Bank of America Stock To Beat Earnings Estimates In Q1?

Bank of America Stock To Beat Earnings Estimates In Q1?

Share to Linkedin NEW YORK, UNITED STATES - 2020/05/07: Bank of America logo is seen on one of their branches. (Photo ... [+] by John Lamparski/SOPA Images/LightRocket via Getty Images) Bank of America (NYSE: BAC) is scheduled to report its fiscal Q1 2021 results on Thursday, April 15. We expect Bank of America to miss the consensus estimates for revenues, while earnings are likely to surpass expectations. While the bank has outperformed the consensus earnings estimates in each of the last two quarters, primarily driven by a positive decline in provisions of credit losses on a sequential basis, its revenues have suffered due to weakness in core banking. Bank of America is heavily dependent on its core banking revenues, which suffered in 2020 due to lower consumer spending levels and interest rate headwinds. The company witnessed an 11% y-o-y drop in net interest income, which contributes around 50% of the total revenues. This led to a drop in the full year 2020 revenues, despite a 20% jump in the Global Markets segment driven by higher sales & trading and investment banking revenues. We expect the same trend to drive the first-quarter FY2021 results, as well. Our forecast indicates that Bank