Replies to post #11736 on Bank of America Corp (BAC)

[altruism]

I was a little surprised to see the gap up...
Bank of America Corporation today reported net income of $653 million, or $0.03 per diluted share, for the first quarter of 2012. Revenue, net of interest expense, on a fully taxable-equivalent (FTE)1 basis was $22.5 billion, including negative valuation adjustments related to changes in the company’s credit spreads of $4.8 billion pretax, or $0.28 a share.

The results compare to net income of $2.0 billion, or $0.17 per diluted share, in the year-ago quarter on revenue of $27.1 billion when the company reported negative valuation adjustments of $943 million, or $0.06 per share. Excluding the valuation adjustments from both periods, revenue was down 3 percent in the first quarter of 2012 to $27.3 billion2.

[altruism]

Gonna post the full WSJ article... this is why thinking BAC is gonna 15 - 20 - 30 anytime soon is premature as it's gonna take years to rid itself of the countrywide fiasco... playing this stock between $7 - 10 for the next couple years is the most likely scenario...

DOW JONES NEWSWIRES

Bank of America Corp.'s (BAC) first-quarter profit slumped 68% as massive debt-related charges skewed results from the banking giant.

The bank has spent much of the last year working to slim down and rid itself of the heavy overhang of the U.S. financial crisis. Now, with many of those efforts in action, investors are increasingly looking for signs of earnings power at the giant U.S. bank.

Bank of America reported a profit of $653 million, compared with a year-earlier profit of $2.05 billion. Per-share earnings, which reflect the payment of preferred dividends, fell to 3 cents from 17 cents a year ago. The latest quarter included, among other items, a $4.8 billion pre-tax hit tied to changes in the value of the bank's debt.

Total revenue declined 17% to $22.28 billion. Analysts polled by Thomson Reuters expected earnings of 12 cents a share on $22.51 billion in revenue.

The bank's profit was again helped by reduced provisions for loan losses as credit quality continued to improve. Credit-loss provisions totaled $2.42 billion in the first quarter, compared with $3.81 billion a year earlier and $2.93 billion in the fourth quarter.

Shares were recently up 4.6% to $9.34 premarket. Through the Wednesday close, the stock has surged 60% since the beginning of the year.