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SunTrust (STI) Beats On Q1 Earnings, Revenues Stable Y/Y

By Kurt Osterberg · On April 20, 2018

Have you been eager to see how SunTrust Banks, Inc. (STI – Free Report) performed in Q1 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:

An Earnings Beat

SunTrust came out with earnings per share of $1.29, which surpassed the Zacks Consensus Estimate of $1.11.

Stable revenues and lower expenses mainly led to the earning beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for SunTrust depicted an optimistic stance prior to the earnings release. The Zacks Consensus Estimate moved marginally upward over the last 30 days.

Notably, SunTrust has an impressive earnings surprise history. Before posting earnings beat in Q1, the company delivered positive surprises in three of the trailing four quarters, with average beat of 3.1%.

SunTrust Banks, Inc. Price and EPS Surprise

Lower-than-Expected Revenues

SunTrust posted net revenue (on FTE basis) of $2.26 billion, which lagged the Zacks Consensus Estimate of $2.28 billion. However, it was relatively stable from the year-ago number.

Key Q1 Statistics:

Net interest margin was 3.24%, up 15 basis points year over year

Provision for credit losses was $28 million, plunging 76% year over year

Non-interest expenses were $1.42 billion, down 3% from the prior-year quarter

Average consumer and commercial deposits stood at $159.2 billion

Average loan held for investment were $142.9 billion

Common Equity Tier 1 (fully phased-in) was 9.85% as of Mar 31, 2018

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. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.