NEW YORK (TheStreet) -- KeyCorp (KEY - Get Report) was trading higher on heavy volume during Tuesday's session. By mid-afternoon, shares had climbed 3.3% to $13.99, and 12.2 million shares had changed hands compared to the three-month daily average of 8.58 million.
The Cleveland-based bank holding company is due to report fourth-quarter and full-year results before the bell on Thursday.
Analysts surveyed by Thomson Reuters expect net income for the quarter ended December of 24 cents a share on $1.03 billion in revenue. For fiscal 2013, analysts anticipate net income of 95 cents a share on $4.09 billion in revenue.
TheStreet Ratings team rates KEYCORP as a Buy with a ratings score of B. The team has this to say about their recommendation:
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"We rate KEYCORP (KEY) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.86% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KEY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Banks industry average. The net income increased by 24.2% when compared to the same quarter one year prior, going from $219.00 million to $272.00 million.
- The gross profit margin for KEYCORP is currently very high, coming in at 91.23%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 24.59% trails the industry average.
- KEYCORP has improved earnings per share by 13.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KEYCORP reported lower earnings of $0.86 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($0.95 versus $0.86).
- KEY, with its decline in revenue, slightly underperformed the industry average of 1.2%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: KEY Ratings Report