Bank of America reported 3Q15 earnings that beat on both the top and bottom line. The outperformance (beating estimates) we’ve seen so far in the earnings numbers across the banking sector are based on forecasts which have been downgraded, or set a relatively low target benchmark .
Nevertheless, we’ve seen nothing so far to suggest that S&P500 average EPS will not meet or exceed the required $30 – $32 per share to support current market valuations.
Bank of America (BAC.NYS) posted earnings of $0.42 per share on revenue of $4.45b, which represented 6.6% gain on the same time last year. ROE dropped to 7.3% which is low by industry comparisons.