This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Regions Financial: Another Bank Earnings Loser

NEW YORK ( TheStreet) -- Regions Financial (RF - Get Report) was the loser among the largest U.S. financial companies on Tuesday, with shares sliding 8% to close at $6.54.

The Dow Jones Industrial Average was down 243 points to close at 13,102.61, while the S&P 500 (SPX.X) was down 20.7 points to close at 1,413.12, and the NASDAQ Composite pulled back 1%, after the disappointing third-quarter earnings reports continued.

Shares of du Pont (DD - Get Report) dropped 9% to close at $45.25, after the diversified industrial company reported third-quarter earnings of $10 million, or a penny a share, declining from $452 million, or 48 cents a share, during the third quarter of 2011. The company said that "earnings from continuing operations, excluding significant items, were $.32 per share versus $.60 per share in the prior year."

Du Pont reported third-quarter net sales of $7.4 billion, declining from $8.1 billion a year earlier, "primarily reflecting volume declines in Electronics & Communications and Performance Chemicals, particularly in Asia Pacific."

The company also announced a restructuring plan, expected to "deliver pre-tax cost savings of about $450 million ($300 million in 2013) by eliminating corporate costs supporting Performance Coatings and taking additional cost-cutting actions to improve competitiveness." The actions will include 1,500 employee layoffs "globally in the next 12-18 months."

Du Pont also said it expected full year earnings from continuing operations ranging from $3.25 to $3.30 a share for all of 2012. CEO Ellen Kullman said that "continuing macroeconomic uncertainty and resulting slowing demand in certain sectors are reminders of why agility and productivity must be a way of life."

Turning to the financials, the KBW Bank Index (I:BKX) fell 2% to close at 49.55, with all but three of the 24 index components showing declines for the session.

Regions Surprises

Regions Financial of Birmingham, Ala., reported third-quarter net earnings from continuing operations available to common shareholders of $312 million, or 22 cents a share, increasing from $280 million, or 20 cents a share, the previous quarter, and $87 million, or seven cents a share, during the third quarter of 2011.

The third-quarter results beat the consensus estimate among analysts polled by Thomson Reuters by a penny, as mortgage banking income grew to $106 million, from $90 million the previous quarter, and $68 million a year earlier, however, investors were surprised to see the company's net interest margin decline by eight basis points from the previous quarter, to 3.08%.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DD $71.71 -0.44%
RF $9.32 0.70%
AAPL $124.34 0.78%
FB $83.15 0.28%
GOOG $555.74 -0.54%


DOW 17,689.94 -28.60 -0.16%
S&P 500 2,057.70 -3.35 -0.16%
NASDAQ 4,865.3180 -11.2010 -0.23%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs