This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank of America: Cost-Cutting Loser (Update 1)

Stocks in this article: BAC C PNC I:BKX

When asked for clarification on the company's plan to reduce LAS expenses from $3.1 billion by $1 billion by the fourth quarter of 2013, Thompson said "you should generally expect it to come out throughout the year. It is not something you're going to have to wait for the fourth quarter to see."

Hawken has a neutral rating on Bank of America, with a 12-month price target of $11.50, estimating the company will earn 95 cents in 2013, with EPS climbing to $1.20 in 2014.

Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.


Citigroup reported fourth-quarter earnings of $1.2 billion, or 38 cents a share. Excluding credit valuation and debit valuation adjustments, the company earned $2.2 billion or 69 cents a share, missing the consensus estimate of 96 cents.

Citigroup's earnings were reduced by charges related to its restructuring announced in the fourth quarter, as well as a declining release of loan loss reserves.

Net income for all of 2012 totaled $7.5 billion, or $2.44 a share, declining from $11.1 billion, or $3.63 a share, in 2011. The company said that excluding credit and debit valuation adjustments, losses on minority investments and costs from the company's fourth-quarter repositioning, 2012 operating earnings totaled $11.9 billion, increasing from $11.1 billion in 2011.

During the company's earnings conference call, Citigroup CEO Michael Corbat -- who replaced Vikram Pandit in the top spot after Pandit was shown the door in October -- was asked by CLSA Securities analyst Mike Mayo the following question: "If in five years from now you were to look back at your performance, what would you want to see to show that you were successful?" Corbat replied that "we've got to get to a point where we stop destroying our shareholders' capital. That would certainly be at the top of the list. That we run a smart and efficient business that's good at its allocation of its resources around its customer and client segments, that it's continued to have the ability to lead and accompany those clients around the world, that it served a social purpose."

Bloomberg later reported in an investor alert that Mayo had upgraded Citigroup to a "Buy" rating from "Outperform," with a $50 price target.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs