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:
Â
An Earnings Beat
Fifth Third came out with earnings per share of 43 cents, marginally beating the Zacks Consensus Estimate of 42 cents. Â Notably the reported figure included certain one-time items.
Results were aided by lower expenses. However, the quarter reflected weak top line.
Â
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Fifth Third was stable prior to the earnings release. The Zacks Consensus Estimate remained unchanged at 42 cents over the last 7 days.
Also, Fifth Third has a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in the prior two quarters while it reported inline earnings in Q1. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5.7% in the trailing four quarters.
Â
Revenue Came In Higher Than Expected
Fifth Third posted revenues of $1.54 billion in the quarter, surpassing the Zacks Consensus Estimate of $1.51 billion. However, it compared unfavorably with the year-ago number of $1.61billion.
Â
Key Stats:
Non- interest expenses decreased 7% year over year in the quarter to $918 million.
Efficiency ratio improved to 59.6% in the quarter from 61.5% reported in the prior-year quarter.
Book Value per share at the end of the quarter was $17.35, up from $15.85 in the prior-year quarter.
Â
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for Fifth Third. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.
