Bank of America will release their second quarter earnings report on Monday, which could be bonus for financial ETFs with the heaviest exposure to the bank, such as iShares U.S. Financial Services ETF
Financials Equities (NYSEArca: IYG), Financial Select Sector SPDR Fund Financials Equities (NYSEArca: XLF) and Invesco KBW Bank ETF Financials Equities (NASDAQ: KBWB).
Consensus estimates are pegged at about 57 cents per share, which represents a decrease of a nickel compared to last quarter. In terms of expected revenue, analysts are expecting a range of $21.74 billion and $23.05 billion versus $23.1 billion in the first quarter–all based on an analyst poll by Yahoo! Finance.
If BofA exceeds these estimates, it will be a welcome rebound for all three ETFs after closing in the red during Friday’s trading session–IYG was down 0.73%, XLF was down 0.48% and KBWB was down 0.57%. Much of that blame can be directed towards Wells Fargo who posted losses in their second quarter earnings report, sending their shares tumbling 1.20%.