Fifth Third Bancorp Earnings: Profit JUMPS for Second Straight Quarter

S&P 500 (NYSE:SPY) component Fifth Third Bancorp (NASDAQ:FITB) reported net income above Wall Street’s expectations for the second quarter. Fifth Third Bancorp is a diversified financial services company which conducts its lending, deposit gathering, transaction processing and service advisory activities through its subsidiaries.

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Fifth Third Bancorp Earnings Cheat Sheet

Results: Net income for Fifth Third Bancorp rose to $376 million (40 cents per share) vs. $337 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 11.6% from the year-earlier quarter.

Revenue: Rose 3.4% to $1.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fifth Third Bancorp beat the mean analyst estimate of 35 cents per share. It beat the average revenue estimate of $1.54 billion.

Quoting Management: Quot”Earnings trends remained positive in the second quarter of 2012. Results came in better than we had anticipated and followed a very strong first quarter,” said Kevin Kabat, President and CEO of Fifth Third Bancorp. “Mortgage results remained strong. Our capabilities and strength of market position has enabled us to capture significant business as we assist our customers in taking advantage of historically low interest rates. Card and processing revenue was up nine percent sequentially, and corporate banking revenue increased five percent sequentially as loan production and ancillary business volume remained healthy during the quarter. “Expenses were well managed and declined four percent in the quarter. We remain focused on expenses as we navigate through a relatively sluggish economic environment, even as we continue to develop new products and enhance services to customers. Charged-off loans dropped to 88 basis points of loans and leases, the lowest level since 2007 and we continue to expect further improvement in the second half of the year.”

Key Stats:

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 45 cents versus a mean estimate of net income of 36 cents per share.

The company has now seen net income rise for two consecutive quarters. In the first quarter, net income rose 62.3% from the year earlier.

Looking Forward: Expectations for the third quarter have not changed from 36 cents. For the fiscal year, the average estimate has moved up from $1.43 a share to $1.50 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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