KeyCorp Earnings: Momentum Continues

KeyCorp (NYSE:KEY) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. Shares are down 0.17%.

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KeyCorp Earnings Cheat Sheet

Results: Net income increased 7% to $214 million (21 cents per diluted share) in the quarter versus a net gain of $200 million in the year-earlier quarter.

Revenue: Decreased 3.78% to $1.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: KeyCorp reported adjusted net income of 21 cents per share. By that measure, the company met the mean analyst estimate of $0.21. It beat the average revenue estimate of $1.06 billion.

Quoting Management: “We had a good finish to 2012,” said Chairman and Chief Executive Officer Beth E. Mooney. “Our full-year results reflect success in executing on our strategies to grow loans, add additional payment capabilities to our product line in the form of credit cards and improved mobile banking, and moving forward on our efficiency initiative…

…Our momentum continued in the most recent quarter. The net interest margin was up 14 basis points versus the prior quarter driven by ongoing liability repricing and growth in both commercial and consumer loan balances. We also experienced significant revenue growth in our Corporate Bank from both our investment banking and commercial mortgage businesses.”

Key Stats:

Revenue decreased 11.93% from $1.22 billion in the previous quarter. Net income decreased 2.28% from $219 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.21 and has not changed. For the current year, the average estimate has moved down from a profit of $0.89 to a profit of $0.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)