Regions Financial Set to Reveals Q4 Earnings Amid Mixed Performance
Regions Financial Corporation (RF), valued at $21.4 billion and based in Birmingham, Alabama, is a key player in providing banking and financial services to both individuals and corporations. The company operates through three major segments: Corporate Bank, Consumer Bank, and Wealth Management. As anticipation builds, Regions will announce its fourth-quarter results before markets open on Friday, January 17.
Analysts Predict Steady Earnings Growth
Analysts project that Regions will report an adjusted profit of $0.55 per share, which marks a 5.8% increase from the $0.52 per share it reported in the same quarter last year. The company has displayed a mixed performance in earnings surprises, exceeding Wall Street’s expectations three times over the past four quarters, while falling short once. In the last reported quarter, Regions produced an adjusted EPS of $0.57, showcasing an impressive year-over-year growth of 16.3% and beating estimates by 7.6%.
Future Forecasts Suggest Fluctuating Earnings
Looking ahead to fiscal 2024, Regions’ adjusted EPS is expected to decline by 5.4%, from $2.24 in fiscal 2023 to $2.12. However, a recovery is anticipated in 2025, with an expected growth of 7.6%, bringing the adjusted EPS to $2.28.
Stock Performance Analysis
Over the past year, RF stock has risen 21.4%, which is slightly below the S&P 500 Index’s gain of 23.3% and the Financial Select Sector SPDR Fund’s increase of 28.5% within the same period.
Mixed Q3 Results Impact Investor Sentiment
Despite surpassing earnings expectations, Regions Financial’s stock saw a minor decline following its Q3 results announcement on October 18. The company reported a 5.7% year-over-year drop in net interest income, totaling $1.2 billion, largely attributed to lower loan volumes. Additionally, deposits in the Consumer Bank segment fell by 2.6% from a year ago, amounting to $78.9 billion. The overall improvement in non-GAAP profitability stemmed from gains in non-interest income, coupled with a slight decrease in total non-interest income, which settled at $1.1 billion.
Analysts Show Cautious Optimism
The consensus among analysts regarding RF stock leans towards a “Moderate Buy” rating. Out of 23 analysts covering the stock, 10 have issued a “Strong Buy,” two prefer a “Moderate Buy,” 10 suggest a “Hold,” and one recommends a “Strong Sell” rating. Regions has a mean price target of $28.07, indicating a potential 19.3% upside from its current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
