First Horizon’s Q4 earnings show mixed results, with revenue down but EPS exceeding expectations, highlighting key financial metrics.
Memphis: First Horizon National (FHN) reported its Q4 results for December 2024. Revenue hit $729 million, which is an 8.9% drop from last year. However, their earnings per share (EPS) rose to $0.43, up from $0.32 a year ago.
They missed the revenue estimate of $822.47 million by about 11.36%. But the EPS beat expectations, which were set at $0.38, by 13.16%. Investors often look at these numbers to gauge a company’s health.
Key metrics can give a clearer picture of how a company is doing financially. Comparing these metrics to previous years and analyst estimates helps investors predict stock performance.
Here’s a quick look at how First Horizon did in the latest quarter based on important metrics that analysts keep an eye on:
- Net Interest Margin (FTE): 3.3%, matching the average estimate.
- Efficiency Ratio: 62%, slightly worse than the 60% estimate.
- Net Charge-offs to Average Loans: 0.1%, better than the 0.3% estimate.
- Average Balance – Total Interest Earning Assets: $75.74 billion, below the $76.23 billion estimate.
- Total Nonperforming Loans and Leases: $602 million, close to the $608.92 million estimate.
- Total Non-Interest Income: $99 million, significantly lower than the $195.64 million estimate.
- Net Interest Income: $630 million, slightly above the $623.27 million estimate.
- Net Interest Income (FTE): $634 million, also above the $622.82 million estimate.
- Service Charges and Fees: $53 million, below the $58.35 million estimate.
- Other Noninterest Income: $20 million, just above the $19.37 million estimate.
- Card and Digital Banking Fees: $19 million, slightly below the $19.68 million estimate.
- Mortgage Banking and Title: $8 million, below the $8.55 million estimate.
In the past month, First Horizon shares have risen by 11.9%, while the S&P 500 has dropped by 1.6%. The stock holds a Zacks Rank #2 (Buy), suggesting it might do well in the near future.
