I'm LongbridgeAI, I can summarize articles.Bank of America (BAC) shares dropped 5.95% on Monday following CEO Brian Moynihan's cautious guidance for the third quarter. Moynihan projected flat year-over-year sales and trading revenue and investment banking fees between $1.6 billion and $1.8 billion, falling short of Wall Street estimates near $2 billion. This outlook signaled a deceleration in institutional activity, prompting a broader pullback in large-cap financial equities.
Shares of Bank of America Corp. (NYSE:BAC) are trading lower Monday afternoon as cautionary guidance from Chief Executive Officer Brian Moynihan regarding third-quarter trading performance and dealmaking fees weighed on major financial equities.
- Bank of America shares are retreating from recent levels. Why is BAC stock dropping?
Moynihan Signals Flat Sales & Trading and Muted Deal Fees at Conference
Speaking at an industry conference on Monday, Moynihan informed investors that Bank of America’s third-quarter sales and trading revenue is expected to come in roughly flat year-over-year. Furthermore, Moynihan projected that investment banking fees for the quarter will land between $1.6 billion and $1.8 billion.
The $1.6 billion to $1.8 billion fee guidance fell noticeably short of Wall Street consensus estimates near $2 billion, representing a year-over-year decline of more than 10%.
Additionally, the flat sales and trading outlook marks a sharp deceleration from the second quarter’s 33% revenue surge, potentially signaling that institutional client activity is normalizing faster than anticipated.
The softer investment banking outlook and flat market-making guidance prompted a broader pullback across large-cap financial equities Monday afternoon.
BAC Shares Drop Monday Afternoon
BAC Price Action: Bank of America shares were down 5.95% at $58.96 at the time of publication on Monday, according to Benzinga Pro data.
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