Regional banking company Fifth Third Bancorp (NASDAQ: FITB) will be reporting earnings this Thursday before market hours. Here’s what to expect.
Fifth Third Bancorp missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $2.13 billion, up 1.8% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ tangible book value per share estimates but net interest income in line with analysts’ estimates.
Is Fifth Third Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Fifth Third Bancorp’s revenue to grow 6.7% year on year to $2.22 billion, a reversal from the 4.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.87 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 10 analysts). Fifth Third Bancorp has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Fifth Third Bancorp’s peers in the 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 FB Financial reported a revenue decline of 40.1%, falling short of estimates by 43.5%. FB Financial traded down 4.4% following the results.
Read our full analysis of Fulton Financial’s results here and FB Financial’s results here.
There has been positive sentiment among investors in the banks segment, with share prices up 8.3% on average over the last month. Fifth Third Bancorp is up 13.7% during the same time and is heading into earnings with an average analyst price target of $46.93 (compared to the current share price of $43.56).
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