Ouch and Ouch

Posted by Ray on October 16, 2009 under Main | Be the First to Comment

GE and Bank of America released their earnings this morning and what can I say. GE missed revenue estimates which were already reduced dramatically, perhaps due to their off balance sheet items that they do not have to report, some $40 billion in garbage debt. But BoA was just bad across the board and this is a direct representation of where the country stands as it has the most exposure to the consumer through retail banking, retail brokerage, and mortgages.

According to CNBC.com estimates for BoA were for a loss of $.06 a share on revenue of $27.7B. The firm reported a loss of $.26 a share with revenue of $26.04 billion, a double loss. Of course, the site just changed the estimate to say the estimated loss was supposed to be $.20 a share, but that literally just changed. So, either it was a huge miss or just your run of the mill 30% miss, I expect nothing more from CNBC but to put out the most accurate information at all times to spin report news in the best possible light. Look for yourself below. Even Bloomberg had an average expected loss of $.12 per share.

Here is what was on their website last night:

Here is what they changed BAC EPS estimates to at 8:00 AM:

I know, why do I watch them, as I told a reader who I talk to off and on with, I need something to complain about! Anyhow, this is clearly not good news for the markets nor is it good news for the economy as it shows we are struggling. BoA is also reserving another $11B for future loan losses, so the direction of the economy, from all the bank earnings so far, shows further credit deterioration and is a very bearish outlook. This cannot be positive for spending moving forward if banks are reserving for more loan losses since losses usually means people are not or cannot pay their bills. I know, I am crazy.