Earnings Preview: KeyCorp

| About: KeyCorp (KEY)
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KeyCorp (NYSE:KEY) is expected to report Q2 earnings before the market open on Wednesday, July 22 with a conference call scheduled for 9 am.


Analysts are looking for EPS of (41c) on revenue of $1.10B. The consensus range for EPS is (59c) to (22c,) while the consensus range for revenue is $1.0B to $1.22B, according to First Call. Analysts predict that KeyCorp will be badly hurt by a sharp increase in commercial real estate defaults, Bloomberg reported Monday. KeyCorp has 25% of its portfolio in commercial real estate.

Analyst Views

Meanwhile, a number of research firms have had very different outlooks on KeyCorp in recent weeks. On July 7 Keefe Bruyette upgraded KeyCorp to Outperform from Market Perform, citing valuation and what the firm saw as the bank's strong capital position. However, on the same day Deutsche Bank predicted that KeyCorp's results would be among the weakest in the banking sector. In general, Deutsche has a pessimistic outlook on U.S. banks, as the firm predicted that the sector would continue to be hurt by credit pressures. Similarly, S&P recently lowered the ratings of KeyCorp and 21 other banks, as the ratings agency predicts that operating conditions for the banking industry will become less favorable than in the past.