BofA Sticks to Pattern of Moving Deeper in the Red Following Earnings-Driven Pre-Market Declines

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Bank of America ( BAC ) is due with its Q4 results in the pre-market on Wednesday, Jan. 15. The stock has typically been a short favorite in its post-earnings trade over the last six years.

The stock has recorded an earnings-driven pre-market decline in 12 of the last 21 quarters we've tracked in our MT Newswires database. In nine of those 12 quarters, or 75% of the time, BAC added to its downside in the follow-on regular session and ended the day with a sharper decline than what it posted in the pre-market. Shorts are keyed up on a negative early move.

Even on an early day upside move BAC holds out prospects for shorts Wednesday as BAC has seen nine earnings-driven pre-market gains over the last 21 quarters, and in six of those nine events the stock reversed direction and either narrowed its gains or ended the follow-on regular session in the red.

Analysts polled by Capital IQ expect BAC to report a Q4 profit of $0.26 per share on revenue of $21.1 billion.

Here's the historical performance data:

On Oct. 16, 2013, BAC edged up 0.4% in pre-market action after topping Q3 expectations. The stock firmed higher in that day's regular session, ending up 2.2%.

On July 17, 2013, BAC gained 1% in pre-bell action on the back of Q2 results that beat the analyst consensus. The stock added to its upside between the bells, closing the regular session up 2.8%.

On April 17, 2013, BAC dropped 2.9% in pre-bell trade after missing Q1 earnings expectations. The stock added to its negative trade in the regular session, ending down 4.7%.

On Jan. 17, 2013, BAC declined 0.6% in pre-bell action after reporting mixed Q4 results. The stock was hit for deeper declines in the follow-on regular session, closing down 4.2%.

On Oct. 17, 2012, BAC dipped 0.6% in pre-market trade after posting a year-over-year decline in Q3 earnings. The stock narrowed its downside in that day's regular session, ending off 0.2%.

On July 18, 2012, BAC slipped 0.5% in pre-bell trade after coming in shy of Q2 revenue expectations. The stock dropped deeper in the red that day, closing down 4.9%.

On April 19, 2012, BAC gained 2.7% in pre-market trade after topping Q1 estimates. The stock reversed direction in the following regular session, closing down 1.6%.

On Jan. 19, 2012, BAC jumped 6.1% in pre-bell action after posting better-than-expected Q4 revenue and in-line earnings. The stock lost much of its upside in the regular session, ending up 2.3%.

On Oct. 18, the stock gained 3.6% in pre-market trading after reporting higher revenues. Shares jumped 10.1% during that day's regular session.

On July 19, 2011, BAC eked out a 0.2% advance in pre-bell trade after beating Q2 sales estimates but also posting a loss. The stock reversed direction in the following regular session, ending down 1.5%.

On April 15, 2011, BAC edged up 0.7% in pre-market action after missing earnings estimates. The stock lost its upside in that day's regular session, closing the day off 2.3%.

On Jan. 21, 2011, BAC slid 0.9% in pre-bell trade after missing Q4 estimates. The stock turned deeper in the red in that day's regular session, closing down 1.9%.

On Oct. 19, 2010, the stock fell 0.8% in pre-market action after an earnings beat but a revenue miss. Shares closed regular trading down 4.3%.

On July 16, 2010, BAC declined 4.8% in pre-bell trade after reporting a year-over-year decline in Q2 results. The stock was hit for sharper losses in that day's regular session, ending down 9.1%.

On April 16, 2010, the stock slipped 0.3% during pre-market trading after Q1 results declined compared to the year-ago quarter though beat Street expectations. The loss grew to 5.5% during regular trading later that day.

On Jan. 20, 2010, BAC slipped 0.5% during pre-market action after reporting a loss that missed the Street view, based on a TARP repayment. The stock improved to close up 1% during that day's regular session.

On Oct. 16, 2009, BAC slid 5.1% in pre-market trade after reporting a deeper-than-expected Q3 loss. The stock narrowed its decline slightly in that day's regular session, ending down 4.6%.

On July 17, 2009, BAC edged up 0.4% in pre-bell trade after beating earnings expectations. The stock lost that gain in the follow-on regular session, ending July 17 bell-to-bell action down 2.1%.

On April 20, 2009, BAC slumped 7.9% in pre-market action despite reporting results ahead of Street estimates. The stock added to its downside in that day's regular session, ending down a hefty 24.3%.

On Jan. 16, 2009, BAC jumped 7.5% ahead of the opening bell after reporting a swing to a loss and lower than expected revenue. The stock reversed direction in the Jan. 16 regular session, ending down 13.7%.

On Oct. 6, 2009, BAC was hit for a 9.6% decline in after-hours trade after reporting a year-over-year decline in earnings, cutting its dividend and announcing a stock sale. The stock was hammered lower in the Oct. 7 regular session, ending down 26%.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: BAC

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