BofA CEO Warns Q3 Trading Flat, IB Fees Below Consensus; Stock Slides 5%
BAC sits 28% above its 52-week low of $46.115 on elevated volume (2.0× avg).
Summary
CEO Brian Moynihan told an industry conference Monday that Q3 sales and trading revenue will be roughly flat year-over-year, and investment banking fees will land between $1.6B and $1.8B — well below the ~$2B consensus and implying a >10% decline. The stock fell 5.14% Monday and another 0.77% in Tuesday premarket. This is the first concrete guidance from management for Q3 and directly contradicts the momentum from Q2's 34% earnings beat. The weakness is company-specific, not just macro, since S&P futures were only down 0.3%. Watch for any further commentary from the conference and the Q3 earnings release in October.
At the time of this announcement, BAC was trading at $59.06 on NYSE in the Finance sector, with a market capitalization of approximately $415.9B. The 52-week trading range was $46.12 to $65.23. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.