SunTrust Banks Earnings: A Mixed Bag

SunTrust Banks, Inc. (NYSE:STI) topped Wall Street’s profit expectation, BUT came up short on beating the revenue estimate. The revenue miss is a negative sign to shareholders seeking high growth out of the SunTrust. Shares are down 0.37%.

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SunTrust Banks, Inc. Earnings Cheat Sheet

Results: Net income increased 372.97% to $350 million (65 cents per diluted share) in the quarter versus a net gain of $74 million in the year-earlier quarter.

Revenue: Rose 1.5% to $2.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SunTrust Banks, Inc. reported adjusted net income of 65 cents per share. By that measure, the company beat the mean analyst estimate of $0.61. It missed the average revenue estimate of $2.32 billion.

Quoting Management: “Favorable performance trends continued, including strong noninterest income and lower expenses, marking another quarter of core earnings expansion,” said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks…

…We concluded the year in an even stronger position, driving higher revenue and efficiency gains, while further improving our overall risk profile.”

Key Stats:

Revenue decreased 42.31% from $3.99 billion in the previous quarter. Net income decreased 67.5% from $1.08 billion in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.63 to a profit $0.62. For the current year, the average estimate is a profit of $3.55, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)