Truist Financial’s Q4 results show mixed performance against Wall Street expectations, with revenue down but EPS exceeding estimates.
Charlotte: Truist Financial Corporation (TFC) reported its Q4 results, showing revenue of $5.06 billion, which is down 11.2% from last year. However, their earnings per share (EPS) came in at $0.91, up from $0.81 a year ago.
Interestingly, the revenue beat Wall Street’s expectations by 1.13%, which was set at $5 billion. The EPS also surprised analysts, who estimated it at $0.87, giving a nice 4.60% surprise.
Investors usually keep an eye on these headline numbers, but it’s the underlying metrics that really tell the story. These figures help gauge how the company is doing overall and can hint at future stock performance.
So, how did Truist stack up against analyst expectations this quarter? Here are some key metrics: the net interest margin was 3.1%, matching estimates. Total nonperforming assets were $1.48 billion, slightly better than the $1.53 billion expected.
They reported net charge-offs at 0.6%, right on target with estimates. The book value per share was $43.90, a bit lower than the $44.51 analysts predicted. On the bright side, total earning assets averaged $472.64 billion, beating the $468.30 billion estimate.
Other metrics included an efficiency ratio of 60%, slightly above the 59.7% estimate, and total nonaccrual loans at $1.43 billion, also better than the $1.45 billion expected.
Looking at capital ratios, the Tier 1 leverage ratio was 10.5%, and the Tier 1 capital ratio was 12.9%, both slightly above estimates. Total capital ratio came in at 14.9%, just shy of the 15% estimate.
Truist’s total noninterest income was $1.47 billion, beating the $1.44 billion estimate, and net interest income was $3.64 billion, also above the $3.60 billion expected.
In the past month, Truist shares have gained 5.7%, while the S&P 500 composite dropped by 2.1%. Currently, Truist holds a Zacks Rank #3 (Hold), suggesting it might perform similarly to the broader market soon.
