Suntrust Banks Inc. Earnings: Quarter Lacks Gusto

S&P 500 (NYSE:SPY) component Suntrust Banks Inc. (NYSE:STI) reported its results for the fourth 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 Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for Suntrust Banks Inc. fell to $155 million (28 cents per share) vs. $184.4 million (23 cents per share) a year earlier. This is a decline of 15.9% from the year earlier quarter.

Revenue: Revenue was $2.03 billion last quarter.

Actual vs. Wall St. Expectations: STI beat the mean analyst estimate of 27 cents per share. It fell short of the average revenue estimate of $2.09 billion.

Quoting Management: “Our client-centric banking approach is driving momentum in our core business fundamentals,” said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. “We experienced healthy loan growth again this quarter, particularly in our commercial and industrial portfolio, which we have targeted for expansion. Our favorable deposit growth and mix trends continued. Additionally, credit quality improved with further declines in net charge-offs and nonperforming loans.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the third quarter, by 2 cents in the second quarter, and by 9 cents in the first quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 33 cents per share, down from 38 cents ninety days ago. The average estimate for the fiscal year is $1.09 per share, down from $1.13 ninety days ago.

Competitors to Watch: Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), KeyCorp (NYSE:KEY), PNC Financial Services (NYSE:PNC), Regions Financial Corp. (NYSE:RF), First Horizon National Corp. (NYSE:FHN), Citigroup Inc. (NYSE:C), Bank of America Corp. (NYSE:BAC), Cadence Financial Corp. (NASDAQ:CADE), and BB&T Corporation (NYSE:BBT).

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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