Regional banking company Regions Financial (NYSE: RF) will be announcing earnings results this Friday morning. Here’s what to expect.
Regions Financial missed analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.78 billion, up 2.1% year on year. It was a slower quarter for the company, with a slight miss of analysts’ net interest income estimates.
Is Regions Financial a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Regions Financial’s revenue to grow 7% year on year to $1.85 billion, a reversal from the 11.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 7 downward revisions over the last 30 days (we track 10 analysts). Regions Financial has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Regions Financial’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Fulton Financial’s revenues decreased 3.2% year on year, beating analysts’ expectations by 1.9%, and Synovus Financial reported revenues up 93.9%, topping estimates by 1.5%. Fulton Financial’s stock price was unchanged following the results.
Read our full analysis of Fulton Financial’s results here and Synovus Financial’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 10.4% on average over the last month. Regions Financial is up 11.5% during the same time and is heading into earnings with an average analyst price target of $25.48 (compared to the current share price of $24.01).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
