Embattled banking giant Bank of America Corp (
) on Tuesday said it swung to a third quarter profit, driven by a
huge one-time gain tied to revaluation of its own debt.
The Charlotte, NC-based company reported third quarter net
income of $5.89 billion, or 56 cents per share, compared with a net
loss of $7.65 billion or -77 cents per share, in the year-ago
The company's latest results were littered with one-time
adjustments and gains, and thus were not comparable with Wall
Street analysts' average estimate for a 20 cent per-share
BAC noted the following one-time items in its report:
- A $4.5 billion gain for positive fair value adjustments on
- A $3.6 billion pretax gain from the recent sale of its stake
in China Construction Bank,
- A $1.7 billion pretax gain in trading Debit Valuation
- A $2.2 billion pretax loss of stemming from private equity
and strategic investments.
Total revenues, net of interest expenses, rose 6.5% from last
year to $28.45 billion, while analysts had expected $25.95 billion
in revenue for the quarter.
Bank of America shares rose 12 cents, or +2%, in premarket
The Bottom Line
Shares of Bank Of America (
) have a .66% dividend yield, based on last night's closing stock
price of $6.03. The stock has technical support in the $5 price
area. If the shares can firm up, we see overhead resistance around
the $8 price level.
Bank of America Corp (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 2.6 out of 5 stars.
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