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SunTrust's (STI) Q3 Earnings Beat Estimates, Revenues Up

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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:

An Earnings Beat

SunTrust came out with adjusted earnings per share of $1.42, which surpassed the Zacks Consensus Estimate of $1.38.

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 Q3, the company delivered positive surprises in three of the trailing four quarters, with average beat of 8.7%.

SunTrust Banks, Inc. Price and EPS Surprise
 

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

Revenues Came in Lower Than Expected

SunTrust posted net revenues (on FTE basis) of $2.32 billion, which lagged the Zacks Consensus Estimate of $2.34 billion.
   
Key Q3 Statistics:

  • Net interest margin was 3.22%, up 15 basis points year over year
  • Provision for credit losses was $61 million, down 49% year over year
  • Average consumer and commercial deposits stood at $159.3 billion
  • Average loans held for investment were $146 billion
  • Common Equity Tier 1 ratio (fully phased-in) was 9.60% as of Sep 30, 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.)

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

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