Bank of America Sees More 2012 Estimate Cuts

NEW YORK (TheStreet) -- Bank of America(BAC) has seen two more analysts reduce 2012 earnings estimates in recent days, following several such actions in the immediate wake of its fourth-quarter earnings report on Jan. 19.

The latest to reduce estimates are Chris Kotowski of Oppenheimer & Co. and Chris Mutascio of Stifel Nicholaus. In a note published Wednesday, Kotowski shaved his estimate to 64 cents from 96 cents, citing "weaker revenue trends and the fact that they have sold additional businesses."

Among businesses the bank has sold are its Canadian credit card business and its correspondent mortgage business.

Mutascio chopped his 2012 estimates in half--to 40 cents from 80 cents-in a note published Thursday.

"For the time being, we believe that earnings don't matter for the stock as the need for additional capital (or the lack thereof) is the primary catalyst. However, at some point we believe investors will start to refocus on earnings power of the franchise, which continues to contract along with its balance sheet," Mutascio wrote.

-- Written by Dan Freed in New York.

>To order reprints of this article, click here: Reprints