SunTrust Banks Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component SunTrust Banks (NYSE:STI) will unveil its latest earnings on Friday, July 20, 2012. SunTrust Banks is a financial services holding company whose businesses provide a range of financial services to consumer and corporate clients.

SunTrust Banks Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 44 cents per share, a rise of 33.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 39 cents. Between one and three months ago, the average estimate moved up. It has risen from 43 cents during the last month. Analysts are projecting profit to rise by 57.7% compared to last year’s $1.94.

Past Earnings Performance: Last quarter, the company beat estimates by 14 cents, coming in at net income of 46 cents a share versus the estimate of profit of 32 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit rose 38.9% to $250 million (46 cents a share) from $180 million (8 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 1.1% to $2.41 billion from $2.44 billion.

Stock Price Performance: Between May 17, 2012 and July 16, 2012, the stock price had risen $2.70 (12.2%), from $22.17 to $24.87. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 20, 2012, when shares rose for eight straight days, increasing 8.4% (+$1.81) over that span. It saw one of its worst periods between July 22, 2011 and August 2, 2011 when shares fell for eight straight days, dropping 11% (-$2.85) over that span.

Analyst Ratings: With 16 analysts rating the stock a buy, three rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

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 2.6% in the second quarter of the last fiscal year, 7.9% in third quarter of the last fiscal year and 13.8% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

Wall St. Revenue Expectations: On average, analysts predict $2.16 billion in revenue this quarter, a decline of 0.5% from the year-ago quarter. Analysts are forecasting total revenue of $8.73 billion for the year, a rise of 2.9% from last year’s revenue of $8.48 billion.

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

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