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Based in Cincinnati, Ohio, Fifth Third Bancorp (FITB) is a leading regional financial services company operating across various markets in the United States. With a market cap of $25.30 billion, Fifth Third Bancorp is known for its comprehensive range of banking and financial solutions, including personal banking, business banking, and wealth management services. The company is set to announce its fiscal Q2 earnings results before the market opens on Friday, July 19.
Ahead of the event, analysts expect FITB to report a profit of $0.83 per share, down 4.6% from $0.87 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. Its adjusted earnings of $0.76 per share for the last reported quarter beat the consensus estimate by 7%. Fifth Third Bancorp exceeded expectations in Q1 2024, driven by stable net interest income and increased noninterest income, despite a slight year-over-year decline in total revenues.
For fiscal 2024, analysts expect FITB to report EPS of $3.28, down 7.6% from $3.55 in fiscal 2023.
FITB stock is up 7% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 15.6% gains. The stock has also underperformed the iShares U.S. Financial Services ETF (IYG), which returned 10.7% over the same time frame.
Fifth Third Bancorp has outperformed the broader markets over the past year, driven by robust growth prospects in high-growth regions like the Southeast, a solid balance sheet with low exposure to commercial real estate (CRE), and successful digital transformation efforts. The company's excellent customer service and strategic fintech investments further bolster its performance. FITB reported Q1 results on Apr. 19 and saw a 5.9% surge in share price on the day of the earnings release.
The consensus opinion on FITB stock is optimistic, with an overall “Moderate Buy” rating. Out of 24 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 10 recommend a “Hold.” This configuration is slightly more bullish than three months ago when the stock had 12 “Strong Buy” ratings.
The average analyst price target for FITB is $39.50, indicating a potential upside of 6.8% 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.
