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Fifth Third (FITB) Q4 Earnings Lag Estimates, Revenues Up

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Have you been eager to see how Fifth Third Bancorp (FITB - Free Report) performed in Q4 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 Miss

Fifth Third came out with adjusted earnings per share of 68 cents (excluding certain one-time items), lagging the Zacks Consensus Estimate of 73 cents. Results were affected by elevated expenses and provisions, partly offset by higher revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Fifth Third depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged at 73 cents over the last seven days.

Notably, Fifth Third has an impressive earnings surprise history. Before posting earnings miss in Q4, the company delivered positive surprises all the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5% in the trailing four quarters.

Fifth Third Bancorp Price and Consensus

Revenue Came In Better Than Expected

Fifth Third posted revenues of $2.27 billion, easily surpassing the Zacks Consensus Estimate of $2.08 billion. Also, revenues were up 37% year over year.

Key Stats:

  • Net interest margin (FTE) came in at 3.27%, down 2 basis points from year-ago quarter.
  • Provision for credit losses increased 67% year over year to $162 million.
  • Return on average assets increased to 1.72% from 1.25% 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 unfavorable, 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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