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Fifth Third (FITB) Q3 Earnings Beat on Higher Revenues

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Have you been eager to see how Fifth Third Bancorp (FITB - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Ohio-based bank’s earnings release this morning:

An Earnings Beat

Fifth Third came out with adjusted earnings per share of 64 cents, beating the Zacks Consensus Estimate of 63 cents.

Results were aided by higher revenues, partly offset by increase in provisions and higher expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Fifth Third was bearish prior to the earnings release. The Zacks Consensus Estimate moved 1.6% lower over the last 30 days.

Notably, Fifth Third has an impressive earnings surprise history. Before posting earnings beat in Q3, the company delivered positive surprises in each of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 10% in the trailing four quarters.

Fifth Third Bancorp Price and EPS Surprise

 

Fifth Third Bancorp Price and EPS Surprise | Fifth Third Bancorp Quote

Revenue Came In Line with Expectation

Fifth Third posted adjusted revenues of $1.63 billion, in line with the Zacks Consensus Estimate. Also, revenues were up 5.2% year over year.

Key Stats:
 

  • Including one-time items, earnings per share would have been 61 cents, down 55% year over year
  • Net income available to common shareholders declined 58% year over year to $418 million.
  • Provision for loan and lease losses increased 28% year over year to $86 million.
  • Non-interest expenses of $1 billion rose 3% from the year-ago quarter
  • Return on average assets decreased to 1.21% from 2.85% in the prior year quarter.


What Zacks Rank Says

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

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