BB&T Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component BB&T Corporation (NYSE:BBT) reported net income above Wall Street’s expectations for the third quarter. BB&T is a financial holding company which, through its subsidiary Branch Banking and Trust, provides a range of banking services and loans to individuals and businesses.

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BB&T Earnings Cheat Sheet for the Third Quarter

Results: Net income for BB&T Corporation rose to $366 million (52 cents per share) vs. $210 million (30 cents per share) in the same quarter a year earlier. This marks a rise of 74.3% from the year earlier quarter.

Revenue: Revenue was $2.1 billion last quarter.

Actual vs. Wall St. Expectations: BBT beat the mean analyst estimate of 49 cents per share. It fell short of the average revenue estimate of $2.18 billion.

Quoting Management: “We are very pleased to report our strongest earnings quarter in three years,” said Chairman and Chief Executive Officer Kelly S. King. “The increase was driven by significantly improved credit quality and improved net interest income. Net revenues totaled $2.1 billion this quarter, led by taxable-equivalent net interest income of $1.5 billion, up 8% compared to last year. BB&T also posted very healthy, broad-based loan growth,” King said. “BB&T’s average loans held for investment grew an annualized 4%, and, excluding our covered and residential ADC portfolios, increased an annualized 7%. Further, all our leading indicators for loan growth are positive, with robust pipelines and solid momentum as we enter the fourth quarter. “We continue to see impressive growth rates in low-cost deposits and to improve our deposit mix,” King said. “Average deposits increased 32% on an annualized basis compared to the second quarter, and noninterest-bearing deposits and interest checking increased 22% and 14%, respectively. We have reduced the average cost of interest-bearing deposits from 0.72% last quarter to 0.65% this quarter.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 46.2% and in the first quarter, the figure rose 19.7%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by one cent in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 51 cents a share to 50 cents over the last thirty days. Over the past three months, the average estimate for the fiscal year has climbed from $1.72 per to share to $1.75.

Competitors to Watch: JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), SunTrust Banks, Inc. (NYSE:STI), PNC Financial Services (NYSE:PNC), Pinnacle Financial Partners (NASDAQ:PNFP), Regions Financial Corp. (NYSE:RF), Bank of America Corp. (NYSE:BAC), Citigroup (NYSE:C), First Horizon National Corp. (NYSE:FHN), First Security Group, Inc. (NASDAQ:FSGI), and First Citizens BancShares Inc. (NASDAQ:FCNCA).

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(Source: Xignite Financials)

 

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