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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Benny Baga who wrote (16624)	10/16/2000 4:06:01 PM
From: zuma_rk	Read Replies (1) \| Respond to of 20297

?????? Read the last sentence... cbs.marketwatch.com B of A lower after earnings report By Emily Church, CBS.MarketWatch.com Last Update: 3:56 PM ET Oct 16, 2000 NewsWatch Latest headlines NEW YORK (CBS.MW) -- Bank shares fell Monday in the wake of what one analyst termed a "dsappointing quarter" for Bank of America, the first of the large banks to post September quarter profits. The Phlx/KBW Bank Index ($BKX: news, msgs) was up 0.9 percent, shaking off earlier weakness while the S&P Bank Index ($BIX: news, msgs) was up 0.6 percent. Bank of America (BAC: news, msgs) bested the First Call consensus estimate for its operating income. Net income, however, dropped 15 percent over the year-ago. Shares were trading down $1.38 to $45.19. Revenue rose 3 percent over the year-ago amount, raising a red flag for analyst Richard Bove at Raymond James. "The bottom line is that the company isn't growing revenue fast enough to take care of the cost problems associated with bad loans and shrinking margins," Bove said. Those problems, he said, include a declining rate of core deposits, a the growing loan portfolio and the rise in non-performing assets. Non-performing assets were $4.4 billion, or 1.09 percent of loans in the quarter vs. 0.84 percent of loans last year, the bank said. The bank's executives indicated to analysts in the conference call that it's expecting non-performing assets to rise in the fourth quarter and likely in the first quarter as well, UBS Warburg analyst Diane Glossman told clients. However, net charge-offs were $435 million in the quarter, down from $460 million a year ago, "driven primarily by lower losses on loans to consumers," the bank said. Today on CBS MarketWatch Dow advances as Nasdaq slips Chevron to buy Texaco in $35.7 billion deal Intel shares slip ahead of quarterly report New disclosure rules will bring openness, volatility Silicon Stocks: Sector mixed ahead of earnings More top stories... CBS MarketWatch Columns Updated: 10/16/2000 2:28:38 PM ET The bank took a $257 million pre-tax charge related to auto-finance residual write-downs that analysts said was unexpected. Operating earnings were $2.18 billion, or $1.31 per share, a 7-percent increase over the year-ago period and ahead of the $1.29 average estimate from First Call. Net income, which includes a $346 million restructuring charge, was $1.83 billion, or $1.10 a share vs. $2.15 billion or $1.23 a share a year ago. "Bank of America in the third quarter faced the same head wind of higher interest rates and a slowing economy as other banks," said Hugh L. McColl Jr., chairman and chief executive officer, in a statement. Also of note: Equity investment gains rose 24 percent to $422 million, including venture capital gains of $224 million and strategic investment gains of $153 million, the bank said. The equity gains were seen offsetting the cost of writing down the auto lease residuals, analysts said. Glossman noted that gains included the bank's sale of its CheckFree (CKFR: news, msgs) position.