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KeyCorp (KEY) Meets Q2 Earnings Expectations, Costs Rise

Zacks Equity Research

Have you been eager to see how KeyCorp KEY performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Cleveland-based bank-oriented financial services company’s earnings release this morning:

An Earnings Match

KeyCorp came out with adjusted earnings per share of 44 cents, which was in line with the Zacks Consensus Estimate.

Rise in net interest income offset by higher expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for KeyCorp depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate have remained stable over the last seven days.

KeyCorp have an impressive earnings surprise history. Before reporting Q2 earnings, the company delivered positive surprises in three of trailing four quarters, as shown in the chart below:

KeyCorp Price and EPS Surprise

 

KeyCorp Price and EPS Surprise

KeyCorp price-eps-surprise | KeyCorp Quote

Overall, the company has a positive earnings surprise of 1.1% in the trailing four quarters.

Revenue Came In Lower Than Expected

KeyCorp posted total revenues of $1.61 billion, which was below the Zacks Consensus Estimate of $1.62 billion.

Key Q2 Stats to Note:
 

  • Net income (after considering non-recurring items) was $403 million or 40 cents per share
  • Net interest margin decreased 13 basis points year over year to 3.06%
  • Expenses rose 2.6% from the year-ago quarter to $1.02 billion
  • Provision for credit losses increased 15.6% from the year-ago quarter to $74 million
  • Average loans were $90.8 billion
  • Average deposits stood at $109.6 billion


What Zacks Rank Says

Currently, KeyCorp has a Zacks Rank #3 (Hold). 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.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this KeyCorp earnings report!

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