BofA Bond Trading Slumps but Net Soars, Wells Fargo Net Falls on Legal Costs

Mukesh Buch
13 Oct, 2017
New York City

BofA reported stronger than expected results. PNC Financial net jumped 14%. Wells Fargo net tumbled 19% after legal costs. Applied Optoelectronics tumbled on lowered outlook. J B Hunt Transport net plunged 8% while revenues soared 9%.

[R]12:25 PM New York – BofA reported stronger than expected results. PNC Financial net jumped 14%. Wells Fargo net tumbled 19% after legal costs. Applied Optoelectronics tumbled on lowered outlook. J B Hunt Transport net plunged 8% while revenues soared 9%.[/R]

Tollbooth Index advanced 42.14 or 0.3% to 12,884.88.

Earnings Review

Bank of America Corp ((BAC)) increased 1.1% or 29 cents to $25.73 after the banking and financial services provider reported revenues in the third-quarter ending in September rose 1% from a year ago to $21.8 billion.

Net income in the quarter soared 13.3% to $5.1 billion or 48 cents per diluted share from $4.5 billion or 41 cents in the same quarter last year. The bank reported record quarterly profit in more than a decade.

The bank said total average deposit balances jumped 4% to $1.27 trillion and average loan balances in business segments advanced 6% to $842 billion and revenues in consumer banking business surged 10% to $8.8 billion from a year ago period, driven by higher interests rates.

Applied Optoelectronics Inc ((AAOI)) tumbled 21.7% or $12.77 to $46.07 after the fiber-optic networking products provider estimated third-quarter revenues between $88 million and $89 million from the earlier estimated range of $107 million to $115 million.

The tech company estimated net income in the range of $18.6 million to $19.6 million compared to the previously forecasted range of $26.6 million to $29.4 million.

J B Hunt Transport Services Inc ((JBHT)) slumped 2.4% or $2.56 to $105.79 after the transportation and logistics services provider said revenues in the third-quarter ending in September soared 9% from a year ago to $1.8 billion.

Net income in the quarter plunged 8.2% to $100.4 million or 91 cents per diluted share from $109.4 million or 97 cents in the same quarter last year.

PNC Financial Services Group Inc ((PNC)) fell 59 cents to $134.68 after the diversified financial services provider reported revenues in the third-quarter ending in September grew 2% from a year ago to $4.1 billion.

Net income in the quarter jumped 13.6% to $1.05 billion or $2.16 per diluted share from $924 million or $1.84 in the same quarter last year.

The lender said as of September 30, total deposits in the quarter increased 1% to $260.7 billion and total loan in the quarter rose 1% to $221.1 billion.

Wells Fargo & Co ((WFC)) declined 3.1% or $1.73 to $53.46 after the banking and diversified financial services provider reported revenues in the third-quarter ending in September fell 1.8% from a year ago to $21.9 billion.

Net income in the quarter tumbled 19% to $4.6 billion or 84 cents per diluted share from $5.6 billion or $1.03 in the same quarter last year.

The lender said average total deposits increased 0.7% to $1.3 trillion and average total loan fell 1% to 951.9 billion. Net interest income jumped 4% to $12.5 billion.