Have you been eager to see how BB&T Corporation (BBT) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this North Carolina-based diversified financial holding company’s earnings release this morning:
An Earnings Beat
BB&T came out with earnings per share of 76 cents, beating the Zacks Consensus Estimate of 73 cents.
Lower expenses and higher noninterest income were primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for BB&T depicted a neutral stance prior to the earnings release as the Zacks Consensus Estimate remained flat over the last 30 days.
Also, BB&T doesn’t have a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered negative surprises in two of the prior three quarters. Overall, the company missed the Zacks Consensus Estimate by an average of 2.37% in the trailing four quarters.
Revenue Came In Lower/Higher Than Expected
BB&T posted total revenues of 2.4 billion, which beat the Zacks Consensus Estimate of 2.3 billion. Further, it came in line with the year-ago number.
Key Developments to Note:
BB&T sold around $140 million of residential mortgage loans, most of which were nonperforming, at an after-tax gain of $24 million. Credit quality reflected board improvement with annualized net charge-offs amounting to 0.39% of loans, well below the normalized range of 50 to 70 basis points.
Moreover, in Nov 2014, BB&T announced the deal to acquire Susquehanna Bancshares, Inc. in a cash-cum-stock transaction valued at $2.5 billion. This deal will add 245 retail branches expanding the company’s footprints in the Mid-Atlantic region and result in a cost savings of $160 million annually upon closure of the acquisition.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for BB&T. 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 BB&T earnings report!
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