| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2016 > News item |
Morning Commentary: Bank of America, Wells Fargo report quarterly results; Breitburn declines
By Stephanie N. Rotondo
Seattle, April 14 – The preferred stock market was slightly higher in early Thursday trading as Bank of America Corp. and Wells Fargo & Co. released their latest quarterly results.
The Wells Fargo Hybrid and Preferred Securities index was up 2 basis points at mid-morning.
For its part, BofA reported net income of $2.22 billion, or 21 cents per share, on revenue of $20.9 billion. Analysts polled by Thomson Reuters had expected EPS of 20 cents on revenue of $20.3 billion.
Credit loss provision rose to $997 million, a gain of 30% year over year. The gain was attributed mostly to issues in the energy arena.
On the heels of the results, the 6.2% series CC noncumulative preferreds (NYSE: BACPC) were up 6 cents at $26.42.
Wells Fargo meantime reported net income of $5.46 billion, or 99 cents per share, on revenue of $22.2 billion. Analysts polled by S&P Global Market Intelligence had predicted EPS of 98 cents on revenue of $21.5 billion.
Credit loss provisions jumped to $1.09 billion from $608 million, also because of stress in the energy sector.
Though Wells Fargo beat expectations, its 5.7% series W class A noncumulative preferreds (NYSE: WFCPW) were trading off 2 cents early in the day to $26.18.
Away from earnings, Breitburn Energy Partners LP announced that it was suspending distributions on its 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP), as well as on its 8% series B perpetual convertible units. The oil and gas MLP also noted that it would defer interest payments on its 7 7/8% notes due 2022 and 8 5/8% notes due 2020.
The news sent the series A units into a nosedive, falling $2.22, or 41.88%, to $3.08.
The company now enters a 30-day grace period before a default occurs.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.