Analysts are looking for third-quarter earnings of 21 cents per share on total revenue of $22 billion, according to estimates compiled by Bloomberg . The bank earned 32 cents per share on revenues of $22.7 billion in the second quarter and 23 cents per share on revenues of $20.4 billion in the third quarter of 2012. Revenues in the third quarter of 2011 were $28.5 billion, and in the third quarter of 2010 they were $26.8 billion.
Bank of America was the hardest hit of the big banks by problem mortgage loans tied to the subprime housing boom, so it should have an easier time reducing expenses than peers, according to Paul Miller, analyst at FBR Capital Markets. Miller says JPMorgan Chase (JPM), which reported earnings Friday, did a poor job reducing expenses. Indeed, JPMorgan Chairman and CEO Jamie Dimon sounded pessimistic long-term on his bank's ability to cut costs given intense regulatory scrutiny that shows no sign of letting up.
"The struggle you have with any of these banks is, can you cut costs without cutting revenue? I will give you this.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV