Bank of America Corp (NYSE:BAC) released its earnings report for the quarter ending June 30 this morning, July 16, before the market opened. The company showed earnings of $32 per share for the three months period on revenue of $22.9 Billion . The company’s stock will open later on today at a price of $13.92 per share.
In the lead up to the announcement of this report, analysts following Bank of America Corp (NYSE:BAC) were looking for earnings per share of 25 cents and revenue of $22.8 billion for the quarter. In the same three months of 2012, Bank of America managed to earn 15 cents per share on revenue of $22.2 billion.
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A disappointing Year For Bank of America Corp (BAC)
For the year through today, Bank of America Corp (NYSE:BAC) has been one of the poorest performing of America’s big banks. The firm’s stock has gained just under 20% since January 1, beating the S&P 500 by a comparatively weak margin. The banks big rivals have fared much better in a rallying stock market.
Shares in Wells Fargo & Co (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group Inc (NYSE:GS) have all gained more than 25% since the year began. The best performer in the group for the first half of the year was Morgan Stanley (NYSE:MS) which has added more than 37% to shareholder value since the year began. In the same period Citigroup Inc (NYSE:C) gained more than 30%.
Housing is key
Bank of America Corp (NYSE:BAC) is one of the financial institutions most susceptible to changes in the core economy. The bank is particularly exposed to the housing market, and that sectors performance in the first half of 2013 explains a swathe of the company’s performance in the second quarter of the year.
Exposure to the real economy is an ongoing theme at Bank of America Corp (NYSE:BAC). If the housing market continues its slow march back to normality, or actually puts up impressive growth, the bank’s future will be a whole lot brighter. On the other hand, if the real economy takes a turn for the worse, Bank of America Corp (NYSE:BAC) will feel the pinch more than most of its rivals.
Bank of America Corp (NYSE:BAC) executives will host a conference call at 8:30 a.m. EST to discuss today’s earnings report with investors and analysts. Outlook will be key in the course of the call. Analysts want to know where the bank’s leadership think the US economy is heading, and how that will affect the bank.