NEW YORK (TheStreet) -- Shares of Bank of America (BAC - Get Report) are up 3.60% to $15.25 on Tuesday following news the company resubmitted its smaller capital plan to the Federal Reserve, according to the Wall Street Journal.
Bank of America is working to overcome the $4 billion capital error it disclosed in April. The company's mistake forced it to place plans on hold to return capital to shareholders.
The Fed gave the bank until today to resubmit a new plan.
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The Fed has 75 days to review Bank of America's new proposal. "There can be no assurance as to the timing or outcome of the Federal Reserve's review," the Associated Press reports Bank of America as saying.
Details of the plan were not released but the bank said Tuesday the change will result in a less than one-basis point reduction in reported capital ratios for the quarter which ended Sept. 30, 2013, the AP reported.
- The gross profit margin for BANK OF AMERICA CORP is currently very high, coming in at 84.82%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.08% is in-line with the industry average.
- BANK OF AMERICA CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($0.93 versus $0.91).
- BAC, with its decline in revenue, slightly underperformed the industry average of 2.2%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANK OF AMERICA CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: BAC Ratings Report