He says the Yahoo! earnings were "terrific" not just because of Alibaba, but because the business has stabilized away from Alibaba given the fact that Yahoo! will be able to buy back billions of dollars worth of stock. Cramer thinks Yahoo! could trade into the mid-$40 range.
Cramer says Bank of America's net interest income was "not so hot" and believes the quarter was not stellar, but not bad, either. If the stock was up 44 cents yesterday, then it will give those gains back today. Cramer would buy the stock at less than $15, where he believes it would stabilize because it would be too cheap.
- The revenue growth came in higher than the industry average of 12.1%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BANK OF AMERICA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BANK OF AMERICA CORP increased its bottom line by earning $0.91 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($1.09 versus $0.91).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 369.8% when compared to the same quarter one year prior, rising from $732.00 million to $3,439.00 million.
- The gross profit margin for BANK OF AMERICA CORP is currently very high, coming in at 86.64%. It has increased significantly from the same period last year. Along with this, the net profit margin of 14.08% is above that of the industry average.
- Net operating cash flow has significantly increased by 146.29% to $11,994.00 million when compared to the same quarter last year. Despite an increase in cash flow of 146.29%, BANK OF AMERICA CORP is still growing at a significantly lower rate than the industry average of 385.82%.
- You can view the full analysis from the report here: BAC Ratings Report