here are The Street’s expectations (via Forbes):
Over the past month, the consensus estimate has jumped from 11 cents, but it’s below the estimate of 18 cents from three months ago. Analysts are projecting earnings of 68 cents per share for the fiscal year.
A year after being $32.71 billion, analysts expect revenue to fall 31.2% year-over-year to $22.51 billion for the quarter. For the year, revenue is projected to come in at $91.36 billion.
Forbes goes on to say that 17 of the 23 analysts they spoke to are still calling BofA a hold.
We’ll see if they’re right tomorrow.