Bank of America (BAC) will announced its second-quarter results on Tuesday, with analysts expecting a profit of 14 cents a share, improving from three cents in the first quarter, and a 90-cent loss in the second quarter of 2011, when the company entered into an $8.5 billion mortgage putback settlement with private investors.
The shares were rose 5% on Friday, to close at $7.82.
In the wake of JPMorgan Chase's second-quarter earnings announcement, KBW analyst Fred Cannon said on Friday that he felt "better about BAC's potential mortgage results after seeing JPM's strong 14% q/q volume growth and the strong margins that remained," and that "while BAC has been losing market share in the mortgage origination business of late, we still view this as a positive indicator and believe that BAC could beat our $1.9B mortgage banking revenue estimate by as much as $300-$400 million and rebound towards 4Q11 results."
Cannon stuck with his second-quarter EPS estimate of 23 cents for Bank of America, which "nets down to about $0.18 excluding an ineffective hedge that should negatively impact the
The shares trade for 0.6 times their reported March 31 tangible book value of $12.87, and for eight times the consensus 2013 EPS estimate of 96 cents. The consensus 2012 EPS estimate is 57 cents. Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.
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