KeyCorp's Q4 Earnings Preview Sparks Analyst Interest

KeyCorp's upcoming earnings report on January 16 highlights anticipated profit growth to $0.33 per share, a 32% increase. The firm has shown strong past performance, beating estimates in three of four recent quarters, which may positively influence stock prices ahead of the announcement.

Date: 02-01-2025

AI Rating: 6

Earnings Per Share (EPS): Analysts expect KeyCorp (KEY) to report an EPS of $0.33 for Q4, marking a 32% increase from $0.25 in the same quarter last year. This anticipated growth can be viewed positively by investors, as it indicates an improving profitability outlook even though FY2024 projects a decline in EPS to $1.09. However, a rebound is expected in FY2025 with a notable 43.1% increase to $1.56.

Net Income: Although the report mentions a net loss of $447 million as per Q3 results, it highlights an adjusted net income of $290 million, showcasing the potential for recovery in earnings.

Revenue Growth: The revenue dropped by 55.6% YoY to $695 million in Q3, indicating a significant challenge. Nevertheless, the adjusted EPS surpassed consensus estimates, indicating operational efficiency that might mitigate revenue concerns.

Market Reaction to Historical Performance: Over the past year, KEY gained 19%, underperforming against the S&P 500 Index and IAT ETF's returns. This underperformance might affect investor sentiment leading to cautious trading behavior. Despite this, the moderate buy recommendations from analysts suggest potential positive movements.

Analyst Sentiment: The consensus rating for KEY stock is “Moderate Buy” across 18 analysts, with a 16.7% potential upside projected based on the average price target of $20. This positive rating coming into the earnings report may help boost stock prices if results meet or exceed expectations.

Stocks: KEY SPX IAT