U.S. Markets closed

KeyCorp (KEY) Misses Q1 Earnings & Revenue Estimates

Zacks Equity Research

Have you been eager to see how KeyCorp KEY performed in Q1 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 adjusted earnings per share of 40 cents, lagged the Zacks Consensus Estimate of 42 cents.

Lower revenue hurt KeyCorp’s results.

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 posting the earnings miss in Q1, 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 Quote

Overall, the company has a positive earnings surprise of 2.3% in the trailing four quarters.

Revenue Came In Lower Than Expected

KeyCorp posted total revenues of $1.52 billion, which was below the Zacks Consensus Estimate of $1.60 billion.

Key Q1 Stats to Note:
 

  • Net income (after considering non-recurring items) was $386 million or 38 cents per share
  • Net interest margin decreased 2 basis points year over year to 3.13%
  • Provision for credit losses increased 1.6% from the year-ago quarter to $62 million
  • Average loans were $89.6 billion
  • Average deposits stood at $107.6 billion


Capital Plan Announcement

KeyCorp announced its capital plan, beginning third quarter 2019 through second quarter 2020. The plan includes a share repurchase authorization worth $1 billion and a 9% hike in quarterly dividend, subject to Board approval.

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 unfavorable, 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!

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>


Is your investment advisor fumbling your financial future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.” Click to get your free report.
 
KeyCorp (KEY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research