Back to top

Tale of the Tape

Zacks Equity Research

Regions Financial (RF) Q3 Earnings Beats as Revenues Rise
October 18, 2016


Trades from $3

Have you been eager to see how Regions Financial Corporation (RF - Analyst Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this AL-based popular bank’s earnings release this morning:

An Earnings Beat

Regions Financial came out with adjusted earnings per share of 23 cents, beat the Zacks Consensus Estimate was 21 cents. The results in the quarter exclude certain non-recurring items.

A rise in revenues was primarily responsible for earnings beat.

How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Regions Financial depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.

Also, Regions has a decent earnings surprise history. Before posting earnings beat in Q3, the company delivered positive surprises in three of the prior four quarters.

REGIONS FINL CP Price and EPS Surprise



Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.70% in the trailing four quarters.

Revenue Came In Higher Than Expected   

Regions Financial posted adjusted total revenues of $1.4 billion, which outpaced the Zacks Consensus Estimate of $1.38 billion. Also, it compared favorably with the year-ago number of $1.33 billion.

Key Stats:

Net Income: $320 million in Q3, up from $258 million in the prior year quarter
Net interest margin (FTE): 3.06%, down from 3.13% in prior year quarter.
Provision for loan losses: $29 million, down from $113 million in the year-ago quarter
Period end deposits: up 2% year over year to $99.3 billion in Q3.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Regions Financial. 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.)

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

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

In-Depth Zacks Research for the Tickers Above