Financial services company, SunTrust Banks, Inc. (STI) reported an increase in earnings on Wednesday, which came in above analysts estimates.
The Atlanta, GA based company reported first quarter net income of $340 million, or 63 cents per share, up 28% from $245 million, or 46 cents per share last year. Analysts expected to see earnings of 61 cents per share.
Revenue for the quarter declined by -5% to $2.114 billion, which fell below analysts estimate of $2.25 billion.
The company’s quarter was primarily effected by stronger credit and reduced expenses. William H. Rogers, the company’s CEO commented, “our expenses declined meaningfully, not only related to the continued abatement of cyclically high costs, but also as a direct result of our concerted efforts to improve our efficiency.” Mr. Rogers noted that the efficiency ratio declined.”
SunTrust shares were up 52, or 1.90% during Friday morning trading. The stock has increased 23% in the past year.
The Bottom Line
Shares of SunTrust Banks, Inc. (STI) have a 1.46% yield, based on Thursday’s closing price of $27.32.
SunTrust Banks, Inc. (STI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.