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Regional Banks Post Mixed Earnings Results

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Back to the grind of Q4 earnings season this morning, with next week set to ramp-up even stronger with the total amount of companies and marquee names reporting for Q4. Most of the big banks have already posted for Q4; this morning — aside from a slight miss from Kansas City Southern (KSU - Free Report) and a slight beat from Schlumberger (SLB - Free Report) — we see a large share of Regional Banks reporting quarterly earnings. There isn’t time here to account for them all, so we’ll stick with just those carrying a Zacks Rank #1 (Strong Buy) into the morning’s report.

Headquartered in Sandy, UT and founded in 2009, Ally Bank (ALLY - Free Report) easily outperformed estimates on both top and bottom lines: $1.60 per share was well in front of the $1.05 expected and $0.95 reported a year ago, on $1.98 billion in revenues which outpaced the $1.65 billion estimate and $1.64 billion in the year-ago quarter. This amounts to a 52.4% positive earnings surprise, and the bank’s third-straight earnings beat.

Honolulu-based First Hawaiian Bank (FHB - Free Report) posted 50 cents per share versus 42 cents in the Zacks consensus for its Q4 earnings report. Revenues of $188.83 million propelled past estimates of $181.24 million, and topped the year-ago revenue actual of $186.33 million. The oldest financial institution of the Hawaiian Islands, founded in 1858, has now posted two straight earnings beats after two straight misses prior.

Huntington Bancshares (HBAN - Free Report) , founded in 1866 by renowned capitalist from central Ohio, P.W. Huntington, missed estimates on both top and bottom lines in its Q4 report: 27 cents per share was below the 30 cents in the Zacks consensus and 28 cents reported in the year-ago quarter, and $1.24 billion in quarterly revenues came up 0.86% short of expectations. This marks the bank’s second miss in the last four quarters. After having gained 15% year to date, shares are down 2.5% in today’s pre-market.

Big names are hitting the Q4 earnings tape next week, with Microsoft (MSFT - Free Report) , Johnson & Johnson (JNJ - Free Report) and Novartis (NVS - Free Report) reporting Tuesday, Apple (AAPL - Free Report) , Tesla (TSLA - Free Report) and Facebook (FB - Free Report) Wednesday. This morning, major indexes are skimming profits across the board, down from fresh all-time highs reached in recent trading days.

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