Suntrust Banks Earnings: Revenue Grows After Four Straight Declines, Net Income Rises

S&P 500 (NYSE:SPY) component Suntrust Banks Inc. (NYSE:STI) reported net income above Wall Street’s expectations for the second quarter. SunTrust Banks is a financial services holding company whose businesses provide a range of financial services to consumer and corporate clients.

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Suntrust Banks Inc. Earnings Cheat Sheet

Results: Net income for Suntrust Banks Inc. rose to $275 million (50 cents per share) vs. $178 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 54.5% from the year-earlier quarter.

Revenue: Rose 2.2% to $2.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Suntrust Banks Inc. beat the mean analyst estimate of 44 cents per share. It beat the average revenue estimate of $2.16 billion.

Quoting Management: “We delivered another quarter of improved results marked by solid noninterest income growth and increased average performing loan balances, which were up nearly $10 billion from the second quarter of last year,” said William H. Rogers, Jr., chairman and chief executive officer of SunTrust Banks, Inc. “We remain focused on executing our strategies to drive better core performance and efficiency across the organization.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 14 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.

Net income has increased more than threefold year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 1337.3% from the year-earlier quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the third quarter has gone up from 48 cents per share to 50 cents. Over the past three months, the average estimate for the fiscal year has climbed from $1.75 per to share to $1.94.

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

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