KeyCorp Earnings: Profit Slides

S&P 500 (NYSE:SPY) component KeyCorp (NYSE:KEY) reported its results for the fourth quarter. KeyCorp is a financial holding company that offers its clients retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services.

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KeyCorp Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the money center banks company fell to $200 million (20 cents per share) vs. $320 million (31 cents per share) a year earlier. This is a decline of 37.5% from the year earlier quarter.

Actual vs. Wall St. Expectations: KEY reported adjusted net income of 21 cents per share. By that measure, the company beat the mean estimate of 20 cents per share.

Quoting Management: Chairman and Chief Executive Officer Beth Mooney stated, “Key’s fourth quarter results reflect continued improvement in credit quality and the third consecutive quarter of growth in our commercial, financial and agricultural loan portfolio. We are encouraged by this growth and believe it demonstrates our ability to leverage the alignment of our franchise across business lines to support the needs of our clients. Further, these results confirm our belief that the inflection point for loan growth was reached in the third quarter of 2011.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by 6 cents in the second quarter, and by 6 cents in the first quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has risen to 19 cents per share from 18 cents. The average estimate for the fiscal year has remained at 89 cents per share.

Competitors to Watch: Wells Fargo & Company (NYSE:WFC), SunTrust Banks, Inc. (NYSE:STI), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), PNC Financial Services (NYSE:PNC), Citigroup Inc. (NYSE:C), Regions Financial Corp. (NYSE:RF), Northrim BanCorp, Inc. (NASDAQ:NRIM), Pacific Continental Corp. (NASDAQ:PCBK), and Zions Bancorporation (NASDAQ:ZION).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com