Regions Financial Earnings: Here’s Why Investors are Bidding Up Shares

Regions Financial Corp. (NYSE:RF) delivered a profit and beat Wall Street’s expectations, AND met the revenue expectation. Shares are up 1%.

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Regions Financial Corp. Earnings Cheat Sheet

Results: Net income increased to $261 million (22 cents per diluted share) in the quarter versus a net loss of $548 million in the year-earlier quarter.

Revenue: Rose 74.42% to $1.35 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Regions Financial Corp. reported adjusted net income of 2 cents per share. By that measure, the company beat the mean analyst estimate of $0.21. It met the average revenue estimate of $1.35 billion.

Interesting Driver: Commercial and industrial loans experienced continued growth in the fourth quarter, particularly in lending to middle market customers. Average loans in this category were up 1.5 percent compared to the prior quarter and 8.7 percent over the same period last year. Total commercial and industrial commitments grew $1.4 billion, or 4.2 percent linked quarter, while commercial loan production (including renewals) totaled $10.4 billion, of which $4.3 billion were new loan originations.

Key Stats:

Revenue decreased 9.82% from $1.5 billion in the previous quarter. Net income decreased 13.29% from $301 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.18 to a profit $0.19. For the current year, the average estimate has moved up from a profit of $0.73 to a profit of $0.75 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)