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What's in the Cards for Fifth Third (FITB) in Q1 Earnings?
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Fifth Third Bancorp (FITB - Free Report) is scheduled to report first-quarter 2018 results before the opening bell on Apr 24. The company is expected to witness year-over-year growth in revenues and earnings.
Also, the company has a decent earnings surprise history. It topped earnings in two of the trailing four quarters with an average positive earnings surprise of 5%.
In the last reported quarter, the company’s earnings had surpassed the Zacks Consensus Estimate. Results were supported by higher net interest income and a strong capital position. However, lower non-interest income and higher provisions were the undermining factors.
Fifth Third’s shares have gained 4.8% in the three-month period ended Mar 31, 2018, against the industry’s decline of 2.4%.
Will the upcoming earnings release give a boost to Fifth Third’s stock? That depends largely on whether the firm is able to impress the market with its first-quarter results.
Factors to Influence Q1 Results
Expenses Might Increase Slightly: Fifth Third’s ongoing strategic investments in several areas, such as technology, will increase expenses. However, the company might be successful in offsetting the expense rise through its North Star initiatives to some extent.
Net Interest Income (NII) to Improve: The quarter witnessed a moderate improvement in lending — particularly on the commercial and industrial front. Thus, loan growth, combined with a rise in interest rates, is likely to boost the company’s NII.
The Zacks Consensus Estimate for revenues of $1.55 billion indicates 5.8% year-over-year growth.
Fee Income Might Rise Slightly: Fifth Third’s focus on strengthening its fee income base through North Star initiatives is likely to lend support. Moreover, the trend of consumer spending was strong during the quarter, which is likely to boost the bank’s credit and debit card revenues.However, poor mortgage banking revenues during the quarter are likely to offset the positives to some extent.
Let’s have a look at what our quantitative model predicts:
Our proven model doesn’t conclusively show that Fifth Third will be able to beat the Zacks Consensus Estimate this time around, as it does not have the right combination of two key ingredients. Note that a stock with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better has significantly higher chances of beating estimates.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Fifth Third is -1.39%.
Zacks Rank: Fifth Third carries a Zacks Rank of 3.
Also, Fifth Third’s activities in the first quarter were inadequate to encourage analysts to revise earnings estimates upward. However, the Zacks Consensus Estimate for earnings of 48 cents for the quarter reflects year-over-year improvement of 26.3%.
Stocks That Warrant a Look
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Capital One Financial Corporation (COF - Free Report) has an Earnings ESP of +0.79% and carries a Zacks Rank of 3. The company is slated to release results on Apr 24.
New York Community Bancorp (NYCB - Free Report) is slated to release results on Apr 25. It has an Earnings ESP of +0.14% and carries a Zacks Rank #3.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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What's in the Cards for Fifth Third (FITB) in Q1 Earnings?
Fifth Third Bancorp (FITB - Free Report) is scheduled to report first-quarter 2018 results before the opening bell on Apr 24. The company is expected to witness year-over-year growth in revenues and earnings.
Also, the company has a decent earnings surprise history. It topped earnings in two of the trailing four quarters with an average positive earnings surprise of 5%.
In the last reported quarter, the company’s earnings had surpassed the Zacks Consensus Estimate. Results were supported by higher net interest income and a strong capital position. However, lower non-interest income and higher provisions were the undermining factors.
Fifth Third’s shares have gained 4.8% in the three-month period ended Mar 31, 2018, against the industry’s decline of 2.4%.
Fifth Third Bancorp Price and EPS Surprise
Fifth Third Bancorp Price and EPS Surprise | Fifth Third Bancorp Quote
Will the upcoming earnings release give a boost to Fifth Third’s stock? That depends largely on whether the firm is able to impress the market with its first-quarter results.
Factors to Influence Q1 Results
Expenses Might Increase Slightly: Fifth Third’s ongoing strategic investments in several areas, such as technology, will increase expenses. However, the company might be successful in offsetting the expense rise through its North Star initiatives to some extent.
Net Interest Income (NII) to Improve: The quarter witnessed a moderate improvement in lending — particularly on the commercial and industrial front. Thus, loan growth, combined with a rise in interest rates, is likely to boost the company’s NII.
The Zacks Consensus Estimate for revenues of $1.55 billion indicates 5.8% year-over-year growth.
Fee Income Might Rise Slightly: Fifth Third’s focus on strengthening its fee income base through North Star initiatives is likely to lend support. Moreover, the trend of consumer spending was strong during the quarter, which is likely to boost the bank’s credit and debit card revenues.However, poor mortgage banking revenues during the quarter are likely to offset the positives to some extent.
Let’s have a look at what our quantitative model predicts:
Our proven model doesn’t conclusively show that Fifth Third will be able to beat the Zacks Consensus Estimate this time around, as it does not have the right combination of two key ingredients. Note that a stock with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better has significantly higher chances of beating estimates.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Fifth Third is -1.39%.
Zacks Rank: Fifth Third carries a Zacks Rank of 3.
Also, Fifth Third’s activities in the first quarter were inadequate to encourage analysts to revise earnings estimates upward. However, the Zacks Consensus Estimate for earnings of 48 cents for the quarter reflects year-over-year improvement of 26.3%.
Stocks That Warrant a Look
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Capital One Financial Corporation (COF - Free Report) has an Earnings ESP of +0.79% and carries a Zacks Rank of 3. The company is slated to release results on Apr 24.
BOK Financial Corporation (BOKF - Free Report) is slated to report first-quarter 2018 results on Apr 25. It has an Earnings ESP of +0.24% and a Zacks Rank#2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New York Community Bancorp (NYCB - Free Report) is slated to release results on Apr 25. It has an Earnings ESP of +0.14% and carries a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>