S&P 500 (NYSE:SPY) component Huntington Bancshares Incorporated (NASDAQ:HBAN) reported net income above Wall Street’s expectations for the first quarter. Huntington Bancshares is a financial holding company that offers various financial services through its subsidiary in several states.
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Huntington Bancshares Incorporated Earnings Cheat Sheet for the First Quarter
Results: Net income for Huntington Bancshares Incorporated rose to $153.3 million (17 cents per share) vs. $126.4 million (14 cents per share) in the same quarter a year earlier. This marks a rise of 21.2% from the year-earlier quarter.
Actual vs. Wall St. Expectations: Huntington Bancshares Incorporated beat the mean analyst estimate of 14 cents per share.
Quoting Management: “We are very pleased with the quarter. By staying focused on executing our strategic plan, we are making steady progress in improving long-term profitability and adding to our earnings growth opportunities,” said Stephen D. Steinour, chairman, president and chief executive officer. “This quarter’s financial results contained two significant items. The first was a gain relating to our recently announced FDIC-assisted purchase of Fidelity Bank in Dearborn, Michigan. The other was an addition to our litigation reserves. When looking at the performance adjusted for those significant items, revenue is meaningfully higher with noninterest expense, after considering seasonal FICA and other payroll taxes, basically unchanged.”
The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 3.2% and in the third quarter of the last fiscal year, the figure rose 42%.
The company beat estimates last quarter after meeting expectations in the fourth quarter of the last fiscal year with net income of 14 cents per share.
Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 15 cents per share to 14 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is 59 cents per share, down from 61 cents ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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