Bank of America (BAC) Swings to Profit in Q1

Bank of America Corporation (BAC) dropped $0.12 to $15.70 in pre-market trading after it reported fiscal 2015 first quarter earnings.

The consumer banking giant handed in earnings of $0.27 per share on revenue of $21.42 billion, missing Wall Street estimates of $0.29 per share on revenue of $21.48 billion. Despite the miss, BofA’s results are positive. The second-largest U.S. bank by assets said Wednesday that its net income came in at $2.98 billion after payments to preferred shareholders, compared to a loss of $514 million a year earlier. The bank had $6 billion in legal expenses last year, causing the company to report a loss.

On valuation measures, Bank of America Corp. shares, which currently have an average 3-month trading volume of 76.33 million shares, trade at a trailing-12 P/E of 43.94, a forward P/E of 9.65 and a P/E to growth ratio of 1.34. The median Wall Street price target on the name is $18.00 with a high target of $22.00. Currently ticker boasts 17 ‘Buy’ endorsements, compared to 11 ’Holds’ and 3 ‘Sell’.

Profitability-wise, BAC has a t-12 profit and operating margin of 5.90% and 29.51%, respectively. The $166.37 billion market cap company currently prints a one year return of 1.28% and a year-to-date loss of around 11%.

The chart below shows where the equity has traded over the last 52 weeks.

Bank of America provides banking and financial products and services for individual consumers, large corporations, and governments worldwide. The firm was founded in 1874 and is based in Charlotte, North Carolina.

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