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KeyCorp (KEY) Q3 Earnings Beat Estimates, Expenses Decline

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Have you been eager to see how KeyCorp (KEY - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Cleveland-based bank-oriented financial services company’s earnings release this morning:

An Earnings Beat

KeyCorp came out with adjusted earnings per share of 48 cents, which surpassed the Zacks Consensus Estimate of 47 cents.

Rise in revenues along with lower expenses aided results.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for KeyCorp depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained unchanged over the last seven days.

Before reporting Q3 earnings, the company delivered positive surprises in two and matched in one of trailing four quarters, as shown in the chart below:

KeyCorp Price and EPS Surprise

KeyCorp Price and EPS Surprise

KeyCorp price-eps-surprise | KeyCorp Quote

Overall, the company has a negative earnings surprise of 0.1% in the trailing four quarters.

Revenue Came In Lower Than Expected

KeyCorp posted total revenues of $1.63 billion, which was below the Zacks Consensus Estimate of $1.64 billion.

Key Q3 Stats to Note:

  • Net income (after considering non-recurring items) was $483 million or 38 cents per share
  • Net interest margin (tax-equivalent) decreased 18 basis points year over year to 3.00%
  • Expenses declined 2.6% from the year-ago quarter to $939 million
  • Provision for credit losses increased significantly from the year-ago quarter to $200 million
  • Average loans were $92 billion
  • Average deposits stood at $110.3 billion

What Zacks Rank Says

Currently, KeyCorp has a Zacks Rank #3 (Hold). 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 KeyCorp earnings report!

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