Earnings Preview: KeyCorp

Jul.21.08 | About: KeyCorp (KEY)

KeyCorp. (NYSE:KEY) is expected to report Q2 earnings before market open Tuesday, July 22, with a conference call scheduled for 9:00 a.m. ET.

Guidance

Analysts are looking for EPS of ($2.58) on revenue of $1.19B. The consensus range for EPS is ($3.44) to (20c), while the consensus range for revenue is $1.07B to $1.26B, according to First Call. KeyCorp slashed its dividend by 50% to 18.75c per share last week.

Analyst Views

Credit Suisse previewed earnings for the top 50 U.S. regional banks early this month by predicting that 30% to 40% of them will probably need to raise additional capital. The firm forecast that investors would be skeptical about any claims by the banks that their problematic asset ratios had peaked. But Citigroup suggested at the beginning of July that Midwestern regional banks, including KeyCorp. may be able to survive the intensifying credit crunch, since they understand their customers and markets very well.