Suntrust Banks Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Suntrust Banks Inc. (NYSE:STI) reported net income above Wall Street’s expectations for the third quarter. SunTrust Banks is a financial services holding company whose businesses provide a range of financial services to consumer and corporate clients.

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Suntrust Banks Inc. Earnings Cheat Sheet

Results: Net income for the banks-major regional rose to $1.07 billion ($1.98 per share) vs. $215 million (39 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year-earlier quarter.

Revenue: Rose 75% to $3.84 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Suntrust Banks Inc. beat the mean analyst estimate of $1.84 per share. It beat the average revenue estimate of $3.04 billion.

Quoting Management: “This quarter’s actions more favorably position the Company for the future. In addition, we demonstrated another quarter of improved core performance,” said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. “As we manage through the challenging revenue environment, we remain intensely focused on deepening client relationships and improving efficiency.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 54.5% and in the first quarter, the figure rose 38.9%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 6 cents in the second quarter, by 14 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 54 cents per share, down from 55 cents ninety days ago. The average estimate for the fiscal year is $1.94 per share, a rise from $1.75 ninety days ago.

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

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