Earnings Preview: KeyCorp

| About: KeyCorp (KEY)

KeyCorp (NYSE:KEY) is expected to report Q3 earnings on Wednesday, October 21 before the market open, with a conference call scheduled for 9 am ET.


Analysts are looking for EPS of (41c) on revenue of $1.11B. The consensus range is (62c)-(25c) for EPS and $1.07B-$1.16B for revenue, according to First Call.

Analyst Views

FBR Capital recently reinstated KeyCorp with a Market Perform rating and a $7 target. The firm placed the bank in the "medium risk, medium reward category." KeyCorp can handle the sizable losses it will likely generate, but the losses and deleveraging will pull down the stock's valuation going forward, FBR predicts. The firm expects the bank to finish 2009 with EPS of ($2.55). A number of other firms share FBR Capital's outlook on Keycorp, as UBS has recently initiated KeyCorp with a Neutral rating, Morgan Keegan initiated the bank with a Market Perform rating on September 25, Collins Stewart started the bank with a Hold rating on September 23, and Wells Fargo started KeyCorp with a Market Perform rating on September 22. The outlier is Bank of America/Merrill, which started KeyCorp with a Buy rating and $8 target on October 13.