BOSTON ( TheStreet) -- Bank of America ( BAC) has reported quarterly results.
Quarterly Synopsis: Excluding a goodwill impairment charge, Bank of America swung to a fourth-quarter net profit of $756 million, or four cents a share, from a year-earlier loss of $194 million, or 60 cents. However, on a GAAP basis, it remained unprofitable, suffering a loss of $1.2 billion, or 16 cents. Numerous good will impairment charges weighed on the bank in 2010. Its full-year net loss was $2.2 billion, or 37 cents, due to more than $12 billion of accumulated goodwill impairments. On a positive note: the investment bank ranked number two globally and number one in the U.S. for revenue in 2010. Its net charge offs have decreased in three consecutive periods. Earnings Performance: Bank of America's adjusted earnings tally of 30 cents exceeded analysts' consensus estimate of 21 cents by 41%, an ample outperformance. By comparison, Bank of America has an average earnings beat rate of 15%. Its top-line tally of $22 billion missed the expectation by 9.6%. By comparison, Bank of America has an average sales beat rate of 1.1%. Its stock rose less than 1% upon the earnings announcement, which was generally considered a solid report. Capital ratios continue to improve. The Tier I common ratio hit 8.6% during the fourth quarter, up from 7.8% in the year-ago period. Deposit balances reached $1 trillion, a record. Dividend Information: Bank of America is the lowest yielding Dow stock, paying a one cent quarterly dividend, equal to a 0.3% yield. It's expected to more than triple its dividend in the next year as the economic environment improves and earnings normalize. Analyst Opinions: Currently, 21, or 62%, of analysts covering Bank of America rate its stock "buy" and 13 rate it "hold." None rank it "sell." The stock has a median target of $18.29. Raymond James, Strong Buy, $24 Target Credit Suisse, Outperform, $20 Target JPMorgan, Overweight, $20 Target Barclays, Equal Weight, $19 Target Citigroup, Buy, $18 Target Goldman Sachs, Buy, $16 Target Deutsche Bank, Hold, $13 Target