Regional banking company Regions Financial (NYSE: RF) will be announcing earnings results tomorrow morning. Here’s what to look for.
Regions Financial missed analysts’ revenue expectations last quarter, reporting revenues of $1.89 billion, up 3.6% year on year. It was a softer quarter for the company, with a miss of analysts’ tangible book value per share estimates and 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 for active Edge members.
This quarter, the market is expecting Regions Financial’s revenue to grow 1.5% year on year, slowing from the 6.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Regions Financial has missed Wall Street’s revenue estimates multiple 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. M&T Bank delivered year-on-year revenue growth of 5.5%, beating analysts’ expectations by 2.5%, and Citizens Financial Group reported revenues up 12.1%, topping estimates by 1.6%.
Read our full analysis of M&T Bank’s results here and Citizens Financial Group’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 6.6% on average over the last month. Regions Financial is up 7.4% during the same time and is heading into earnings with an average analyst price target of $31.82 (compared to the current share price of $30.78).
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