NEW YORK (TheStreet) -- Bank of America (BAC) - Get Report stock is falling by 0.29% to $15.43 in late morning trading on Tuesday, following reports that the company may cut more than 100 jobs in its global banking and global markets units, sources told The Wall Street Journal.
The announcement of the layoffs may come as early as today, The Journal added.
CEO Brian Moynihan has warned of further costs cuts in the company's trading business if results did not improve.
Trading revenue dropped 2% in the second quarter of 2015 and Moynihan expects it to decline 5% to 6% in the third quarter, The Journal noted.
Investment banks in the U.S. have been facing new regulations, which have shrunk revenue, and a slowdown in the world economy that has pushed away some clients.
Separately, TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, impressive record of earnings per share growth, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BAC's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 0.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 132.2% when compared to the same quarter one year prior, rising from $2,291.00 million to $5,320.00 million.
- BANK OF AMERICA CORP reported significant earnings per share improvement in the most recent quarter compared to 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 reported lower earnings of $0.35 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $0.35).
- The gross profit margin for BANK OF AMERICA CORP is currently very high, coming in at 86.17%. Regardless of BAC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BAC's net profit margin of 21.48% compares favorably to the industry average.
- 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. When compared to other companies in the Commercial Banks industry and the overall market, BANK OF AMERICA CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: BAC