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Suntrust Banks Third Quarter Earnings
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STI
Suntrust Banks (NYSE:STI) announced its results for the third quarter on October 22, 2012. SunTrust Banks is a financial services holding company whose businesses provide a range of financial services to consumer and corporate clients.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability.SEE: 12 Things You Need To Know About Financial Statements
The Numbers:
Suntrust Banks managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported $1.98 per share versus the $1.84 per share estimate and revenues of $3.84 billion versus the $3.04 billion estimate. EPS rose 407.7% while revenue climbed 75% from the same period last year. For the third quarter, the company reported profit of $1.07 billion. This is 397.7% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote:
"This quarter's actions more favorably position the Company for the future. In addition, we demonstrated another quarter of improved core performance," said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. "As we manage through the challenging revenue environment, we remain intensely focused on deepening client relationships and improving efficiency."
A Look Back:
Net income has increased 94.3% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than fourfold from the year-earlier quarter.
Looking Ahead:
Analysts have a more positive outlook for the company's next-quarter performance. Over the past month, the average estimate for the fourth quarter has gone up from 53 cents per share to 54 cents. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved up from $1.75 a share to $1.94 over the last ninety days.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability.SEE: 12 Things You Need To Know About Financial Statements
The Numbers:
Suntrust Banks managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported $1.98 per share versus the $1.84 per share estimate and revenues of $3.84 billion versus the $3.04 billion estimate. EPS rose 407.7% while revenue climbed 75% from the same period last year. For the third quarter, the company reported profit of $1.07 billion. This is 397.7% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote:
"This quarter's actions more favorably position the Company for the future. In addition, we demonstrated another quarter of improved core performance," said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. "As we manage through the challenging revenue environment, we remain intensely focused on deepening client relationships and improving efficiency."
A Look Back:
Net income has increased 94.3% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than fourfold from the year-earlier quarter.
Looking Ahead:
Analysts have a more positive outlook for the company's next-quarter performance. Over the past month, the average estimate for the fourth quarter has gone up from 53 cents per share to 54 cents. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved up from $1.75 a share to $1.94 over the last ninety days.
by
Investopedia Staff
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