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Market Overview

Earnings Outlook for Regions Financial

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On Friday, January 22, Regions Financial (NYSE:RF) will release its latest earnings report. Benzinga's outlook for Regions Financial is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Regions Financial EPS is expected to be around $0.42, according to sell-side analysts. Sales will likely be near $1.56 billion. Regions Financial earnings in the same period a year ago was $0.4 per share. Quarterly sales came in at $1.48 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 5.0% increase in the company's earnings. Revenue would be up 5.26% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.33 0.06 0.23 0.39
EPS Actual 0.52 -0.25 0.14 0.39
Revenue Estimate 1.49 B 1.47 B 1.46 B 1.48 B
Revenue Actual 1.60 B 1.54 B 1.41 B 1.48 B

Stock Performance

Shares of Regions Financial were trading at $18.145 as of January 20. Over the last 52-week period, shares are up 14.73%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Regions Financial is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings