Bank of America Profit Beats Estimates: Hot Trends

NEW YORK ( TheStreet) -- Popular searches on the Internet include Bank of America ( BAC) after the company reported third-quarter profit that beat expectations.

The bank reported profit of $340 million for the quarter, or breakeven on a per-share basis, on revenue of $22.5 billion. Analysts had expected the bank to report a net loss of $94 million, or 7 cents a share, on revenue of $21.9 billion.

While a $1.6 billion litigation expense weighed on the results this quarter, the bank attributed its higher-than-expected results to income from mortgage lending, trading and investment banking.

Last year, Bank of America launched a cost-cutting program that included the elimination of 30,000 jobs. The program's goal is to save the bank $8 billion in annual expenses.


A123 Systems ( AONE) is trending after the electric car-battery manufacturer filed for Chapter 11 bankruptcy protection on Tuesday.

The company failed to make a debt payment earlier this week, after losing $83 million in the second quarter.

China-based Wanxiang Group had agreed to invest up to $465 million in A123 in exchange for 80% of the company. A123, reportedly under pressure from federal lawmakers about U.S. technology leaving the country to go to foreign competitors, backed out of the deal on Tuesday.

The company is selling $125 million of its auto assets to Johnson Controls ( JCI), which will provide financing to the company in bankruptcy. It will receive all of A123's automotive assets and will take over its factories in Michigan and China.

A123 Systems received $249 million in federal grants as part of the government's stimulus bill in August 2009. President Obama's administration has backed A123 and other alternative energy companies in its support of electric cars.

A123 didn't turn a profit in its 11-year history.


Bank of New York Mellon ( BK) is another popular search. The bank reported third-quarter results that beat expectations.

The bank reported third-quarter earnings that climbed 11%. It also reported net income of $720 million, or 61 cents a share, beating expectations of a profit of 54 cents a share. Total revenue for the third quarter was $3.68 billion, beating estimates of $3.6 billion.

Bank of New York Mellon also reported $779 million in investment management and performance fee income, a 7% rise from a year ago. The company attributed the increase to "higher market value and net new business." BNY Mellon also said earnings were boosted by four cents a share from a lower-than-expected effective tax rate.

Last year, BNY Mellon cut jobs and aimed to save up to $700 million by 2015 through improved operations.

Bank of New York Mellon is the world's largest custody bank.


The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move.

-- Written by Brittany Umar.
Brittany joined TheStreet.com TV in November 2006 after completing a degree in Journalism and Media Studies at Rutgers College. Previously, Brittany interned at the local ABC affiliate in New York City WABC-TV 7 where she helped research and produce On Your Side, a popular consumer advocacy segment.