Have you been eager to see how BB&T Corporation BBT performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this North Carolina-based diversified financial holding company’s earnings release this morning:
An Earnings Beat
BB&T came out with adjusted earnings per share of 69 cents, which surpassed the Zacks Consensus Estimate of 64 cents.
A rise in top line was mainly responsible for earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for BB&T depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable lower over the last 7 days.
Notably, BB&T does not have a decent earnings surprise history. Before posting the earnings beat in Q1, the company delivered negative surprises in three of the prior four quarters. Hence, the company missed the Zacks Consensus Estimate by an average of 1.47% in the trailing four quarters.
Revenue Came In Higher Than Expected
BB&T posted total revenues of $2.58 billion, which marginally surpassed the Zacks Consensus Estimate of $2.57 billion. Moreover, it came 10% above the year-ago number.
Key Statistics to Note:
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Efficiency ratio of 58.3%
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Average loans and leases held for investment were $134.4 billion as of Mar 31, 2016
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Average deposits were $149.9 billion as of Mar 31, 2016
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Dividend payout ratio of 40.3% as of Mar 31, 2016
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Common equity Tier 1 ratio under Basel III, on a fully-phased in basis, was 10.2% as Mar 31, 2016
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for BB&T. 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.
Check back later for our full write up on this BB&T earnings report!
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BB&T CORP (BBT): Free Stock Analysis Report
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