Have you been eager to see how SunTrust Banks, Inc. (NYSE:STI) performed in Q2 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 89 cents, which surpassed the Zacks Consensus Estimate was 87 cents.
Higher revenues mainly led to the earning beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for SunTrust depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 87 cents over the last 7 days.
However, SunTrust has a decent earnings surprise history. Before posting earnings beat in Q2, the company delivered positive surprises in all four prior quarters, with average beat of 11.37%.
Better-than-Expected Revenues
SunTrust posted net revenue (on FTE basis) of $2.22 billion, which outpaced the Zacks Consensus Estimate of $2.14 billion. Further, it was 7% above the year-ago number.
Key Statistics:
- Net interest margin was 2.99%, up 5 basis points year over year
- Provision for credit losses was $146 million, up 462% year over year
- Average consumer and commercial deposits stood at $154.2 billion as of Jun 30, 2016
- Average loan balances were $141.2 billion as of Jun 30, 2016
- Common Equity Tier 1 ("CET1") (transitional) was 9.51% as of Jun 30, 2016
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.
Check back later for our full write up on this SunTrust earnings report!
SUNTRUST BKS (STI): Free Stock Analysis Report
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