BofA Revenues Rise Fails to Spark Stock; Goldman Sachs Bond Trading Plunges

Mukesh Buch
17 Jan, 2018
New York City

Bank of America profit declined 50% on one-time charges linked to latest tax reforms and missed revenue expectations. Charles Schwab revenues soared. CSX reported better-than-expected results. Goldman Sachs bond trading plunges 50%. US Bancorp profit jumped.

[R]12:05 PM New York City, New York – Bank of America profit declined 50% on one-time charges linked to latest tax reforms and missed revenue expectations. Charles Schwab revenues soared. CSX reported better-than-expected results. Goldman Sachs bond trading plunges 50%. US Bancorp profit jumped.[/R]

Tollbooth Index advanced 57.85 or 0.4% to 14,455.60.

Earnings Review

Bank of America Corp ((BAC)) dropped 2.5% or 77 cents to $30.47 after the banking services provider stated net interest income in the fourth-quarter ending in December advanced 2.3% from a year ago to $20.4 billion.

Net income in the quarter declined 50% to $2.1 billion or 20 cents per diluted share from $4.2 billion or 39 cents in the same quarter last year.

Charles Schwab Corp ((SCHW)) rose 12 cents to $55.65 after the investment banking and brokerage services provider reported net revenues in the fourth-quarter ending in December surged 14% from a year ago to $2.2 billion.

Net in the quarter jumped 14% to $597 million or 41 cents per diluted share from $522 million or 36 cents in the same quarter last year.

CSX Corporation ((CSX)) fell 26 cents to $57.88 after the rail transportation services provider reported revenues in the fourth-quarter ending in December declined 6% from a year ago to $2.9 billion.

Net income in the quarter soared to $4.1 billion or $4.62 per diluted share from $458 million or 49 cents in the same quarter last year.

CSX said higher income growth was driven by $3.6 billion net tax reform benefit resulting from the new Tax Cuts and Jobs Act of 2017.

Fastenal Company ((FAST)) declined 4.9% or $2.73 to $52.71 after the industrial and construction equipment wholesaler said revenues in the fourth-quarter ending in December soared 14.8% from a year ago to $1.1 billion.

Net income in the quarter surged 32.8% to $152.4 million or 53 cents per diluted share from $114.8 million or 40 cents in the same quarter last year.

Goldman Sachs Group Inc ((GS)) dropped 2.8% or $7.16 to $251.30 after the investment banking and brokerage services provider reported net revenues in the fourth-quarter ending in December jumped 4.9% from a year ago to $7.8 billion.

Net in the quarter swung to a loss of $2.1 billion or $5.51 per diluted share from profit of $2 billion or $5.02 in the same quarter last year.

Goldman Sachs said revenues in fixed income, currency and commodities execution tumbled 50% to $1 billion from the same period a year ago.

U.S. Bancorp ((USB)) slumped 2.9% or $1.65 to $55.52 after the financial services reported total revenues in the fourth-quarter ending in December advanced 3.7% from a year ago to $5.6 million.

Net income in the quarter jumped 15.8% to $1.7 billion or 97 cents per diluted share from $1.4 billion or 82 cents in the same quarter last year.