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KeyCorp (KEY), headquartered in Cleveland, Ohio, is a major financial services company offering a wide range of banking and financial solutions to consumers, small businesses, and corporate clients. With a market cap of $15.43 billion, KeyCorp operates through its primary subsidiary, KeyBank, providing innovative financial services, including lending, investment management, and payment solutions. The company is scheduled to announce its Q3 earnings before the market opens on Thursday, Oct. 17.
Ahead of the event, analysts expect KEY to report a profit of $0.28 per share, down 3.5% from $0.29 in the year-ago quarter. The company has beaten Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion.
Its adjusted earnings of $0.25 per share for the last quarter surpassed the consensus estimate by 4.2%. KeyCorp's Q2 earnings beat estimates due to higher non-interest income.
For fiscal 2024, analysts expect KEY to report EPS of $1.10, down 11.3% from $1.24 in fiscal 2023.
KEY stock gained 15.6% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 19.5% gains. However, the stock has outperformed the iShares U.S. Regional Banks ETF’s (IAT) 10.5% returns over the same time frame.
KEY reported its Q2 earnings on Jul. 18. Net income of $183 million declined from $250 million in the year-ago quarter. The stock fell 4% on the earnings release day but gained in the following three trading sessions.
However, the stock rose 3.1% on Sep. 9 after the company announced the sale of its low-yielding securities portfolio worth $7 billion, resulting in an after-tax loss of $700 million, while also receiving a minority equity investment of $2.8 billion from Scotiabank to improve profitability.
The consensus opinion on KEY stock is moderately bullish, with an overall “Moderate Buy” rating. Out of 19 analysts covering the stock, nine advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and eight indicate a “Hold.” KEY's average analyst price target is $17.94, indicating a potential upside of 9.6% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
