This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Bank Stocks You Need to Watch During Earnings Season (Update 1)

2. Regions Financial
Shares of Regions Financial (RF - Get Report) of Birmingham, Ala., closed at $6.75 Friday, returning 57% year-to-date, following a 38% decline during 2011.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

The shares trade for 1.1 times tangible book value, and for 8.8 times the consensus 2013 EPS estimate of 77 cents. The consensus 2012 EPS estimate is 60 cents.

After selling its Morgan Keegan brokerage subsidiary and completing a $900 million common share offering during the first quarter, Regions in early April repaid $3.5 billion in government bailout funds received during 2008 through the Troubled Assets Relief Program, or TARP.

Regions will report its second-quarter results on July 24, with analysts expecting a 14-cent profit, matching the company's first-quarter results. During the second quarter of 2011, the company earned four cents a share.

Deutsche Bank analyst Matt O'Connor rates Regions a "Hold," and said on Thursday that his firm expects Regions "to report 2Q12 EPS of $0.16 (ex a $0.05 charge related to the repayment of TARP)," and that although the company's management "still expects improvement in [net interest margin] through 2012," the margin expansion "will be back-end loaded given [that] leverage to lower deposit costs will take place in 2H12 (and 4Q12 in particular)."

Jefferies analyst Ken Usdin also has a "Hold" rating on Regions, with a $7.50 price target, estimating the company will report second-quarter earnings of 17 cents, with full-year EPS estimates of 70 cents for 2012 and 85 cents for 2013. Usdin said on Wednesday that "we believe RF can beat, as consensus looks too conservative in its loan loss provision forecast," and that "while last quarter's reserve release magnitude ($215mm) is likely unsustainable, net release should continue with RF's loan loss reserve still high at 3.4% of loans."

Usdin added that net interest income for the second quarter "could disappoint, as earning assets could be down by $1B+ and margin expansion might not emerge until the back half of the year," but also said that "even with flat net interest income, pre-provision earnings should grow [from the first quarter], as $30mm-$40mm of expenses roll off due to normal seasonality."
10 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $12.95 -2.26%
C $39.86 -2.28%
JPM $57.75 -1.11%
RF $7.80 -1.27%
WFC $47.86 -0.81%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs