Markets
KEY

KeyCorp Q3 Earnings Miss on Higher Provisions

Have you been eager to see how KeyCorp.KEY performed in Q3 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 Miss

KeyCorp came out with earnings per share of 26 cents, missing the Zacks Consensus Estimate by a penny.

Higher revenues were more than offset by increased expenses and substantial rise in provisions.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for KeyCorp depicted pessimism prior to the earnings release. The Zacks Consensus Estimate declined marginally over the last 7 days.

However, KeyCorp has an unimpressive earnings surprise history. Before posting an earnings miss in Q3, the company has delivered positive earnings surprise in only one of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 1.03% in the trailing four quarters.

Revenues Meet Expectations

KeyCorp posted total revenues of $1.06 billion in line with the Zacks Consensus Estimate. Moreover, it compared favorably with the year-ago figure of $992 million.

Key Stats to Note:

Revenues jump 7% year over year

Strong rise in core fee-based revenues, non-interest income soars 12.7%

Expenses up 2.5%-- includes pension settlement charge of $19 million

Positive operating leverage relative to year-ago quarter

Provisions surge 137% to $45 million

Investment banking and debt placement fees primarily drove the rise, jumping 23.9% year over year; followed by 15.4% rise in card fees and 9% rise in trust and investment banking fees.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for KeyCorp. 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.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KEYCORP NEW (KEY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

KEY

Other Topics

Earnings Investing Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More