Bank of America Corporation (BAC) is a bank holding company, and a financial holding company. BAC is currently trading around $16.53 in a 52 week range of $13.80 – 18.03. The company’s stock has been outperforming the market this year with shares increasing 6.16% year to date. Shares have gained nearly 5.5% so far in 2014 through Monday, but are 9% below their 52-week high of $18.03.
The second-biggest U.S. bank is expected to report a third-quarter loss of 9 cents a share, compared to a profit of 20 cents a share in the same quarter the year before, according to analysts surveyed by FactSet. The loss includes an expected 43 cents charge tied to the bank’s $16 billion mortgage settlement with the government in August. BAC is also expected to report a decline in revenue. The consensus estimate is for revenue of $21.34 billion for the quarter, compared to $21.53 billion a year ago. BAC will report tomorrow before the bell, with a conference call following at 8:30AM EDT.
Looking at the company’s earnings history, BAC has rallied 3 of the last 8 quarters, for the 3 quarters in succession spanning from July 2013 through January 2014. On average, the stock has moved about 2.5% in the last 8 quarters. This earnings season, market makers are implying about a +- 3.6% move in the stock for the October 17 weekly option chain. BAC is trading above the Ichimoku Cloud on the daily chart, but it is difficult to determine how investors will react to the earnings release. Shares have sold off from the beginning of October, where the stock was trading about $.70 off its 52 week high at $17.29.