SunTrust Banks Earnings: Here’s Why the Stock is Up Now
SunTrust Banks, Inc. (NYSE:STI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.04%.
SunTrust Banks, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 36.96% to $0.63 in the quarter versus EPS of $0.46 in the year-earlier quarter.
Revenue: Decreased 12.37% to $2.11 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: SunTrust Banks, Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company beat the mean analyst estimate of $0.61. It missed the average revenue estimate of $2.25 billion.
Quoting Management: “First quarter 2013 earnings were notably higher than last year,” said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. “Our expenses declined meaningfully, not only related to the continued abatement of cyclically high costs, but also as a direct result of our concerted efforts to improve our efficiency.” Mr. Rogers noted that the efficiency ratio declined over five percentage points from last year and was also down from last quarter, despite lower revenue associated with mortgage production income and the effects of seasonality in other categories.”
Key Stats (on next page)…