![]()
| As of Friday, November 6th: |
As of October 1st, the earnings growth rate was at -24.8%.Of the 440 S&P 500 companies who have reported Q3, 80% beat estimates, 6% were in-line, and 14% were below estimates. The blended earnings growth rate for the S&P 500 for Q3 2009 is currently at -14.8%. (Data provided by Thomson Reuters)
LATEST EARNINGS RESULTS
- US Will Borrow Less as Banks Pay Back Funds: Geithner
- Wal-Mart Holiday Forecast Light, Profit Beats
- US Mortgage Refinancing Up; Buying Demand Sinks
- Kohl's Profit Higher than Expected, Same Store Sales Up
- United Tech to Buy GE Security Unit for $1.82 Billion
- Gold Hits $1,122, Barrick Chief Says Selloff Possible
- Wall Street Pay Is Often too High: Bill Gates
- Morgan Stanley Gets Aggressive in Luring Brokers
- Foreclosures Fall Again But Improvement Likely Fleeting
- Warren Buffett Ranked #14 On Forbes 'Most Powerful People' List
- What to Expect From Disney Earnings?
- HP's Shot Across Cisco's Bow
- USC Football Blog Leads All-Access Space
- Clowning Around At Work
- Ahead of Earnings Disney Restructures Studio
- Nov. 11: Unusual Volume Leaders
- 3 'Clear Sailing' Mid-Caps For Investors: Strategist
- Intimate Apparel Sales Heating Up: Maidenform CEO
MOST SHARED
- How the Droid and Google Threaten the GPS Makers
- Wal-Mart Holiday Forecast Light, Profit Beats
- CNN Anchor Lou Dobbs Says He is Leaving Network
- Rising Jobless Biggest Threat to World Trade: WTO
- HPQ to Acquire 3Com
- Shopping for Answers
- Highest State Foreclosure Rates
- Pricier Beer Helps AB InBev Operating Profit
- Obama Most Powerful Person in World: Forbes
- APEC Pledges to Back 'Market-Oriented' Currencies
Bank of America's quarterly profit fell a much larger-than-expected 32 percent, hurt by mounting credit losses and poor trading results in its investment banking unit.
![]() |
Oliver Quillia for cnbc.com Bank of America reported that quarterly profit fell 32 percent. |
The news sent stocks lower and Treasury prices higher on expectations that slowing activity might prompt the Federal Reserve to cut interest rates.
Bank of America shares [BAC
Loading...
()
] fell sharply.
"It was a very disappointing number," said Michael Mullaney, who helps invest $10 billion at Fiduciary Trust in Boston and owns the bank's shares.
"We knew the credit situation was going to be bad, but this was worse than expected," he said. "What causes us concern is the increase in reserves doesn't appear aggressive, and the
bank may need to reserve more in the future, which hits earnings. The real surprise was investment banking"
Bank of America's third-quarter net income dropped to $3.7 billion, or 82 cents per share, from $5.42 billion, or $1.18 a share, a year earlier.
Excluding items, profit was 84 cents per share, according to Reuters Estimates, below the analysts' average forecast of $1.06.
Revenue fell 12 percent to $15.93 billion, the Charlotte, North Carolina-based bank said. Analysts on average expected $18.01 billion.
CEO Disappointed
"While the significant dislocations in the capital markets have hurt most participants, we are still very disappointed in our third-quarter performance," Chief Executive Kenneth Lewis said in a statement.
Bank of America joined Citigroup [C
Loading...
()
], JPMorgan Chase [JPM
Loading...
()
] and other banks in reporting losses related to leveraged loans, mortgages, consumer credit, or a combination.
Quarterly profit fell 57 percent to $2.38 billion at Citigroup, and rose 2 percent to $3.37 billion at JPMorgan.
Bank of America results were a surprise given that its investment bank is smaller, relative to the company's size, than Citigroup's or JPMorgan's, and because the bank is not
involved in some riskier markets, including subprime mortgage lending.
Nevertheless, the bank generates a greater portion of its business domestically, leaving it more exposed to declining economic conditions.
More Credit Losses
Bank of America said it set aside $2.03 billion for credit losses, up more than 73 percent from a year earlier, and nonperforming assets doubled to $3.37 billion. It cited weakened housing conditions for some of the increases.
Corporate and investment banking profit sank 93 percent to $100 million from $1.43 billion, hurt by $717 million of trading and sales losses, $247 million of write-downs for leveraged and other loans, and a $527 million loss related to structured products, including mortgage debt. Revenue tumbled 44 percent.
Profit from consumer and small-business banking, the bank's main business, fell 16 percent to $2.45 billion.
Lending income was little changed at $8.62 billion, as net interest margin fell to 2.61 percent from 2.73 percent a year earlier, though it rose from 2.59 percent in the second quarter.
Consumer and business banking profit may rise in future quarters following the bank's $21 billion purchase on Oct. 1 of ABN AMRO Holding NV's LaSalle Bank.
Wealth and investment management profit rose 17 percent to $599 million, helped by the $3.3 billion purchase three months ago of Charles Schwab Corp's US Trust private banking
business.
The bank ended the quarter with $1.58 trillion of assets.
As of Wednesday's close, Bank of America shares had fallen 6 percent this year, compared with a 12 percent drop in the Philadelphia KBW Bank Index.
- Kohl's Profit Higher than Expected, Same Store Sales Up
Department store operator Kohl's reported a larger-than-expected quarterly profit on Thursday, helped by inventory controls and sales of brands it offers exclusively.
- Cost Cuts Help BT to Raise Full-Year Guidance
Britain's BT Group increased its revenue and dividend forecast for the full year on Thursday after stringent cost cuts helped the former telecoms monopoly to beat second quarter core earnings expectations.
- Applied Materials Profit, Sales Top Wall Street Forecasts
Applied Materials shares rose in after-hours trading after the company reported earnings and revenue that beat analysts' expectations, and said it planned to cut jobs globally.
- Kohl's Profit Higher than Expected, Same Store Sales Up
- Macy's Loss Beats Estimates, But Shares Fall on Outlook
Macy's reported a narrower than expected loss in its third quarter, but shares fell as its forecast for the holiday season fell short.
- Macy's Loss Beats Estimates, But Shares Fall on Outlook
- Vodafone Extends Cost-Cutting Scheme, Hits Targets
- Tyco International Profit Falls Less Than Expected
- EA Profit Beats Street, Announces Job Cuts
- Priceline Crushes Profit Forecasts; Shares Jump
- Berkshire Hathaway Says Net Income Tripled
- Sun Micro Sales Fall as Oracle Deal Remains Delayed
- AIG in the Black Again, Operating Profit Tops View
- Starbucks Profit Beats Forecasts; Shares Rise
- Fannie Mae Seeks $15 Billion in Aid After Posting Loss
- Nvidia Profit, Sales Top Wall Street's Forecast
- CBS Beats Expectations on Improved Ad Market
- Cisco CEO: Tech Sector Hit Bottom, Recovery Under Way
- Activision Posts Profit That Matches Street View
- Qualcomm Outlook Misses Street, Samsung Deal Helps








