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SunTrust (STI) Q3 Earnings In-Line, Revenues Beats Estimates

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Have you been eager to see how SunTrust Banks, Inc. (STI - Free Report) performed in Q3 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:

In-Line Earnings

SunTrust came out with earnings per share of $1.06, which is in-line with the Zacks Consensus Estimate.

A rise in revenues 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 30 days.

Notably, SunTrust has a decent earnings surprise history. Before posting in-line earnings in Q3, the company delivered positive surprises in all four prior quarters, with average beat of 3.3%.

SunTrust Banks, Inc. Price and EPS Surprise

 

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

Higher-than-Expected Revenues

SunTrust posted net revenue (on FTE basis) of $2.31 billion, which surpassed the Zacks Consensus Estimate of $2.29 billion. However, it was 4% above the year-ago number.
    
Key Statistics:
 

  • Net interest margin was 3.15%, up 19 basis points year over year
  • Provision for credit losses was $120 million, up 23.7% year over year
  • Average consumer and commercial deposits stood at $159.4 billion
  • Average loan held for investment were $144.7 billion
  • Common Equity Tier 1 (fully phased-in) was 9.62% as of Sep 30, 2017


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for SunTrust. 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 SunTrust earnings report!

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