Regional banking company KeyCorp (NYSE:KEY) will be announcing earnings results this Tuesday before market open. Here’s what to expect.
KeyCorp beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.76 billion, up 15.9% year on year. It was a strong quarter for the company, with a solid beat of analysts’ tangible book value per share estimates and a decent beat of analysts’ EPS estimates.
Is KeyCorp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting KeyCorp’s revenue to grow 19.2% year on year to $1.80 billion, a reversal from the 5.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 9 downward revisions over the last 30 days (we track 11 analysts). KeyCorp has missed Wall Street’s revenue estimates three times over the last two years.
Looking at KeyCorp’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Capital Bank delivered year-on-year revenue growth of 15.2%, beating analysts’ expectations by 2.7%, and Nicolet Bankshares reported revenues up 12.7%, topping estimates by 4.4%. Texas Capital Bank traded up 4.8% following the results while Nicolet Bankshares was also up 7.8%.
Read our full analysis of Texas Capital Bank’s results here and Nicolet Bankshares’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 7.7% on average over the last month. KeyCorp is up 11.7% during the same time and is heading into earnings with an average analyst price target of $20.31 (compared to the current share price of $18.42).
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