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Alabama-based Regions Financial Corporation (RF) is a leading financial services company boasting a strong network of banking and financial solutions across the southeastern United States. With a market cap of $18.40 billion, Regions Financial offers a comprehensive suite of services, including traditional banking, wealth management, and mortgage products. The company is set to report its fiscal second-quarter earnings for 2024 before the market opens on Friday, Jul. 19.
Ahead of the event, analysts expect RF to report a profit of $0.49 per share, down 17% from $0.59 per share in the year-ago quarter. In the last four quarters, the company has missed Wall Street’s bottom-line estimates in three and surpassed on another occasion.
Its adjusted earnings of $0.44 per share for the last reported quarter missed the consensus estimate by 4.4%. Regions Financial experienced a revenue decline primarily due to a lower efficiency ratio and higher non-performing assets, while the net interest margin slightly exceeded expectations.
For fiscal 2024, analysts expect RF to report EPS of $1.96, down 12.5% from $2.24 in fiscal 2023. Fiscal 2025 EPS is expected to grow 12.2% year over year to $2.20.
RF stock is up 2.6% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.1% returns. However, the stock has outperformed the iShares U.S. Regional Banks ETF’s (IAT) marginal decline over the same time frame.
On Apr. 19, RF shares declined more than 2% after the company projected that its second-quarter net interest income would be flat to down 2% compared to the first quarter. However, the company reported revenue of $2.29 billion for the period. Excluding interest expenses, its net revenue was $1.75 billion, aligning with Street forecasts.
However, the consensus opinion on RF stock is optimistic, with an overall “Moderate Buy” rating. Out of 26 analysts covering the stock, eight advise a “Strong Buy” rating, one recommends a “Moderate Buy,” 16 analysts suggest a “Hold,” and one gives a “Strong Sell.” The average analyst price target for RF is $21.29, indicating a potential upside of 7% 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.
