Q2 Preview: Bank of America (BAC) Set Up for Another 'Beat', But Bigger Questions Loom

Shares of Bank of America (NYSE: BAC) are trading up 1 percent ahead of second quarter earnings due ahead of the opening bell tomorrow, July 18th.

Currently, the Street is looking for EPS of $0.14 on revenues of $22.87 billion. EPS estimates have come down 12.3 percent over the past four weeks. Over the past four quarters, the company has beat EPS estimates three out of four times, with an average beat rate of 94%. Following earnings, shares have moved approx. 4 percent higher over the past four quarters.

Data from Bloomberg has 12 analysts at Buy on BofA, 22 with a Neutral, and five at Sell. The analyst price target average is $9.46, ranging from $5.50 to $14.

Analyst Comments

• JPMorgan recently adjusted EPS estimates to reflect a change in timing of a deferred tax asset write down from 2Q to 3Q and to account for an increase in diluted share count related to outstanding warrants due to higher expected earnings. As a result, their 2Q EPS estimate increases to $0.23 from $0.17, but FY 2012 and 2013 EPS estimates are reduced to $0.58 and $1.13 from $0.61 and $1.15, respectively.
  
  
• Deutsche Bank expect 2Q EPS of $0.15 vs. consensus of $0.16 and 1Q EPS of $0.31 on the same basis. "We expect weak core revenue trends (i.e. ex-CVA/DVA) given lower capital markets revenues and net interest income (due in part to a negative impact from premium amortization/hedging from lower rates). However, this should be partly offset by lower expenses q/q."

Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release.

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