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Based in Birmingham, Alabama, Regions Financial Corporation (RF) is a financial holding company with a market cap of $20.5 billion. The company provides retail, commercial, and mortgage banking services as well as asset management, wealth management, securities brokerage, and mergers and acquisitions advisory services. RF is expected to announce its fiscal Q3 earnings results before the market opens on Friday, Oct. 18.
Ahead of this event, analysts expect the bank holding company to report a profit of $0.52 per share, up 6.1% from $0.49 per share in the year-ago quarter. However, the company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions. In Q2, the company reported an EPS of $0.52, which topped the consensus estimates by 6.1%.
For fiscal 2024, analysts expect RF to report an EPS of $2, down 10.7% from $2.24 in fiscal 2023. However, EPS is expected to grow 9.5% year-over-year to $2.19 in fiscal 2025.
Shares of Regions Financial have increased 16.1% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 19.5% rise and the Financial Select Sector SPDR Fund’s (XLF) 19.7% return over the same period.
Despite beating earnings estimates, Regions Financial's shares remained unchanged on Jul. 19 as the company reported lower-than-expected Q2 adjusted revenue of $1.7 billion, which highlighted ongoing pressures from high interest rates and reduced borrowing demand. The bank's cautious guidance for Q3 net interest income, predicting only modest increases, raised concerns about its ability to grow profitability amid economic uncertainties.
Analysts' consensus view on Regions Financial’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, eight recommend a "Strong Buy," one suggests a "Moderate Buy," 14 indicate “Hold,” and one recommends a “Strong Sell” rating. This configuration has remained fairly stable over the past three months.
The average analyst price target for RF is $24.26, indicating only an 8.2% 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.
