Is Bank of America Corp a Buy After Its Latest Earnings Report?
Bank of America comfortably beat Wall Street's expectations. But does that make the stock a buy?
Overview
On Tuesday, July 14, Bank of America (NYSE:BAC) blew past Wall Street's expectations and delivered results for one of its strongest quarters in years.
Second-quarter revenue grew about $4.2 billion since last year (from $27.4 billion to $31.6 billion), a roughly 15% surge that beat Wall Street's estimate of $30.8 billion. Earnings, likewise, rose 34% to $1.21, a comfortable beat on analysts' estimate of about $1.13. Just as important was the bank's 17% return on average tangible common equity -- a key measure of the bank's profitability -- which is well within its target range of 16% to 18%.
Details
Indeed, every one of Bank of America's business segments reported double-digit net income growth, with total net income growing 27% to $9.1 billion. But does that strong performance make the bank stock a long-term buy today? Let's take a look.
Source
Originally published at www.fool.com.