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BB&T's Third Quarter Earnings Report
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BB&T (NYSE:BBT) announced its results for the most recent quarter on October 18, 2012. BB&T is a financial holding company which, through its subsidiary Branch Banking and Trust, provides a range of banking services and loans to individuals and businesses.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Earnings: Quality Means Everything
The Numbers: Though BB&T's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported 66 cents per share versus the 69 cents per share estimate and revenues of $2.5 billion versus the $2.41 billion estimate. EPS rose 26.9% while revenue climbed 2.5% from the same period last year. BB&T's revenue has grown during each of the past three quarters on a year-over-year basis. BB&T's net income for the third quarter was $469 million, a 28.1% increase from last year. Last quarter marked the third in a row of rising net income.
Management Quote: We are pleased to report very strong results for the third quarter," said Chairman and Chief Executive Officer Kelly S. King. "BB&T's performance benefited from a 5.3% annualized increase in net interest income compared to the last quarter, a 63% increase in mortgage banking income and continued improvement in credit costs. The net interest margin remained strong at 3.94%."Loan growth improved during the quarter as average loans held for investment increased 12.6% on an annualized basis compared to the second quarter including the impact of the BankAtlantic acquisition. Organic loan growth was also strong as average loans increased 8.4% compared to last quarter on an annualized basis. This growth was led by our other lending subsidiaries, residential mortgage loans, C&I loans and sales finance loans."
A Look Back: Net income has increased 70.1% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 91.6% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the fourth quarter is 72 cents per share, up from 69 cents 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved up from $2.65 a share to $2.73 over the last ninety days.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Earnings: Quality Means Everything
The Numbers: Though BB&T's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported 66 cents per share versus the 69 cents per share estimate and revenues of $2.5 billion versus the $2.41 billion estimate. EPS rose 26.9% while revenue climbed 2.5% from the same period last year. BB&T's revenue has grown during each of the past three quarters on a year-over-year basis. BB&T's net income for the third quarter was $469 million, a 28.1% increase from last year. Last quarter marked the third in a row of rising net income.
Management Quote: We are pleased to report very strong results for the third quarter," said Chairman and Chief Executive Officer Kelly S. King. "BB&T's performance benefited from a 5.3% annualized increase in net interest income compared to the last quarter, a 63% increase in mortgage banking income and continued improvement in credit costs. The net interest margin remained strong at 3.94%."Loan growth improved during the quarter as average loans held for investment increased 12.6% on an annualized basis compared to the second quarter including the impact of the BankAtlantic acquisition. Organic loan growth was also strong as average loans increased 8.4% compared to last quarter on an annualized basis. This growth was led by our other lending subsidiaries, residential mortgage loans, C&I loans and sales finance loans."
A Look Back: Net income has increased 70.1% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 91.6% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the fourth quarter is 72 cents per share, up from 69 cents 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved up from $2.65 a share to $2.73 over the last ninety days.
by
Investopedia Staff
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