SunTrust Banks Third Quarter Earnings Approach

S&P 500 (NYSE:SPY) component SunTrust Banks (NYSE:STI) will unveil its latest earnings on Monday, October 22, 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 analyst estimate is for profit of $2.01 per share, a rise of more than fivefold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 50 cents. Between one and three months ago, the average estimate moved up. It has risen from $2 during the last month. Analysts are projecting profit to rise by 192.7% versus last year to $3.60.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting net income of 50 cents per share against a mean estimate of profit of 44 cents per share.

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A Look Back: In the second quarter, profit rose 54.5% to $275 million (50 cents a share) from $178 million (33 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 1.1% to $2.43 billion from $2.46 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 38.8% in revenue from the year-earlier quarter to $3.04 billion.

Stock Price Performance: Between July 23, 2012 and October 16, 2012, the stock price rose $5.61 (24.5%), from $22.94 to $28.55. The stock price saw one of its best stretches over the last year between August 6, 2012 and August 17, 2012, when shares rose for 10 straight days, increasing 6.1% (+$1.46) over that span. It saw one of its worst periods between July 17, 2012 and July 24, 2012 when shares fell for six straight days, dropping 8.7% (-$2.18) over that span.

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 7.9% in the third quarter of the last fiscal year, 13.8% in fourth quarter of the last fiscal year and 1.1% in the first quarter and then fell again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 18.5% for the last four quarters.

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

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

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