KeyCorp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component KeyCorp (NYSE:KEY) will unveil its latest earnings on Thursday, October 18, 2012. 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.

KeyCorp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 21 cents per share, a decline of 12.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 19 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 21 cents during the last month. Analysts are projecting profit to rise by 7.6% compared to last year’s 85 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 23 cents per share against a mean estimate of profit of 18 cents per share.

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Stock Price Performance: Between September 14, 2012 and October 12, 2012, the stock price dropped 71 cents (-7.9%), from $9.04 to $8.33. The stock price saw one of its best stretches over the last year between September 5, 2012 and September 14, 2012, when shares rose for eight straight days, increasing 8.8% (+73 cents) over that span. It saw one of its worst periods between March 30, 2012 and April 10, 2012 when shares fell for seven straight days, dropping 5.6% (-48 cents) over that span.

Analyst Ratings: There are mostly holds on the stock with 14 of 23 analysts surveyed giving that rating.

A Look Back: In the second quarter, profit fell 1.7% to $236 million (24 cents a share) from $240 million (25 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.8% to $1.15 billion from $1.18 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 10.7% in the third quarter of the last fiscal year, 16.8% in fourth quarter of the last fiscal year and 5% in the first quarter and then fell again in the second quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 16% over the past four quarters.

Wall St. Revenue Expectations: On average, analysts predict $1.03 billion in revenue this quarter, a decline of 1% from the year-ago quarter. Analysts are forecasting total revenue of $4.1 billion for the year, no change from last year’s revenue of $4.1 billion.

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

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