Earnings Preview: Regions Financial

| About: Regions Financial (RF)

Regions Financial Corp. (NYSE:RF) is slated to report Q1 earnings before the market open on Tuesday, April 21 with a conference call scheduled for 11:00 am ET.

Guidance

Analysts are looking for EPS of (39c) on revenue of $1.6B. The consensus range is (75c)-1c for EPS, and $1.51B-$1.85B for revenue, according to First Call.

Analyst Views

Regions announced through an SEC filing last week that it would report a profit for the first quarter. The bank added that it expects to repay the funds it received through TARP "as soon as possible." Regions, which said that its deposits had continued to increase this year, disclosed that it was taking "substantial steps" to reduce its credit risks.

However, two research firms have not been optimistic about Regions Financial in recent weeks. Keefe Bruyette downgraded the stock to Market Perform from Outperform, citing valuation. FTN Equity initiated Regions with a Neutral rating, as the firm thinks the bank is under pressure, with just enough capital to pass the firm's stress test. On a positive note, FTN did predict that the bank would weather the storm and it believes the stock's long-term valuation is attractive.

Regions reduced its quarterly dividend to 1c from 10c on April 16.