KeyCorp Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component KeyCorp (NYSE:KEY) will unveil its latest earnings on Thursday, July 19, 2012. KeyCorp is a financial holding company that offers its clients retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services.

KeyCorp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 18 cents per share, a decline of 30.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 19 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 16.3% versus last year to 77 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at profit of 21 cents a share versus the estimate of net income of 19 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit fell 24% to $200 million (20 cents a share) from $263 million (19 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5% to $1.16 billion from $1.22 billion.

Stock Price Performance: From June 14, 2012 to July 13, 2012, the stock price rose 57 cents (7.8%), from $7.28 to $7.85. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 13, 2012, when shares rose for six straight days, increasing 4.2% (+33 cents) over that span. It saw one of its worst periods between March 30, 2012 and April 10, 2012 when shares fell for seven straight days, dropping 5.6% (-48 cents) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 2.1% in revenue from the year-earlier quarter to $998.9 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 12.8% in the second quarter of the last fiscal year, 10.7% in third quarter of the last fiscal year and 16.8% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

An income boost this time around would be welcome news after profit drops in the past three quarters. Net income fell 0.9% in the third quarter of the last fiscal year, by 37.5% in the fourth quarter of the last fiscal year and again in the first quarter.

Analyst Ratings: There are mostly holds on the stock with 12 of 23 analysts surveyed giving that rating.

Competitors to Watch: Wells Fargo, SunTrust Banks, JPMorgan Chase, Bank of America, PNC Financial Services, Citigroup Inc., Regions Financial, Northrim BanCorp, Inc., Pacific Continental Corporation, and Zions Bancorp.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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