Have you been eager to see how SunTrust Banks, Inc. (STI) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Atlanta-based commercial banking organization’s earnings release this morning:
An Earnings Beat
SunTrust came out with adjusted earnings per share of 88 cents, beating the Zacks Consensus Estimate of 80 cents.
Reduction in provisions acted as the tailwind while lower non-interest income and higher expense acted as dampeners.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for SunTrust depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 1.2% lower over the last 30 days.
However, SunTrust has a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in two of the prior three quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 7.18% in the trailing four quarters.
Revenue Came In Higher Than Expected
SunTrust posted total revenues of 2.04 billion, which marginally beat the Zacks Consensus Estimate of 2.03 billion. However, it compared unfavorably with the year-ago number of 2.06 billion.
Key Developments to Note:
SunTrust bought back shares worth $458 million in 2014. Moreover, the company plans to repurchase shares worth $110 million to $120 million during the first quarter of 2015.
Further, the company issued $500 million of non-cumulative perpetual preferred stock during the reported quarter.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for SunTrust. 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.
How the Market Reacted So Far
Following the earnings release, SunTrust shares were marginally up in the pre-trading session. This is in contrary to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this SunTrust earnings report!
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