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Regions (RF) Q3 Earnings Meet Expectations, Revenues Up Y/Y

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Have you been eager to see how Regions Financial Corporation (RF - Free 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:

In Line Earnings

Regions Financial came out with earnings per share of 25 cents, in line with the Zacks Consensus Estimate. A rise in revenues and lower expenses were offset by elevated provisions.

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 seven days.

Also, Regions has an impressive earnings surprise history. Before posting in-line earnings in Q3, the company delivered positive surprises in all the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 6.89% in the trailing four quarters.
 

Revenue Came In Lower Than Expected

Regions Financial posted adjusted total revenues of $1.42 billion, lagging the Zacks Consensus Estimate of $1.45 billion. It was above the year-ago number of $1.4 billion by 1.9%.

Key Stats:

  • Net Income from continuing operations: $296 million in Q3, down from $303 million in the prior year quarter
  • Net interest margin (FTE): 3.36%, up from 3.06% in prior year quarter
  • Provision for loan losses more than doubled to $76 million from the year-ago quarter
  • Growth in capital markets revenue, slight increase in mortgage, wealth management and card & ATM fees are expected to accelerate non-interest income in Q4

 

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for Regions Financial. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. 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!

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