NEW YORK (
Bank of America
saw its earnings estimates cut by two more analysts Monday after a week in which
Bank of America's earnings, announced Tuesday, had largely been preannounced by the bank June 29. Nonetheless, the bank's shares sold off further after the earnings release but then rebounded later in the week, along with shares of other large banks such as
Analysts typically defended Bank of America's stock, saying the valuation is absurdly low, not withstanding severe mortgage-related headaches stemming from home loans underwritten by the Countrywide Financial unit.
The latest analysts to reduce earnings estimates are Stifel Nicolaus's Chris Mutascio and Wells Fargo's Matt Burnell.
Mutascio cut his 2011 estimates to a $0.30 loss from a $0.15 loss, while dropping his 2012 estimates to a gain of $1.25 from a gain of $1.50. In his report, he focused mainly on the 2012 earnings cuts, attributing them to "the company's lower than anticipated net interest margin in 2Q11 and a change in the timing of when we anticipated the Fed's first interest rate hike."
Wells Fargo's Burnell reduced his estimates to a 19 cent-per-share-loss from a $1.64 gain, according to data from
. The substantial size of the move suggests he was playing catch up after Bank of America's June 29 announcement of an $8.5 billion settlement and more than $20 billion in mortgage-related write-downs. A call to Burnell was not immediately returned.
Written by Dan Freed in New York
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