Back to top

Image: Bigstock

KeyCorp (KEY) Beats on Q4 Earnings & Revenue Estimates

Read MoreHide Full Article

Have you been eager to see how KeyCorp. (KEY - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Cleveland-based bank-oriented financial services company’s earnings release this morning:

An Earnings Beat

KeyCorp came out with adjusted earnings per share of 31 cents, beating the Zacks Consensus Estimate of 29 cents.

Rise in revenue was largely responsible for earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for KeyCorp depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate remained flat over the last 7 days.

However, KeyCorp does not have a decent earnings surprise history. Before posting the earnings beat in Q4, the company delivered negative surprises in two quarters of the prior four quarters.

KeyCorp Price and EPS Surprise

 

KeyCorp Price and EPS Surprise | KeyCorp Quote

Revenue Came In Higher Than Expected

KeyCorp posted total revenues of $1.57 billion, which surpassed the Zacks Consensus Estimate of $1.45 billion. Moreover, the figure was above the year-ago figure.

Key Stats to Note:

 

  • Net interest margin up 25 basis point year over year to 3.12%
  • Provision for credit losses increased 46.7% from the year-ago quarter to $66 million
  • Average loans surged 43.3% from the prior-year quarter to $85.4 billion
  • Average deposits jumped 46.5% year over year to $104.7 billion

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for KeyCorp. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

How the Market Reacted So Far

Following the earnings release, KeyCorp shares were up nearly 1.3% in the pre-trading session. This is in line with what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.

Check back later for our full write up on this KeyCorp earnings report!

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


KeyCorp (KEY) - free report >>