Have you been eager to see how KeyCorp. KEY performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Cleveland-based bank-oriented financial services company’s earnings release this morning:
An Earnings Miss
KeyCorp came out with adjusted earnings per share of 24 cents, missing the Zacks Consensus Estimate by a penny.
Rise in expenses was largely responsible for earnings miss.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for KeyCorp depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate remained flat over the last 7 days.
Revenue Came In Higher Than Expected
KeyCorp posted total revenues of $1.04 billion, which surpassed the Zacks Consensus Estimate of $1.03 billion. Moreover, it compared favorably with the year-ago figure of $1.01 billion.
Key Stats to Note:
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Net interest income benefited from growth in average loans
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Average loans rose 5%, driven by growth in commercial, financial and agricultural loans
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Average deposits (excluding deposits in foreign office) increased 4% reflecting growth in commercial mortgage servicing business and inflows from commercial and consumer clients
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Provision for credit losses surged 154.3%, impacted by credit migration in oil and gas portfolio
Chairman and Chief Executive Officer Beth Mooney said, “While the operating environment remains challenging, our results reflect continued momentum in our core businesses and progress on our strategic initiatives.”
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for KeyCorp. 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 KeyCorp earnings report!
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