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S&P 500 (NYSE:SPY) component Zions Bancorporation (NASDAQ:ZION) reported net income above Wall Street’s expectations for the second quarter. Zions Bancorporation provides a full range of banking and related services through its banking and other subsidiaries.
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Zions Bancorporation Earnings Cheat Sheet
Results: Net income for Zions Bancorporation rose to $55.2 million (30 cents per share) vs. $29 million (16 cents per share) in the same quarter a year earlier. This marks a rise of 90.3% from the year-earlier quarter.
Actual vs. Wall St. Expectations: Zions Bancorporation reported adjusted net income of 40 cents per share. By that measure, the company beat the mean estimate of 33 cents per share.
Quoting Management: “We continue to enjoy strong improvement in credit trends and expect classified loans to continue to trend lower,” said Harris H. Simmons, chairman and chief executive officer. “Furthermore, we were pleased to experience a moderate degree of loan growth primarily driven by business loan growth; however, our business customers generally remain quite cautious, which is constraining revenue growth,” continued Mr. Simmons. “Finally, supported by the continued improvement in credit quality, we believe we are on track to redeem the balance of the TARP preferred stock in the second half of 2012.”
After two quarters of falling short, the company beat estimates last quarter. In the first quarter, it missed the mark by 12 cents, and in the fourth quarter of the last fiscal year, it came in under estimates by 9 cents.
Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from 39 cents per share to 36 cents. The average estimate for the fiscal year is $1.23 per share, down from $1.40 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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