Nomura’s Earnings Insights: Bank of America Corp (BAC), Intel Corporation (INTC)

As the earnings season has just kicked off, we are now hailing some of the first reporters. Let’s take a look and see what Nomura analysts have to say about Bank of America Corp (NYSE:BAC) and Intel Corporation (NASDAQ:INTC).

Bank of America Corp

Nomura analyst Steven Chubak reiterated a Buy rating on shares of Bank of America, with a price target of $19, after the financial giant reported an in-line fourth-quarter results driven by good balance sheet/core net interest income growth and in-line fees and expenses.

Chubak commented, “BAC reported 4Q15 EPS of $0.28, compared with our forecast of $0.24 and consensus of $0.27. Adjusting for specials, core EPS came in closer to $0.33 vs. our $0.30 forecast (it is not clear to what extent these adjustments were included in consensus). Versus our estimate, the beat was primarily driven by higher NII, modestly higher trading revenues, and a lower tax rate, partially offset by lower IBD revenues. Given stronger-than-expected NII / loan growth and continued expense progress, with the shares trading at ~95% TBV, we expect BACK to react positively on the result.”

According to data compiled by TipRanks, a site that tracks and ranks analysts on their predictions, analyst Steven Chubak has a yearly average return of -0.3% and a 36% success rate. Chubak has a -2.5% average return when recommending BAC, and is ranked #2047 out of 3580 analysts.

Intel Corporation

Nomura analyst Romit Shah reiterated a Buy rating on shares of Intel, while reducing the price target to $38 (from $42), after the chip maker posted fourth-quarter and full-year results after the market close on Thursday.

Shah wrote, “There were several positive takeaways from Q4 results, in our view: i) Intel under-shipped PC end-demand (NB, DT, tablets) for the third consecutive period; ii) client asps continued to improve due to a record mix of Core shipments; iii) and seemingly conservative gross margin guidance.”

However, “Friday’s share performance suggests that the Data Center Group matters most. DCG revenues increased 4% qoq, missing our estimate of 5% growth. The company indicated that asp growth of -1% was negatively impacted primarily by higher Networking shipments.”

“We are lowering our estimates from $0.52 to $0.50 for Q1, from $2.51 to $2.45 in CY16, while holding 2017 largely unchanged ($2.80). We are also establishing 2018 eps of $3.09,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Romit Shah has a yearly average return of 6.8% and a 54% success rate. Shah has a -12% average return when recommending INTC, and is ranked #332 out of 3580 analysts.

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