Regions Financial (RF) Stock Slides Despite In-Line Q2 Earnings

Regions Financial (RF) stock is falling on Tuesday afternoon even though the bank posted in-line earnings per share and better-than-expected revenue for the 2016 second quarter.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Regions Financial (RF) - Get Report are down 2.24% to $8.94 early Tuesday afternoon even though the company reported earnings that matched analysts' expectations and delivered slightly higher-than-expected revenue for the 2016 second quarter.

Before today's market open, the Birmingham, AL-based bank reported 20 cents per diluted share, which matched analysts' projections.

Revenue declined 2.4% to $1.4 billion from last year, but was higher than Wall Street's estimates of $1.37 billion.

Regions said its revenue fell during the period as it continues to shutter branches and reduce expenses.

The company booked a $22 million charge related to the planned closure of 60 branches and $1 million in severance expenses related to its cost cutting plan.

Regions announced plans in November to reduce $300 million in expenses through 2018.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations.

But the team also finds that the stock has had a generally disappointing performance in the past year.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: RF

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