Have you been eager to see how KeyCorp. (KEY) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Cleveland-based bank-oriented financial services company’s earnings release this morning:
In Line Earnings
KeyCorp came out with adjusted earnings per share of 26 cents, in line with the Zacks Consensus Estimate of 26 cents.
Rise in top line was offset by higher operating expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for KeyCorp depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate remained flat over the last 7 days.
Notably, KeyCorp has a decent earnings surprise history. Before posting in line results in Q1, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 6.01% in the trailing four quarters.
Revenue Came In Lower Than Expected
KeyCorp posted total revenues of $1.01 billion, which lagged the Zacks Consensus Estimate of $1.03 billion. However, it compared favorably with the year-ago figure of $1.0 billion.
Key Stats to Note:
KeyCorp exhibited disciplined capital management, with the announcement of new planned capital actions including a share repurchase program of up to $725 million and, subject to approval by the Board of Directors, a hike in quarterly dividend to 7.5 cents per share.
Chairman and Chief Executive Officer Beth Mooney said: ‘"In the first quarter, we continued to benefit from solid loan growth, driven by our commercial businesses, as well as the traction we are gaining from investments in areas such as trust and investment services and cards and payments.”
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for KeyCorp. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this KeyCorp earnings report!
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