The company reported a first quarter profit increase of $501 million, or $0.69 per share.
However, according to Bloomberg, a survey of 32 analysts estimated an increase of $0.70.
The company also reported a decrease of 6.7% to $2.3 billion in revenue due to a decline in fees tied to home lending.
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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 expanding profit margins, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. 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:
- The gross profit margin for BB&T CORP is currently very high, coming in at 89.52%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.77% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 249.12% to $3,589.00 million when compared to the same quarter last year. Despite an increase in cash flow of 249.12%, BB&T CORP is still growing at a significantly lower rate than the industry average of 385.82%.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
- BB&T CORP has improved earnings per share by 5.6% 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, BB&T CORP reported lower earnings of $2.18 versus $2.70 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.18).
- The net income growth from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 7.1% when compared to the same quarter one year prior, going from $536.00 million to $574.00 million.
- You can view the full analysis from the report here: BBT Ratings Report