Regions Financial Should Beat Earnings Consensus
Regions Financial (NYSE: RF), an Alabama-based bank with $144 billion in assets, is expected to have a much better third quarter than it did last quarter when the bank reported a $237 million loss, or negative $0.25 in earnings per share (EPS). The average estimate among 23 analysts for Regions' Q3 earnings report (expected on Oct. 20), according to Yahoo! Finance, is $0.32 EPS. The consensus on Zacks Investment Research is $0.33 EPS among 11 analysts.
But I think this regional banking operation will be able to generate earnings toward the higher end of what analysts are projecting. Why? Because management has expressed confidence in its ability to continue paying its normal dividend. To do that under current regulations, it would have to do better than a $0.33 EPS.
Let me explain.
Source Fool.com
