BB&T Corp Earnings: Five Straight Quarters of Double-Digit Growth

Wall St. Cheat Sheet

S&P 500 component BB&T Corporation reported net income above Wall Street’s expectations for the fourth quarter. BB&T is a financial holding company which, through its subsidiary Branch Banking and Trust, provides a range of banking services and loans to individuals and businesses.

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BB&T Earnings Cheat Sheet for the Fourth Quarter .

Results: Net income for the bank rose to $391 million (55 cents per share) vs. $208 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 88% from the year earlier quarter.

Revenue: Rose 3% to $2.41 billion from the year-ago quarter.

Actual vs. Wall St. Expectations: BBT beat the mean analyst estimate of 52 cents per share. It beat the average revenue estimate of $2.19 billion.

Quoting Management: “The year 2011 was an outstanding year for BB&T considering the challenges facing the economy and financial services industry,” said Chairman and Chief Executive Officer Kelly S. King. “We met essentially all of our strategic objectives, and are successfully emerging from the credit cycle. We are also very pleased to report a strong performance for the fourth quarter and the full year. Our fourth quarter net income available to common shareholders of $391 million reflects our strongest quarterly earnings since mid 2008. The increase was driven by improved revenues, accelerating loan growth and much improved credit quality. Adjusted revenues totaled $2.3 billion this quarter, up an annualized 12% compared to last quarter.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 74.3% and in the second quarter, the figure rose 46.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by one cent in the second quarter, and by one cent in the first quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the first quarter of the next fiscal year is 52 cents per share, up from 50 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $1.75 per to share to $1.80.

Competitors to Watch: JPMorgan Chase & Co. , Wells Fargo & Company , SunTrust Banks, Inc. , PNC Financial Services , Pinnacle Financial Partners , Regions Financial Corp. , Bank of America Corp. , First Horizon National Corp. , First Security Group, Inc. , and First Citizens BancShares Inc. .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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