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Based in Charlotte, North Carolina, Truist Financial Corporation (TFC) is a financial services company that provides banking and trust services. With a market cap of $55.9 billion, the company operates through three segments, which are Consumer Banking and Wealth; Corporate and Commercial Banking; and Insurance Holdings. It is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 17.
Ahead of this event, analysts expect the financial services firm to report a profit of $0.89 per share, up nearly 6% from $0.84 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters while missing on one other occasion. In Q2, the company reported an EPS of $0.91, which surpassed the consensus estimates by 8.3%.
For fiscal 2024, analysts expect TFC to report an EPS of $3.55, down 1.1% from $3.59 in fiscal 2023. However, EPS is expected to grow 11.6% year-over-year to $3.96 in fiscal 2025.
Shares of Truist Financial have increased 13.1% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 19.7% rise and the Financial Select Sector SPDR Fund’s (XLF) 20% return over the same period.
On Jul. 22, shares of TFC rose 3.2% after its Q2 earnings release as both its revenue of around $5 billion and earnings of $0.91 per share surpassed the Wall Street estimates. The better-than-expected performance was primarily driven by a strong growth in its investment banking and trading revenues, higher adjusted non-interest income, and a decline in adjusted expenses, offsetting a year-over-year decline in net interest income. The company’s $5 billion stock buyback plan further enhanced investor confidence.
Analysts' consensus view on Truist Financial stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, eight recommend a "Strong Buy," three suggest "Moderate Buy," and 11 indicate a “Hold” rating. This configuration is slightly less bullish than three months ago, with nine analysts suggesting a "Strong Buy."
The average analyst price target for TFC stock is $46.99, indicating a 12.5% potential upside from the current levels.
On the date of publication, Sohini Mondal 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.
