Bank of America Corporation (NYSE:BAC) is set to release its fourth-quarter earnings with an estimated EPS of $0.78 and projected revenue of $25.1 billion.
The bank’s net interest income is expected to be $14.18 billion for the final quarter of 2024, with total revenue projected at $24.95 billion.
Financial metrics reveal a P/E ratio of 15.16, a price-to-sales ratio of 3.71, and an earnings yield of approximately 6.60%.
Bank of America Corporation, listed on the NYSE:BAC, is a leading financial institution offering a wide range of banking and financial services. It competes with other major banks like JPMorgan Chase and Wells Fargo. As it prepares to release its fourth-quarter earnings on January 16, 2025, analysts are keenly watching its performance metrics.
Wall Street analysts estimate Bank of America’s earnings per share (EPS) to be $0.78, with projected revenue of approximately $25.1 billion. Barclays senior equity analyst, Jason Goldberg, highlighted on ‘Squawk Box’ that the banking industry is under scrutiny as stakeholders assess the health and future prospects of big banks. Bank of America has shown strong performance in 2024, driven by its wealth management and investment banking divisions.
The bank is expected to report a net interest income of $14.18 billion for the final quarter of 2024, with total revenue projected at $24.95 billion, indicating year-over-year growth. Analysts are optimistic, with 11 out of 12 tracked by Visible Alpha rating the stock as a “buy” or equivalent. The average price target is approximately $52, suggesting a potential 16% increase from its recent closing price.
Bank of America’s financial metrics provide insights into its valuation and operational efficiency. It has a price-to-earnings (P/E) ratio of 15.16, showing the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is 3.71, and the enterprise value to sales ratio is 4.14, reflecting its market value relative to sales and revenue.
The bank’s earnings yield is approximately 6.60%, indicating the return on investment. With a debt-to-equity ratio of 1.13, Bank of America uses a moderate level of debt to finance its assets. Its current ratio of 6.24 suggests strong liquidity, demonstrating its ability to cover short-term liabilities effectively.
