Analysts expect Truist Financial to report earnings of $0.87 per share, with revenues around $5 billion, reflecting a year-over-year decline.
Charlotte: Wall Street is buzzing about Truist Financial’s upcoming earnings report. Analysts are predicting that the company will post earnings of $0.87 per share, which is a nice bump of 7.4% from last year. However, revenues are expected to dip to around $5 billion, down 12.3% from the same quarter last year.
Interestingly, the earnings estimate has been slightly adjusted upward by 0.2% over the last month. This shows that analysts are rethinking their earlier predictions, which is always a good sign to keep an eye on.
Before the earnings drop, it’s crucial to consider any changes in earnings estimates. This can really help in figuring out how investors might react to the stock. Research has shown that there’s often a strong link between these estimate changes and how a stock performs in the short term.
While most folks look at the overall earnings and revenue numbers, digging into specific metrics can give us some cool insights. So, let’s break down what analysts are saying about Truist Financial’s key metrics.
For starters, analysts think that the total nonperforming assets will hit $1.53 billion, which is a bit higher than the $1.49 billion reported last year.
They also expect the average balance of total earning assets to be around $468.30 billion, down from $481.35 billion last year.
As for the efficiency ratio, it’s projected to be 59.8%, a big drop from the whopping 180.4% reported last year.
When it comes to total nonaccrual loans and leases, analysts are estimating it will reach $1.45 billion, slightly up from $1.43 billion last year.
Looking at the Tier 1 leverage ratio, they expect it to be around 10.4%, which is an improvement from 9.3% last year.
The Tier 1 capital ratio is expected to be 12.8%, down from 13.7% in the same quarter last year.
Analysts are also predicting the total capital ratio will be about 15.0%, compared to 13.7% last year.
For total noninterest income, they expect it to come in at $1.44 billion, a significant drop from $2.16 billion last year.
Net interest income is projected to be around $3.60 billion, which is the same as last year’s figure.
They also expect net interest income to be about $3.56 billion, slightly up from $3.54 billion last year.
As for lending-related fees, analysts predict it will be around $91.34 million, down from $153 million last year.
Lastly, they expect other income to reach $92.96 million, up from $64 million last year.
In the past month, Truist Financial shares have dipped by 4.8%, while the S&P 500 has seen a smaller decline of 3.5%. With a Zacks Rank of #3 (Hold), it looks like TFC will likely move in line with the market in the near future.
