Bank of America (BAC) is scheduled to announce its results for the second quarter of 2025 on Wednesday, July 16. The stock has gained about 8% year-to-date, driven by strong trading performance, higher net interest income, and improved investor sentiment around easing regulations and solid stress-test results. According to Main Street Data, BAC’s Consumer Banking segment brought in $10.49 billion in revenue in Q1. It will be worth watching if this segment continues to show strength in the second quarter.

Wall Street analysts expect the company to report earnings per share of $0.86, representing a 3.6% increase year-over-year. Meanwhile, revenues are expected to increase by 5% from the year-ago quarter to $26.75 billion, according to data from the TipRanks Forecast page.

It’s important to note that BAC has an impressive track record with earnings, having exceeded EPS estimates in seven out of the past nine consecutive quarters.

Ahead of BAC’s Q2 earnings report, HSBC analyst Saul Martinez downgraded the stock to Hold from Buy after a strong rally in bank stocks.

He believes the market has not fully priced in risks such as slower economic growth, macro uncertainty, and possible rate cuts through 2025 and 2026. At the same time, Martinez said the positives, such as stable credit trends, a pickup in investment banking, and a supportive regulatory environment, are already reflected in the stock. Given the limited upside, he now sees a more balanced risk-reward outlook for BAC.

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.

Indeed, it currently says that options traders are expecting about a 4.26% move in either direction in Bank of America stock in reaction to Q2 results.

Overall, Bank of America stock scores a Strong Buy consensus rating based on 18 Buys and three Holds. The average BAC stock price target of $51.20 implies 9.57% upside potential.

Read more analyst ratings on BAC stock

Disclaimer & DisclosureReport an Issue