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Fifth Third's (FITB) Q4 Earnings Beat Estimate, Costs Rise

Zacks Equity Research

Have you been eager to see how Fifth Third Bancorp FITB performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Ohio-based bank’s earnings release this morning:

An Earnings Beat

Fifth Third came out with adjusted earnings per share of 52 cents, surpassing the Zacks Consensus Estimate of 47 cents. The figure excludes the impact of tax legislation, gain on the sale of Vantiv shares and charge related to the valuation of the Visa total return swap. Results reflect higher net interest income along with easing margin pressure. Strong capital position was another tailwind.

How Was the Estimate Revision Trend?

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

Notably, Fifth Third has an impressive earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in two of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5.3% in the trailing four quarters.

Fifth Third Bancorp Price and EPS Surprise

Fifth Third Bancorp Price and EPS Surprise | Fifth Third Bancorp Quote

Revenues Came In Below Than Expected

Fifth Third posted adjusted revenues of $1.54 billion, up nearly 1% year-over-year. However, the reported figure lagged the Zacks Consensus Estimate of $1.58 billion.

Key Stats:

  • Non-Interest Expenses increased 12% on a year-over-year basis
  • Provision for loan and lease losses rose 24% year over year to $67 million
  • Net Interest Margin (taxable equivalent) came in at 3.02%, up 16 basis points year over year

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Fifth Third. 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.

(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 Fifth Third earnings report!

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