Earnings Preview: KeyCorp

Jan.21.09 | About: KeyCorp (KEY)

KeyCorp (NYSE:KEY) is expected to report Q4 earnings before market open on Thursday, January 22 with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for EPS of (2c) on revenue of $1.18B. The consensus range for EPS is (30c) to 16c, while the consensus range for revenue is $1.11B to $1.20B, according to First Call. Barron's recently wrote a bullish article about them, saying: KeyCorp is abandoning some of its problematic businesses, it has a healthy banking network and a strong deposit base, and predicts that it will survive. Barron's quotes Morningstar regional bank analyst Maclovio Pina as putting the bank's true value at $16 per share.

Analyst Views

In late November Citigroup reduced its Q4 EPS estimate to 5c, and the firm lowered its 2009 EPS estimate to 25c from 50c. Citigroup also reduced its target price for KeyCorp to $12 from $15. However, Citigroup reiterates a Buy rating since the firm has confidence in the company's capital position and credit risk profile. The Wall Street Journal recently named KeyCorp one of three banks that could tempt investors since they trade below book value. On the other hand, two other regional banks have reported weaker than expected results. Regions Financial (NYSE:RF) reported Q4 EPS of (35c) versus consensus (8c), and Marshall & Ilsley (NYSE:MI) reported disappointing results and more than tripled its loan loss reserves.