Earnings Estimates Report: KeyCorp. (NYSE:KEY)

KeyCorp. (NYSE:KEY) reported earnings for the three months ended Mar2016 on April 21, 2016. The company earned $0.22 per share on revenue of $1.04B. Analysts had been modeling earning per share of $0.25 with $1.04B in revenue.

CLEVELAND, April 21, 2016 /PRNewswire/ — KeyCorp (KEY) announced first quarter net income from continuing operations attributable to Key common shareholders of $182 million, or $.22 per common share, compared to $224 million, or $.27 per common share, for the fourth quarter of 2015, and $222 million, or $.26 per common share, for the first quarter of 2015. During the first quarter of 2016, Key incurred merger-related expense totaling $24 million, or $.02 per common share, compared to $6 million in the fourth quarter of 2015. Excluding merger-related expense, earnings per common share were $.24 for the first quarter of 2016.

“While the operating environment remains challenging, our results reflect continued momentum in our core businesses and progress on our strategic initiatives,” said Chairman and Chief Executive Officer Beth Mooney. “Excluding merger-related expense, we generated positive operating leverage relative to the same period last year, driven by a 3% increase in revenue and well-controlled expenses. Net interest income was up 6% from last year, benefiting from growth in average loans of 5%.  Noninterest income reflects positive trends in several of our core fee-based businesses where we have continued to make investments, such as consumer and commercial payments. Our market sensitive businesses were impacted this quarter by the industry-wide slowdown in capital markets activity.  Expenses also reflect the lower level of market-related activity and our ongoing efforts to improve efficiency.”

KeyCorp. earnings per share showed an increasing trend of 1.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 132%.Analysts project EPS growth over the next 5 years at 11.05%. It has EPS annual growth over the past 5 fiscal years of 17.6% when sales declined -5.1. It reported 7.4% sales growth, and -15.9% EPS decline in the last quarter.

The stock is trading at $12.82, up 31.54% from 52-week low of $9.88. The stock trades down -16.3% from its peak of $15.7 and 10.76% above the consensus price target of $14.2. Its volume clocked up at 13.96 million shares which is higher than the average volume of 12.78 million shares. Its market capitalization currently stands at $10.85B.