The shares of the multinational banking firm, Bank of America, in the stock market tumbled on Wednesday session as investors saw that the company’s fourth quarter revenue has missed analysts’ expectation in its earnings report released yesterday.
The Bank of America actually reported that its adjusted earnings per share for the previous quarter has ended up at 47 cents, beating economists’ expectations of 44 cents, but a throng of investors were quick to point out the firm’s adjusted revenue of $21.4 billion, short of meeting the forecast of $21.531.
With investors focusing on the lower revenue, Bank of America’s shares slumped by more than 2% to close at $31.18 per share. Despite the sharp decline, the company’s stocks remained 36% higher compared to its level in the previous year.
According to its CEO Brian Moynihan, the advancement in the company’s shares has been a product of their “investment in technology, client engagement, and in our own team.”
Last December, Bank of America granted its 145 000 employees of a whopping $1 000 bonus, which was made possible due to the passage of tax reform that cut corporate tax rate from 35% to just 21%.
Meanwhile, the firm’s net interest income jumped by more than 10% in the past three months to settle at $11.5 billion and is expected to register solid growth in 2018.