NEW YORK (TheStreet) -- BB&T (BBT) - Get Report shares are up by 1.33% to $41.77 on Wednesday afternoon, as the financial holding company is scheduled to release its second quarter earnings results before the market open tomorrow.
Analysts are expecting the bank to report a slight rise in earnings to 69 cents per share, from the 68 cents per share it reported for the year ago quarter.
Revenue for the period is also expected to increase to $2.4 billion, from the $2.3 billion the company generated last year.
Last week, BB&T received regulatory approval from the Federal Reserve to complete its acquisition of Susquehanna Bancshares (SUSQ) .
The $2.5 billion purchase will become effective on August 1.
Separately, TheStreet Ratings team rates BB&T CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BB&T CORP (BBT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, attractive valuation levels, increase in stock price during the past year and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- BB&T CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, BB&T CORP increased its bottom line by earning $2.73 versus $2.18 in the prior year. This year, the market expects an improvement in earnings ($2.83 versus $2.73).
- The gross profit margin for BB&T CORP is currently very high, coming in at 88.76%. Regardless of BBT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 21.08% trails the industry average.
- After a year of stock price fluctuations, the net result is that BBT's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: BBT Ratings Report