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SunTrust (STI) Beats on Q4 Earnings & Revenue Estimates

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Have you been eager to see how SunTrust Banks (STI - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Atlanta-based commercial banking organization’s earnings release this morning:

An Earnings Beat

SunTrust came out with adjusted earnings per share of $1.50, which surpassed the Zacks Consensus Estimate of $1.40.

A rise in revenues and lower expenses mainly led to the earning beat.

How Was the Estimate Revision Trend?

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

Notably, SunTrust has a decent earnings surprise history. Before posting earnings beat in Q4, the company delivered positive surprises in three of the trailing four quarters, with average beat of 9.4%.

SunTrust Banks, Inc. Price and EPS Surprise

 

SunTrust Banks, Inc. Price and EPS Surprise | SunTrust Banks, Inc. Quote

Revenues Came in Higher Than Expected

SunTrust posted net revenues of $2.37 billion, which beat the Zacks Consensus Estimate of $2.35 billion.
  
Key Q4 Statistics:
 

  • Net interest margin was 3.27%, up 10 basis points year over year
  • Provision for credit losses was $89 million, up 20% year over year
  • Average consumer and commercial deposits stood at $161.6 billion
  • Average loans held for investment were $149.1billion
  • Common Equity Tier 1 ratio (fully phased-in) was 9.21% as of Dec 31, 2018


What Zacks Rank Says

SunTrust currently has a Zacks Rank #3 (Hold). 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, SunTrust shares were up nearly 1.6% 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 SunTrust earnings report!

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