For those of you keeping score at home, Bank of America reported it’s 2014 Q1 earnings, which showed an interesting picture of beating earnings estimates while also reporting a big loss. BofA beat Wall Street Q1 2014 earnings with an earnings per share of $.35 and revenue of $22.8 billion. However, the bank also reported a loss of $276 million. To make matters worse BofA took a $6 billion litigation expense hit which will cost shareholders $.40 per share AFTER taxes.
As you can see it’s a pretty noisy report issued by BofA. Wall Street predicted earnings per share to come in at $.30 and $22.1 billion of revenue. However, despite outdoing Wall Street predictions, BofA still has plenty of fish to fry. According to CEO Bryan Moynihan, “”The cost of resolving more of our mortgage issues hurt our earnings this quarter,” said Chief Executive Officer Brian Moynihan. “But the earnings power of our business and customer strategy generated solid results and we continued to return excess capital to our shareholders.”
This is the second quarter in which BofA has outperformed Wall Street expectations under still horrid market conditions. We will continue monitor the financial reporting of major banks to keep our finger on the pulse of the market.
Photo by Scott Olson/Getty Images
