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SunTrust's (STI) Q2 Earnings Decline Y/Y, Expenses Rise

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Have you been eager to see how SunTrust Banks (STI - Free Report) performed in Q2 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:

Earnings Decline Year Over Year

SunTrust’s adjusted earnings per share of $1.44 declined 3.4% from the year-ago quarter’s reported figure.

Rise in expenses, partly offset by higher revenues hurt results.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for SunTrust depicted a bearish stance prior to the earnings release. The Zacks Consensus Estimate declined nearly 2% over the past 30 days.

Notably, SunTrust has an impressive earnings surprise history. The company delivered positive surprises in all of the trailing four quarters, with average beat of 6.9%.

SunTrust Banks, Inc. Price and EPS Surprise
 

SunTrust Banks, Inc. Price and EPS Surprise

SunTrust Banks, Inc. price-eps-surprise | SunTrust Banks, Inc. Quote

Revenues Came in Higher Than Expected

SunTrust posted net revenues of $2.56 billion, which beat the Zacks Consensus Estimate of $2.39 billion.
   
Key Q2 Statistics:

  • Net interest margin (FTE basis) was 3.16%, down 12 basis points year over year
  • Provision for credit losses was $127 million, up significantly year over year
  • Average consumer and commercial deposits stood at $159.9 billion
  • Average loans held for investment were $156.2 billion
  • Common Equity Tier 1 ratio was 9.19% as of Jun 30, 2019

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. Now, 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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