Bank of America reported a lower-than-expected first-quarter profit and its revenue fell, sending the No. 2 U.S. bank's shares down 3 percent before the bell on Wednesday.
Net income quadrupled to $2.62 billion, or 20 cents a share, from $653 million, or 3 cents a share a year earlier as expenses dropped and the bank set aside less money to cover bad loans. But total adjusted revenue fell 8.4 percent to $23.85 billion.
Analysts on average had expected Bank of America to earn 22 cents a share, according to Thomson Reuters I/B/E/S.
Bank of America Corp. (BAC) shares dropped 3.3 percent before the bell to $11.88.
Earnings in the year-earlier period were affected by a host of one-time items including a $4.8 billion charge related to the value of its debt.
Chief Executive Brian Moynihan has made progress in building capital and settling mortgage-related lawsuits since taking over in January 2010. But he is under pressure to show that the bank can produce higher earnings at a time of low interest rates, stricter regulations and volatile economic conditions.
Bank of America, the last of the big four U.S. banks to report results, has pledged to cut $8 billion in expenses by mid-2015 and has said it could reduce expenses in its division that handles delinquent mortgages by $1 billion by the end of 2013.
The bank showed signs of progress in these efforts in the quarter, with total expenses falling 5.2 percent to $18.15 billion.
As with other big banks this quarter, Bank of America results were also boosted by reduced credit losses as borrowers did a better job of making their payments. The bank's provision for loan losses fell 29.2 percent to $1.71 billion.
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Satellite radio has never been more popular. There are now 23.9 million subscribers after the parent company of Sirius and XM closed out 2012 with 2 million more accounts than it had when the year began.
However, Sirius XM lost its longstanding CEO late last year, and a media conglomerate has acquired a controlling stake in the satellite radio provider -- events that have triggered uncertainty.
Still, Sirius XM is a company that has been consistently profitable and generating growing amounts of revenue and free cash flow on its own. And, auto sales also remain strong: Those represent the largest source of new subscribers for Sirius XM, as most of its users tune in through car factory-installed receivers.
A few years ago, Nokia was the undisputed top dog in mobile phone handsets. The Finnish company was a global juggernaut at a time when consumers were swapping beepers -- remember those? -- for wireless phones.
But the market has evolved repeatedly since then. Cheaper feature phones have been replaced by smartphones that run apps and surf the Web, and Nokia has been slow to embrace the platforms that matter. Obviously it couldn't put out an iPhone, but it also wasn't able to match Samsung's early push into Android devices that are now globally popular.
Nokia is accepting billions to back Microsoft's fledgling Windows Phone mobile operating system, but the stock has been stuck in the single digits for more than two years.
It isn't easy being a regional telco, offering up landlines, Internet, and cable TV to rural markets.
A big draw for investors in Frontier Communications is its meaty dividend payout. Even after slashing its quarterly rate from $0.1875 a share to $0.10 a share last year, the stock's still yielding 10 percent. The large dividend is significant, since shorts actually have to cover that when it gets paid out.
Analysts see revenue and profitability continuing to decline here, and pessimists are holding out for more dividend cuts in the future.
The old "Intel inside" ads came out at a time when PC sales were booming. Manufacturers were hopping on Intel microprocessors to power desktops and laptops, only turning to smaller rival Advanced Micro Devices (AMD) when they wanted to show Intel that they weren't entirely dependent on the chip giant.
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The poster child for the "too big to fail" banking giants is starting to bounce back.
Bank of America stock hit a fresh 52-week high this month, and regulators finally eased up on the bank after it cleared its stress test. That freed Bank of America to return more of its money to shareholders beyond its token quarterly dividend of $0.01 a share, and the financial services giant's first move was to declare a huge share repurchase program.
As long as the housing market holds up and the general state of corporate America makes lending money to companies a smart bet, Bank of America will do just fine. Shorts, naturally, don't see it that way at all.