BankAmerica Shares Surge on Earnings Projections and Fleetwood Credit Acquisition

Strategic Insights -

BankAmerica, the nation's largest banking company, saw its stock price rise significantly on Thursday after Chairman and Chief Executive Officer Hugh L. McColl Jr. announced that the company would produce earnings gains of 25 percent this year. This news comes on the heels of First Union's announcement that its earnings will rise less than 10 percent in 1999, causing its stock to slip.

Key Takeaways:

  • BankAmerica's shares rose $2.75 to $64.87 1/2 on Thursday after Chairman Hugh L. McColl Jr. announced 25 percent earnings gains for the year.
  • In 1998, BankAmerica's operating income was $6.49 billion, or $3.64 a share.
  • The company also announced plans to acquire Fleetwood Credit from Associates First Capital, with the price remaining undisclosed.
  • The acquisition is expected to expand BankAmerica's lending capabilities, particularly in the recreational vehicle market.
  • First Union, the sixth-largest bank, saw its stock slip after announcing earnings would rise less than 10 percent in 1999.
  • Pfizer joined a list of companies announcing stock split news, with its board set to vote on a 3-for-1 stock split at its annual meeting on April 22.
  • GTE, a telecommunications provider, added $1.75 to $67.93 3/4 after reporting stronger-than-expected fourth-quarter results.
  • Kellogg, the food sector company, rose $2.87 1/2 to $42.06 1/4 ahead of its fourth-quarter earnings release.

Statistics:

  • BankAmerica's shares rose by $2.75 on Thursday.
  • The company's operating income in 1998 was $6.49 billion, or $3.64 a share.
  • First Union's stock slipped by 43 3/4 cents to $51.75.
  • Pfizer joined a list of companies announcing stock split news, with its board set to vote on a 3-for-1 stock split.
  • GTE's stock added $1.75 to $67.93 3/4 after reporting stronger-than-expected fourth-quarter results.
  • Kellogg's stock rose $2.87 1/2 to $42.06 1/4 ahead of its fourth-quarter earnings release.

Sources:

  • "BankAmerica's stock rises, Traders News"
  • "Pfizer's stock jumps after announcing plans for 3-for-1 stock split, Dow Jones News Service"
  • "GTE adds $1.75 on stronger-than-expected results, Bloomberg"