BB&T Earnings: Here’s Why Investors are Bidding the Stock Price Higher

BB & T Corp. (NYSE:BBT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.62%.

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BB & T Corp. Earnings Cheat Sheet

Results: Net income increased 29.41% to $506 million (71 cents per diluted share) in the quarter versus a net gain of $391 million in the year-earlier quarter.

Revenue: Decreased 6.75% to $2.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: BB & T Corp. reported adjusted net income of 71 cents per share. By that measure, the company beat the mean analyst estimate of $0.7. It beat the average revenue estimate of $2.46 billion.

Quoting Management: “2012 was an outstanding year for BB&T,” said Chairman and CEO Kelly S. King. “We achieved record net income for the year and accomplished most of our strategic initiatives. Noninterest income grew 23% annually, led by record performances in mortgage banking, insurance and investment banking and brokerage…

…Our performance benefited from strong improvement in credit costs and more than 6% growth in net interest income. Net interest margin remained strong at 3.84% for the quarter. We are pleased noninterest expenses were essentially flat compared to a year ago even though we added Crump Insurance and BankAtlantic during the year. We were also successful in generating positive operating leverage.

Key Stats:

Revenue decreased 5.7% from $2.68 billion in the previous quarter. Net income increased 2.43% from $494 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.71 to a profit $0.68. For the current year, the average estimate has moved down from a profit of $2.76 to a profit of $2.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)