Bank of America Set to Report Q2 Earnings: Analyst Expectations and Market Outlook

Bank of America is set to report Q2 earnings on July 16, with analysts expecting EPS of $0.86, a 3.6% YoY increase, and revenues of $26.75 billion, a 46% decline from the year-ago quarter. The company has exceeded EPS estimates in seven out of the past nine consecutive quarters. Options traders anticipate a 4.26% move in either direction in reaction to Q2 results. BAC stock scores a Strong Buy consensus rating with 18 Buys and three Holds.

Bank of America (BAC) is set to release its second-quarter (Q2) 2025 earnings on Wednesday, July 16. Analysts are expecting earnings per share (EPS) of $0.86, representing a 3.6% year-over-year (YoY) increase [1]. However, revenues are projected to decrease by 46% from the year-ago quarter to $26.75 billion [2]. This mixed outlook reflects ongoing weakness in the bank’s investment banking unit and a challenging economic environment.

BAC has consistently exceeded EPS estimates in seven out of the past nine consecutive quarters, demonstrating its resilience in the face of economic headwinds. The company's consumer banking segment brought in $10.49 billion in revenue during the first quarter, suggesting continued strength in this area [1]. Despite the projected revenue decline, the upward revision in EPS estimates indicates growing confidence in BAC's ability to navigate rising interest rates and moderate loan demand.

Options traders anticipate a 4.26% move in either direction in BAC stock in reaction to the Q2 results [1]. This suggests a significant level of market anticipation and potential volatility around the earnings announcement. The stock currently scores a Strong Buy consensus rating based on 18 Buys and three Holds, with an average price target of $51.20, implying 9.57% upside potential [1].

Analysts have offered varying views ahead of BAC's Q2 earnings. HSBC analyst Saul Martinez downgraded the stock to Hold from Buy, citing risks such as slower economic growth and possible rate cuts [1]. RBC Capital analyst Gerard Cassidy maintained an Outperform rating but increased the price target to $53 [2]. Citigroup analyst Keith Horowitz also maintained a Buy rating, raising the price target to $54 [2]. Goldman Sachs analyst Richard Ramsden maintained a Buy rating with a price target of $52 [2].

Investors should closely monitor the earnings report for signs of resilience in the face of economic uncertainty. Key metrics to watch include nonperforming loans (NPLs), which are projected to increase by 17% year-over-year to $6.66 billion [3]. Additionally, the bank's book value per share is expected to grow to $36.85, reflecting disciplined capital management and higher interest rates [3].

In conclusion, BAC's Q2 2025 earnings report will provide insight into the bank's ability to navigate a challenging economic environment. While the upward revision in EPS estimates suggests operational resilience, the projected revenue decline and rising NPLs indicate ongoing headwinds. Investors should approach the earnings announcement with a balanced risk-reward outlook, prioritizing selective entry points post-earnings.

References:
[1] https://www.tipranks.com/news/bank-of-america-bac-is-about-to-report-q2-earnings-this-week-here-is-what-to-expect
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46316775/bank-of-america-likely-to-report-higher-q2-earnings-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call
[3] https://www.ainvest.com/news/bank-america-q2-2025-earnings-tale-resilience-caution-2507/