Fifth Third Bancorp (FITB) – Earnings Preview

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Fifth Third Bancorp (FITB) - Earnings Preview

Fifth Third Bankcorp (NASDASQ: FITB) is slated to release its first quarter earnings report on April 19, 2012. There were mixed estimates from different analyst groups, with estimates as high as $0.42 per share to as low as $0.29. The average estimated earnings per share is $0.35. Will the report show on-target earnings, or will it show otherwise?

What to Expect:

For the past three quarters of the last fiscal year, earnings per share of FITB were above estimates, except for the last quarter of 2011 where it fell short by only $0.01 or one cent. Second quarter estimate was $0.27 per share versus the actual earnings of $0.35, while third quarter estimate was $0.33 against the actual value was $0.40. But on the last quarter, it was almost right on target, hitting $0.33 against the estimated per-share earnings of $0.34.

Trends to Watch For:

Last fiscal year’s revenues of FITB were quite stagnant, maintaining its revenues at $1.5B per quarter, except for the third quarter where it registered slightly higher at $1.6B. Just like most of the quarters in the last fiscal year, the first quarter of this year is also expected to register at $1.5B. This estimate is also the same for the 2nd quarter of this year. By year’s end, it is estimated to roll in around $6.14 Billion in revenues.

Analyst Ratings:

Most analyst groups have come up with a consensus on buy rating for FITB. The same also hold true with most of its competitors in the industry; about 53% were given buy rating as well. Since its all time 52-week low of $9.25 on August 22, 2011, the price is in upward trend. It is now trading at $14 on the average, and the market remains strong amidst better forecast for the bank holdings industry.


The major competitors of FITB are Bank of America Corporation (NASDASQ: BAC), PNC Financial Services Group Inc. (NASDASQ: PNC), U.S. Bancorp (NASDASQ: USB), and Wells Fargo (NASDASQ: WFC). While FITB has the lowest market cap of only $13 Billion compared to the market cap of BAC at $95.73 Billion, its net income registered at $1.09B, better than the $84.00M net income of BAC.

Its quarterly revenue growth stands at 12.8%, way above the industry growth of 7.4%. The amount of earnings per share is likewise above the industry rate; and its P/E ratio is one of the lowest among the above competitors.

Recent Price Movement:

For the fiscal year 2012, FITB started at $13.08 price per share on January 3. Today, it is trading around $14; the last closing price is $14.16 on April 18. Stock price of FITB may fall or surge up, depending on the outcome of the announcement on its first quarter earnings.


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