Bank Of America Q1 Earnings Preview: Can Warren Buffett's Favorite Continue Beating Estimates?

Bank of America BAC, one of the larger companies reporting financial results this week, could provide a barometer for the health of the financial sector when it reports before the market opens on Tuesday.

Earnings Estimates: Analysts expect Bank of America to report first-quarter revenue of $26.99 billion, up from $25.98 billion in last year's first quarter according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in four straight quarters and nine of the last 10 quarters overall.

Analysts expect Bank of America to report first-quarter earnings per share of 82 cents, down from 83 cents in last year's first quarter. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.

Key Items to Watch: The earnings report comes with several big banks reporting this week and large financial companies Morgan Stanley, Wells Fargo and JPMorgan Chase reporting quarterly results last week.

"This week the slate of reports grows louder but one common factor may persist – lack of guidance," Freedom Capital Markets chief global strategist Jay Woods said in a weekly newsletter. "Last week, during the three earnings call of the banks mentioned above, the word or a variation of the word ‘uncertain' was said 40 times!"

Woods said he expects the surge to continue this week, given the uncertainty of President Donald Trump's tariff policies.

Bank of America beat estimates in the fourth quarter with revenue up 15% year-over-year and the company crediting higher asset management, investment banking fees and sales and trading revenue leading the growth.

As one of the larger banks, Bank of America’s quarterly results and guidance could provide a barometer for the sector and the overall macroeconomic environment.

The SPDR Select Sector Fund—Financial (NYSE:XLF) could be volatile this week, with several financial companies reporting, including Bank of America, one of the five largest holdings of the ETF.

Berkshire Hathaway Inc. BRK BRK stock could also be impacted by Bank of America’s results. The Warren Buffett-led conglomerate counts Bank of America as its fourth largest stock investment at 9.3%, trailing only Apple (23.0%), American Express (14.5%) and Coca-Cola (10.8%).

Buffett has trimmed his Bank of America stake in recent quarters, but it remains one of the legendary investor’s largest holdings.

Analysts have been cutting their price targets on Bank of America ahead of the report. Here are recent analyst ratings on Bank of America.

Morgan Stanley: Upgraded rating from Equal-Weight to Overweight, lowered price target from $56 to $47
Truist: Maintained Buy rating, lowered price target from $53 to $50
JPMorgan: Maintained Overweight rating, lowered price target from $49.50 to $43.50
Evercore ISI: Maintained Outperform rating, lowered price target from $51 to $48

BAC Price Action: Bank of America stock is up 1.6% to $36.53 on Monday versus a 52-week trading range of $33.06 to $48.08. Its stock is down 17.5% year-to-date in 2025 and up 1.6% over the last year.

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