BB&T Corp Q1 Profit Falls 51% on Tax Adjustment; Adjusted Net Tops Views, Revenue In-Line (BBT)

Financial services company BB&T Corporation (BBT) reported before the bell on Thursday that it saw a significantly lower first quarter profit, reflecting an earlier announced negative tax adjustment. However, revenues were able to rise and came in-line with analysts’ views.

The Winston-Salem, North Carolina-based company said its first quarter net income fell 51% to $210 million, or 29 cents per share, down from $431 million, or 61 cents per share, in the same quarter last year.

However, the past quarter’s result included the negative impact of a previously announced $281 million adjustment related to a disputed tax liability. Excluding this adjustment, BBT said its first quarter net income was $491 million, or 69 cents per share. This beat analysts’ views, as those polled by Thomson Reuters were expecting the company to earn 63 cents per share in the quarter.

The company’s first quarter revenue rose 5% to $2.46 billion from $2.34 billion last year; this was in-line with analysts’ views. Reasons for the uptick in revenue, according to the company, were the acquisition of Crump Insurance and 5% organic growth in commercial property and casualty premiums.

Furthermore, the company’s net interest margin, which measures the profitability of loans for financial services companies, fell to 3.76% from 3.93% last year.

BB&T shares were inactive during pre-market trading on Thursday. The stock is up +3.13% year-to-date.

The Bottom Line
Shares of BB&T Corp (BBT) have a dividend yield of 3.06% based on last night’s closing price of $30.02 and the company’s annualized dividend payout of 92 cents per share.

BB&T Corporation (BBT) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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