Have you been eager to see how SunTrust Banks, Inc. (STI – Analyst Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Atlanta-based commercial banking organization’s earnings release this morning:

Earnings

SunTrust came out with earnings per share of 91 cents. The results included 3 cents per share in discrete tax benefits. The Zacks Consensus Estimate was 87 cents.

Results reflected stable revenues and a fall in operating expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for SunTrust depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 87 cents over the last 7 days.

However, SunTrust has a decent earnings surprise history. Before posting earnings in Q4, the company delivered positive surprises in all four prior quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 12.17% in the trailing four quarters.

Revenues

SunTrust posted net revenue of $2.05 billion, which surpassed the Zacks Consensus Estimate of $2.03 billion. Further, it was almost at par with the year-ago number.

Key Statistics:

  • Average client deposits stood at $148.2 billion as of Dec 31, 2015
  • Average loan balances were $1352 billion as of Dec 31, 2015
  • Common Equity Tier 1 (“CET1”) (transitional) was 9.95%
  • During the quarter, SunTrust repurchased $214 million shares.

    • What Zacks Rank Says

    The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for SunTrust. 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.

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