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Ohio-based KeyCorp (KEY), with a market cap of $13.5 billion, provides a diverse range of services, including commercial and retail banking, leasing, investment management, consumer finance, and investment banking across various states. Through its advisors and subsidiaries, it offers personal and corporate trust services, financial services, mutual fund access, cash management, capital markets, and international banking. The company is expected to announce its fiscal Q2 earnings results on Thursday, Jul. 18.
Ahead of the event, analysts expect KEY to report a profit of $0.25 per share, down 7.4% from $0.27 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters and missed on two occasions. It reported an EPS of $0.22 in the latest quarter, 4.4% below the consensus estimate.
While Wall Street expects KeyCorp's EPS to decline by 8.9% from $1.24 in fiscal 2023 to $1.13 in fiscal 2024, the company is projected to rebound strongly in fiscal 2025 with a 44.3% increase to $1.63.
KEY stock has surged 49.1% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 24.3% gains and the Financial Select Sector SPDR Fund’s (XLF) 22.6% returns over the same time frame.
However, the stock declined marginally following its Q1 earnings release on April 18, as the company failed to surpass both the consensus bottom-line and top-line estimates. Lower net interest income and increased expenses negatively affected KeyCorp’s results. Higher deposit costs and a lower average loan balance also pressured the net interest margin despite higher interest rates.
Analysts' consensus view on KeyCorp stock is cautiously optimistic overall, with a "Moderate Buy" rating. Among 23 analysts covering the stock, 13 recommend a "Strong Buy," two suggest a “Moderate Buy,” and the remaining eight advise a "Hold."
The average analyst price target for KEY is $16.55, suggesting a potential upside of 16% from the current price levels.
On the date of publication, Kritika Sarmah 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.
