Have you been eager to see how KeyCorp. KEY performed in Q3 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:
An Earnings Miss
KeyCorp came out with earnings per share of 26 cents, missing the Zacks Consensus Estimate by a penny.
Higher revenues were more than offset by increased expenses and substantial rise in provisions.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for KeyCorp depicted pessimism prior to the earnings release. The Zacks Consensus Estimate declined marginally over the last 7 days.
However, KeyCorp has an unimpressive earnings surprise history. Before posting an earnings miss in Q3, the company has delivered positive earnings surprise in only one of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 1.03% in the trailing four quarters.
Revenues Meet Expectations
KeyCorp posted total revenues of $1.06 billion in line with the Zacks Consensus Estimate. Moreover, it compared favorably with the year-ago figure of $992 million.
Key Stats to Note:
Revenues jump 7% year over year
Strong rise in core fee-based revenues, non-interest income soars 12.7%
Expenses up 2.5%– includes pension settlement charge of $19 million
Positive operating leverage relative to year-ago quarter
Provisions surge 137% to $45 million
Investment banking and debt placement fees primarily drove the rise, jumping 23.9% year over year; followed by 15.4% rise in card fees and 9% rise in trust and investment banking fees.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) 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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