La vendita allo scoperto per First Horizon dà agli investitori un'idea del grado in cui gli investitori stanno scommettendo sul declino delle azioni di First Horizon. I dati relativi alle vendite allo scoperto vengono aggiornati ogni due settimane.

First Horizon (NYSE:FHN) Azioni, Report sulle vendite allo scoperto

First Horizon

First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.

First Horizon Corp

FOSCHINI GROUP UNSP/ADR by Foschini Group Ltd. (The)

Foschini Group Ltd

First Horizon Corporation Depositary Shares, each representing a 1/400th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series B

First Horizon Corporation Depositary Shares, each representing a 1/400th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C

First Horizon Corporation Depositary Shares, each representing a 1/4,000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series E

First Horizon Corporation Depositary Shares, each representing 1/4000th Interest in a Share of Non-Cumulative Perpetual Preferred Stock, Series F

WIIM

EWBC

SCHW

TBBK

Shares of banks and financial services stocks are trading higher. The sector has gained amid the 2024 US presidential election results.

During the last three months, 10 analysts shared their evaluations of First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>), revealing diverse outlooks from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">8</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">4</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated First Horizon and provided 12-month price targets. The average target is $19.75, accompanied by a high estimate of $23.00 and a low estimate of $17.00. Witnessing a positive shift, the current average has risen by 3.4% from the previous average price target of $19.10.
<img src="https://www.benzinga.com/files/images/story/2024/1731092460_0.png" alt="price target chart" />
<h2>Diving into Analyst Ratings: An In-Depth Exploration</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive First Horizon. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Jared Shaw</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$23.00</td>
<td>$21.00</td>
</tr>
<tr>
<td>Michael Rose</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Outperform</td>
<td>$22.00</td>
<td>$19.00</td>
</tr>
<tr>
<td>John Pancari</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>Outperform</td>
<td>$20.00</td>
<td>$18.00</td>
</tr>
<tr>
<td>Russell Gunther</td>
<td>Stephens &amp; Co.</td>
<td>Raises</td>
<td>Overweight</td>
<td>$20.00</td>
<td>$18.00</td>
</tr>
<tr>
<td>Jared Shaw</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$21.00</td>
<td>$19.00</td>
</tr>
<tr>
<td>Jon Arfstrom</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$20.00</td>
<td>$19.00</td>
</tr>
<tr>
<td>Steven Alexopoulos</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$18.00</td>
<td>$19.00</td>
</tr>
<tr>
<td>John Pancari</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$18.00</td>
<td>$18.50</td>
</tr>
<tr>
<td>David Chiaverini</td>
<td>Wedbush</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$17.00</td>
<td>$20.00</td>
</tr>
<tr>
<td>John Pancari</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$18.50</td>
<td>$19.50</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to First Horizon. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of First Horizon compared to the broader market.</li>
<li>Price Targets: Analysts navigate through adjustments in price targets, providing estimates for First Horizon's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
For valuable insights into First Horizon's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/FHN/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on First Horizon analyst ratings.</a>
<h2>Unveiling the Story Behind First Horizon</h2>
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.
<h3>A Deep Dive into First Horizon's Financials</h3>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: First Horizon displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 4.42%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: First Horizon's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 25.76%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.53%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): First Horizon's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.26%, the company may face hurdles in achieving optimal financial returns.
Debt Management: With a below-average debt-to-equity ratio of 0.22, First Horizon adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

A Closer Look at 10 Analyst Recommendations For First Horizon

Barclays analyst Jared Shaw maintains First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) with a Overweight and raises the price target from $21 to $23.

News

Price Target

Barclays Maintains Overweight on First Horizon, Raises Price Target to $23

Raymond James analyst Michael Rose maintains First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) with a Outperform and raises the price target from $19 to $22.

Raymond James Maintains Outperform on First Horizon, Raises Price Target to $22

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Below are some instances of options activity happening in the Financials sector: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>TOST</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$36.00</td>
<td>$55.2K</td>
<td>83</td>
<td>3.7K</td>
</tr>
<tr>
<td>JPM</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>11/08/24</td>
<td>$240.00</td>
<td>$29.0K</td>
<td>2.9K</td>
<td>3.5K</td>
</tr>
<tr>
<td>AFRM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/08/24</td>
<td>$60.00</td>
<td>$25.2K</td>
<td>1.0K</td>
<td>2.3K</td>
</tr>
<tr>
<td>UPST</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$50.00</td>
<td>$52.3K</td>
<td>1.7K</td>
<td>2.3K</td>
</tr>
<tr>
<td>BAC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/08/24</td>
<td>$44.00</td>
<td>$155.6K</td>
<td>7.0K</td>
<td>2.2K</td>
</tr>
<tr>
<td>PYPL</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$85.00</td>
<td>$194.9K</td>
<td>12.0K</td>
<td>1.6K</td>
</tr>
<tr>
<td>FUTU</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>12/20/24</td>
<td>$130.00</td>
<td>$263.0K</td>
<td>782</td>
<td>1.3K</td>
</tr>
<tr>
<td>COIN</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/29/24</td>
<td>$270.00</td>
<td>$58.8K</td>
<td>1.4K</td>
<td>688</td>
</tr>
<tr>
<td>FHN</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>02/21/25</td>
<td>$21.00</td>
<td>$28.4K</td>
<td>0</td>
<td>154</td>
</tr>
<tr>
<td>AXP</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>09/19/25</td>
<td>$390.00</td>
<td>$28.1K</td>
<td>52</td>
<td>152</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding TOST (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOST#NYSE">TOST</a>), we observe a call option sweep with bullish sentiment. It expires in 8 day(s) on November 15, 2024. Parties traded 670 contract(s) at a $36.00 strike. This particular call needed to be split into 55 different trades to become filled. The total cost received by the writing party (or parties) was $55.2K, with a price of $83.0 per contract. There were 83 open contracts at this strike prior to today, and today 3735 contract(s) were bought and sold. 
• Regarding JPM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), we observe a put option trade with bullish sentiment. It expires in 1 day(s) on November 8, 2024. Parties traded 100 contract(s) at a $240.00 strike. The total cost received by the writing party (or parties) was $29.0K, with a price of $290.0 per contract. There were 2990 open contracts at this strike prior to today, and today 3504 contract(s) were bought and sold. 
• Regarding AFRM (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>), we observe a call option sweep with bearish sentiment. It expires in 1 day(s) on November 8, 2024. Parties traded 265 contract(s) at a $60.00 strike. This particular call needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $25.2K, with a price of $95.0 per contract. There were 1025 open contracts at this strike prior to today, and today 2377 contract(s) were bought and sold. 
• Regarding UPST (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UPST#NASDAQ">UPST</a>), we observe a put option sweep with bullish sentiment. It expires in 8 day(s) on November 15, 2024. Parties traded 161 contract(s) at a $50.00 strike. This particular put needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $52.3K, with a price of $325.0 per contract. There were 1735 open contracts at this strike prior to today, and today 2353 contract(s) were bought and sold. 
• Regarding BAC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), we observe a call option sweep with bearish sentiment. It expires in 1 day(s) on November 8, 2024. Parties traded 1727 contract(s) at a $44.00 strike. This particular call needed to be split into 141 different trades to become filled. The total cost received by the writing party (or parties) was $155.6K, with a price of $90.0 per contract. There were 7064 open contracts at this strike prior to today, and today 2203 contract(s) were bought and sold. 
• Regarding PYPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>), we observe a call option sweep with bearish sentiment. It expires in 71 day(s) on January 17, 2025. Parties traded 619 contract(s) at a $85.00 strike. This particular call needed to be split into 23 different trades to become filled. The total cost received by the writing party (or parties) was $194.9K, with a price of $315.0 per contract. There were 12069 open contracts at this strike prior to today, and today 1604 contract(s) were bought and sold. 
• For FUTU (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FUTU#NASDAQ">FUTU</a>), we notice a call option trade that happens to be bearish, expiring in 43 day(s) on December 20, 2024. This event was a transfer of 616 contract(s) at a $130.00 strike. The total cost received by the writing party (or parties) was $263.0K, with a price of $427.0 per contract. There were 782 open contracts at this strike prior to today, and today 1387 contract(s) were bought and sold. 
• Regarding COIN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), we observe a call option sweep with bearish sentiment. It expires in 22 day(s) on November 29, 2024. Parties traded 48 contract(s) at a $270.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $58.8K, with a price of $1225.0 per contract. There were 1473 open contracts at this strike prior to today, and today 688 contract(s) were bought and sold. 
• Regarding FHN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>), we observe a put option trade with neutral sentiment. It expires in 106 day(s) on February 21, 2025. Parties traded 154 contract(s) at a $21.00 strike. The total cost received by the writing party (or parties) was $28.4K, with a price of $185.0 per contract. There were 0 open contracts at this strike prior to today, and today 154 contract(s) were bought and sold. 
• For AXP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>), we notice a call option sweep that happens to be bullish, expiring in 316 day(s) on September 19, 2025. This event was a transfer of 62 contract(s) at a $390.00 strike. This particular call needed to be split into 15 different trades to become filled. The total cost received by the writing party (or parties) was $28.1K, with a price of $457.0 per contract. There were 52 open contracts at this strike prior to today, and today 152 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

AFRM

COIN

FUTU

PYPL

TOST

UPST

10 Financials Stocks Whale Activity In Today's Session

ALLY

ARES

BANC

CADE

COLB

FITB

FULT

HBAN

NTRS

TROW

ZION

Shares of banking and private equity stocks are trading higher after Donald Trump won the US presidential election.

Evercore ISI Group analyst John Pancari maintains First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) with a Outperform and raises the price target from $18 to $20.

Evercore ISI Group Maintains Outperform on First Horizon, Raises Price Target to $20

This new authorization will expire on January 31, 2026. The terminated program had approximately $174 million of remaining authorization and was set to expire on January 31, 2025.

Buybacks

First Horizon Plans New $1B Common Stock Repurchase Program To Replace Prior Repurchase Program, Effective As Of The Close Of Business On October 29

Stephens &amp; Co. analyst Russell Gunther maintains First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) with a Overweight and raises the price target from $18 to $20.

Stephens & Co. Maintains Overweight on First Horizon, Raises Price Target to $20

Barclays analyst Jared Shaw maintains First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) with a Overweight and raises the price target from $19 to $21.

Barclays Maintains Overweight on First Horizon, Raises Price Target to $21

RBC Capital analyst Jon Arfstrom maintains First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) with a Outperform and raises the price target from $19 to $20.

RBC Capital Maintains Outperform on First Horizon, Raises Price Target to $20

First Horizon shares are trading higher after the company reported better-than-expected Q3 adjusted EPS results.

First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) reported quarterly earnings of $0.42 per share which beat the analyst consensus estimate of $0.38 by 10.53 percent. This is a 55.56 percent increase over earnings of $0.27 per share from the same period last year.

Earnings

Earnings Beats

First Horizon Q3 2024 Adj. EPS $0.42 Beats $0.38 Estimate

First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) is gearing up to announce its quarterly earnings on Wednesday, 2024-10-16. Here's a quick overview of what investors should know before the release.
Analysts are estimating that First Horizon will report an earnings per share (EPS) of $0.38.
The announcement from First Horizon is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
<h3>Past Earnings Performance</h3>
During the last quarter, the company reported an EPS missed by $0.01, leading to a 1.46% drop in the share price on the subsequent day.
Here's a look at First Horizon's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.37</td>
<td>0.34</td>
<td>0.30</td>
<td>0.25</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.36</td>
<td>0.35</td>
<td>0.32</td>
<td>0.27</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-1.0%</td>
<td>1.0%</td>
<td>1.0%</td>
<td>1.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1729000926_0.png" alt="eps graph" />
<h3>Performance of First Horizon Shares</h3>
Shares of First Horizon were trading at $16.45 as of October 14. Over the last 52-week period, shares are up 50.27%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/FHN/earnings">To track all earnings releases for First Horizon visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

A Glimpse of First Horizon's Earnings Potential

Huntington Bancshares Incorporated (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hban#NASDAQ">HBAN</a>) is slated to report&nbsp;third-quarter 2024 results&nbsp;results on Oct. 17, before the opening bell. The company&#39;s quarterly revenues and earnings are expected to have declined year over year.
In the last reported quarter, the bank recorded a positive earnings surprise of 7.14%. Results have reflected improvements in average loans and deposits. However, a fall in net interest income (NII) and elevated expenses were headwinds.
HBAN has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8.87%.
The Zacks Consensus Estimate for HBAN&#39;s third-quarter earnings of 30 cents per share has remained unchanged in the past seven days. The figure indicates a 16.67% decline from the year-ago reported number.
The consensus estimate for revenues is pegged at $1.86 billion, indicating a year-over-year decline of 1.67%.
<div class="chart_embed">
<h3>Huntington Bancshares Incorporated Price and EPS Surprise</h3>
<img alt="Huntington Bancshares Incorporated Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/c9/1728910582.png" style="height:258px; width:530px" title="" />
Huntington Bancshares Incorporated price-eps-surprise | Huntington Bancshares Incorporated Quote
Now, let us discuss factors that might have influenced Huntington Bancshares&#39; third-quarter performance.
</div>
<h2>Key Factors &amp; Estimates for HBAN&#39;s Q3 Result</h2>
Loans &amp; NII: On Sept. 18, the Federal Reserve cut the interest rates by 50 basis points to 4.75-5% for the first time since March 2020. While the rate cut is not expected to significantly affect HBAN&#39;s NII in the quarter under review, greater clarity on the Fed&#39;s rate cut path, along with a stabilizing macroeconomic environment, is likely to have aided the lending outlook.
The Zacks Consensus Estimate for NII is pegged at $1.35 billion, indicating a 3% rise sequentially.
Per the Fed&#39;s latest&nbsp;data, the demand for commercial and industrial loans and consumer loans was decent in the third quarter of 2024, while real estate loan was subdued.
Given the company&#39;s significant exposure to commercial loans, HBAN&#39;s lending book is likely to have been supported by the decent demand in commercial loans while the subdued real estate loan demand might have offset growth to some extent.
The Zacks Consensus Estimate for average total earning assets of $180.5 billion for the quarter under review indicates a 1.4% rise from the prior quarter&#39;s levels.
Non-Interest Income: As the central bank lowered the interest rates, mortgage rates started to come down. The rates declined to almost 6.2% by the end of the third quarter. Although mortgage origination volume remained subdued in the quarter under review, refinancing activities witnessed a significant surge supported by lower mortgage rates. This is likely to have supported HBAN&#39;s mortgage banking fees. The Zacks Consensus Estimate for mortgage banking income is pegged at $30.6 million, suggesting a 1.8% increase from the prior quarter&#39;s reported figure.
Global mergers and acquisitions in the third quarter of 2024 showed improvement after subdued 2023 and 2022.
Both deal value and volume were decent during the quarter, driven by solid financial performance, higher chances of a soft landing of the U.S. economy, buoyant markets and interest rate cuts. Also, the performance of the capital markets business, including issuance activities, improved. As a result, the company&#39;s capital markets and advisory fees are expected to have increased.
The Zacks Consensus Estimate for capital markets and advisory fees is pegged at $76.14 million, indicating 4.3% growth sequentially.
The strong performance of the equity market is likely to have supported wealth and asset management revenues during the quarter under review.The Zacks Consensus Estimate for wealth and asset management revenues is pegged at $92 million, indicating a 2.3% rise from the previous quarter&#39;s reported figure.
The consensus estimate for customer deposit and loan fees for the third quarter is pegged at $84.6 million, indicating a rise of 1.9% on a sequential basis. The consensus mark for insurance income of $18.3 million implies a sequential rise of 1.7%.
The consensus mark for total non-interest income is pegged at $507.4 million, indicating a 3.3% sequential rise.
Expenses: Huntington Bancshares&#39; higher outside data processing and other services expenses, deposit and marketing expenses are anticipated to have raised its costs in the third quarter. Also, the bank&#39;s efforts to expand its commercial banking capabilities in high growth markets by adding more branches and hiring professionals are expected to have contributed to higher costs.
Though strategic efficiency initiatives are likely to reduce expenses to some extent, long-term investments in key growth initiatives are expected to have kept its expense base higher.
Asset Quality: HBAN is likely to have set aside a substantial amount of money for potential delinquent loans, given the expectations of an economic slowdown.
The Zacks Consensus Estimate for total non-performing assets of $780.08 million indicates a marginal increase from the figure reported in the prior quarter.
<h2>What Our Model Unveils for HBAN?</h2>
Per our proven model, the chances of Huntington Bancshares beating estimates this time are low.&nbsp; The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you can see below.
Earnings ESP: Huntington Bancshares has an&nbsp;Earnings ESP&nbsp;of -2.78%.
Zacks Rank: HBAN currently carries a Zacks Rank of 3.
<h2>Stocks to Consider</h2>
Here are some finance stocks that you may want to consider, as our model shows that these hold the right combination of elements to post an earnings beat this time around.
First Horizon Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fhn#NYSE">FHN</a>) has an Earnings ESP of +3.18% and carries a Zacks Rank #3 at present. The company is scheduled to release its third-quarter 2024 earnings on Oct. 16.
FHN&#39;s quarterly earnings estimates have been unchanged over the past seven days.
The Earnings ESP for M&amp;T Bank Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtb#NYSE">MTB</a>) is +0.33% and it also carries a Zacks Rank #3 at present. The company is slated to report its third-quarter 2024 results on Oct. 17.
The Zacks Consensus Estimate for MTB&#39;s quarterly earnings has remained unchanged in the past seven days.
<a href="https://www.zacks.com/stock/news/2350055/higher-costs-to-hurt-huntington-bancshares-q3-earnings-nii-to-aid?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2350055">To read this article on Zacks.com click here.</a>

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Higher Costs to Hurt Huntington Bancshares' Q3 Earnings, NII to Aid

Fifth Third Bancorp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fitb#NASDAQ">FITB</a>) is scheduled to report third-quarter 2024 results on Oct. 18 before the opening bell. Quarterly revenues are expected to have registered growth in the to-be-reported quarter, while earnings are likely to have declined on a year-over-year basis.
In the last reported quarter, the bank&#39;s earnings surpassed the Zacks Consensus Estimate. Results benefited from a fall in expenses and provisions for credit losses, along with strong capital ratios. However, a decline in net interest income (NII), and lower loan and deposit balances were major headwinds.
This Cincinnati, OH-based lender has an impressive earnings surprise history. Its earnings beat estimates in the trailing four quarters, the surprise being 7.91%, on average.
<h3>Fifth Third Bancorp Price and EPS Surprise</h3>
<div class="chart_embed"><img alt="Fifth Third Bancorp Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/64/1728910402.png" style="height:266px; width:546px" title="" /></div>
<div class="chart_embed">Fifth Third Bancorp price-eps-surprise | Fifth Third Bancorp Quote</div>
<div class="chart_embed">Here are some factors that are expected to have impacted FITB&#39;s quarterly performance.</div>
Loans &amp; NII: On Sept. 18, the Federal Reserve cut interest rates by 50 basis points to 4.75-5% for the first time since March 2020. While the rate cut is not expected to significantly affect FITB&#39;s NII in the quarter under review, greater clarity on the Fed&#39;s rate cut path, along with a stabilizing macroeconomic environment, is likely to have aided the lending outlook.&nbsp;
Per the Fed&#39;s latest data, lending activities continued at a decent pace in the third quarter. This is expected to have supported the company&#39;s average interest-earning assets in the third quarter of 2024.
The Zacks Consensus Estimate for average interest-earning assets of $195 billion for the quarter indicates marginal growth from the prior quarter&#39;s actual. Our estimate suggests the metric to be $194.21 billion.
FITB expects third-quarter total average loans and leases to be unchanged from the second quarter&#39;s reported figure of $117.3 billion. We estimate the metric to be $117.1 billion, hinting at a marginal rise from the prior quarter&#39;s reported figure.
The company expects adjusted NII to rise 2% from the $1.39 billion reported in the second quarter of 2024. The consensus mark for NII of $1.42 billion indicates a 2.7% sequential rise. Our estimate is pegged at $1.44 billion.
Non-Interest Revenues: The stabilizing deposit balance is likely to have supported FITB&#39;s service charges on deposits. The consensus estimate for the metric of $156.4 million suggests a marginal sequential increase. Our estimate is pegged at $149.6 million.
Global mergers and acquisitions (M&amp;As) showed signs of improvement in the third quarter of 2024 after subdued performances in 2023 and 2022. Both deal value and volume were decent in the quarter, driven by a solid financial performance, higher chances of a soft landing of the U.S. economy, buoyant markets and interest rate cuts.&nbsp;
With increased M&amp;A volumes, advisory revenues are expected to have improved, positively impacting commercial banking revenues.
The Zacks Consensus Estimate for commercial banking revenues is pegged at $156.1 million, indicating an 8.4% sequential increase. We project the metric to be $149.9 million.
As the central bank lowered the rates, mortgage rates started to come down. The rates declined to 6.2% by the end of the third quarter.&nbsp;
Though mortgage origination volume remained subdued in the third quarter, refinancing activities witnessed a significant surge, supported by lower mortgage rates. This is likely to have supported FITB&#39;s mortgage banking income. The Zacks Consensus Estimate for the metric is pegged at $55 million, suggesting an increase of 10% from the prior quarter&#39;s reported figure. We estimate the metric to be $56.2 million.
Wealth and asset management revenues are likely to have gained from higher equity market performance in the quarter. The Zacks Consensus Estimate for wealth and asset management revenues is pegged at $159.7 million, increasing marginally from the prior quarter&#39;s actual. Our estimate is pinned at $152.1 million.
The Zacks Consensus Estimate for card and processing revenues is pegged at $108.9. million, indicating a marginal rise from the prior quarter&#39;s reported figure. Our estimate is pinned at $104.3 million.
Management expects non-interest income to rise 3-4% in the quarter to be reported, whereas it reported $717 million in the second quarter. The Zacks Consensus Estimate for non-interest income is pegged at $735.3 million, which indicates a 5.8% rise from the prior quarter. Our model estimates the metric to be $711 million.
Expenses: The company&#39;s expense base is anticipated to have escalated due to investments aimed at operational efficiencies in technology and marketing, higher compensation and benefits expenses, and initiatives such as branch digitization and marketing expenses.&nbsp;
On a sequential basis, management expects adjusted non-interest expenses to rise 1% from the $1.2 billion reported in the second quarter. We estimate total expenses to rise 6.5% on a sequential basis to $1.3 billion.&nbsp;&nbsp;
<h2>What the Zacks Model Reveals for FITB</h2>
According to our quantitative model, the chances of Fifth Third beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of two key ingredients, a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: The Earnings ESP for Fifth Third is -0.24%.
Zacks Rank: The company currently carries a Zacks Rank of 3.
The Zacks Consensus Estimate for FITB&#39;s third-quarter earnings of 82 cents per share has been unchanged in the past seven days. The figure indicates a fall of 10.9% from the year-ago reported number.
The consensus estimate for revenues is pegged at $2.6 billion, suggesting a rise of 0.09% from the year-ago reported figure. Management expects total revenues to increase 2-3% in the third quarter from $2.2 billion in second-quarter 2024.
<h2>Stocks That Warrant a Look</h2>
Here are some bank stocks that you may want to consider, as our model shows that these have the right combination of elements to post earnings beat this time around.
PNC Financial&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pnc#NYSE">PNC</a>) Earnings ESP is +0.89% and it carries a Zacks Rank #3 at present. The company is slated to report third-quarter 2024 results on Oct. 15.
PNC&#39;s quarterly earnings estimates have revised upward by 1.5% to $3.29 per share over the past month.
First Horizon Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fhn#NYSE">FHN</a>) has an Earnings ESP of +3.18% and a Zacks Rank #3 at present. The company is scheduled to release its third-quarter 2024 earnings on Oct. 16. &nbsp;
FHN&#39;s quarterly earnings estimates have been unchanged at 38 cents over the past month.
<a href="https://www.zacks.com/stock/news/2350048/high-expenses-to-hurt-fifth-third-s-q3-earnings-fee-income-to-ail?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2350048">To read this article on Zacks.com click here.</a>

Management

High Expenses to Hurt Fifth Third's Q3 Earnings, Fee Income to Ail

Toronto Dominion Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TD#NYSE">TD</a>) is reportedly preparing to settle charges related to its alleged failure to monitor money laundering by drug cartels, the Wall Street Journal said in an <a target="_blank" href="https://www.wsj.com/finance/regulation/td-bank-faces-3-billion-in-penalties-and-growth-restrictions-in-u-s-settlement-3e09a705" rel="noreferrer noopener">exclusive report</a>.
The Canadian bank is expected to pay approximately $3 billion in penalties and face restrictions on its U.S. growth.
Under the expected agreement, TD Bank&#8217;s U.S. entity will likely plead guilty to criminal charges stemming from a DOJ investigation.
This settlement could be announced as early as today and involves multiple agencies, including the U.S. Department of Justice (DOJ), the Office of the Comptroller of the Currency (OCC), the Financial Crimes Enforcement Network (FinCEN), and the Federal Reserve.
According to the WSJ report, the DOJ and FinCEN are set to impose independent monitors to oversee the bank&#8217;s compliance with anti-money-laundering regulations. The FinCEN monitor will reportedly remain in place for four years.
The penalties will be divided between the DOJ and FinCEN, with the DOJ receiving $1.8 billion and FinCEN receiving $1.3 billion.
The bank has acknowledged the severity of its AML deficiencies, with outgoing CEO Bharat Masrani stating that resolving these <a target="_blank" href="https://www.benzinga.com/news/24/09/40941233/whats-going-on-with-toronto-dominion-bank-today" rel="noreferrer noopener">issues is a top priority</a>.
Masrani, who announced his decision to step down as CEO later this year, has been at the forefront of TD&#8217;s efforts to address regulatory concerns. In August, the bank set aside an additional $2.6 billion in anticipation of the settlement costs.
TD Bank is due to host a <a target="_blank" href="https://www.benzinga.com//node/41267914" rel="noreferrer noopener">conference call today</a>.
The case has had significant consequences for TD, including halting its $13.4 billion acquisition of First Horizon Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) due to U.S. regulators&#8217; concerns over the bank&#8217;s anti-money-laundering capabilities.
The companies terminated the merger agreement in May 2023, which was announced initially in February 2022. TD paid First Horizon a $200 million cash payment and the $25 million fee reimbursement due to First Horizon under the merger agreement.&nbsp;
The OCC will impose an asset cap on TD&#8217;s U.S. business, similar to the restrictions imposed on Wells Fargo Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) in 2018 after its fake account scandal, the report highlighted.
The investigation into TD Bank intensified when federal authorities discovered that a Chinese criminal group had laundered millions of dollars from fentanyl sales through TD&#8217;s branches in New York and New Jersey, bribing bank employees in the process.
This incident, among others, has forced TD to overhaul its internal controls and strengthen its AML and investigations teams with new hires.
Price Action: At last check on Thursday, TD stock was down 4.74% at $60.50 during the premarket session.
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TD Bank To Face $3B Penalty, Growth Limits In US Settlement Over Anti-Money Laundering Failures

Throughout the last three months, 7 analysts have evaluated First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>), offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $17.79, a high estimate of $19.00, and a low estimate of $16.00. Observing a downward trend, the current average is 3.47% lower than the prior average price target of $18.43. 
<img src="https://www.benzinga.com/files/images/story/2024/1728507678_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
The perception of First Horizon by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Steven Alexopoulos</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$18.00</td>
<td>$19.00</td>
</tr>
<tr>
<td>John Pancari</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$18.00</td>
<td>$18.50</td>
</tr>
<tr>
<td>David Chiaverini</td>
<td>Wedbush</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$17.00</td>
<td>$20.00</td>
</tr>
<tr>
<td>John Pancari</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$18.50</td>
<td>$19.50</td>
</tr>
<tr>
<td>David George</td>
<td>Baird</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$16.00</td>
<td>$16.00</td>
</tr>
<tr>
<td>Michael Rose</td>
<td>Raymond James</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$18.00</td>
<td>$18.00</td>
</tr>
<tr>
<td>Jon Arfstrom</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$19.00</td>
<td>$18.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to First Horizon. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of First Horizon compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
For valuable insights into First Horizon's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/FHN/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on First Horizon analyst ratings.</a>
<h2>Unveiling the Story Behind First Horizon</h2>
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.
<h3>First Horizon: Financial Performance Dissected</h3>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: First Horizon's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 1.15%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.
Net Margin: First Horizon's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 23.23%, the company may face hurdles in effective cost management.
Return on Equity (ROE): First Horizon's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.22%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): First Horizon's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.22%, the company may face hurdles in achieving optimal financial performance.
Debt Management: First Horizon's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.38.
<h2>Analyst Ratings: What Are They?</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Peeling Back The Layers: Exploring First Horizon Through Analyst Insights

JP Morgan analyst Steven Alexopoulos maintains First Horizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>) with a Neutral and lowers the price target from $19 to $18.

JP Morgan Maintains Neutral on First Horizon, Lowers Price Target to $18

Citizens Financial Group, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cfg#NYSE">CFG</a>) is scheduled to report its third-quarter 2024 results on Oct. 16, before the opening bell. The company&#39;s earnings and revenues in the third quarter are expected to have declined from the year-ago reported figures.
In the second quarter of 2024, CFG&#39;s earnings missed the Zacks Consensus Estimate on lower net interest income (NII), a rise in provisions and operating expenses. However, an increase in non-interest income and lower allowance for credit losses offered some support.
The company&#39;s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, the negative surprise being 16.39%, on average.
<div class="chart_embed">
<h3>Citizens Financial Group, Inc. Price and EPS Surprise</h3>
<h2><img alt="Citizens Financial Group, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/01/1728481134.png" style="height:266px; width:547px" title="" /></h2>
Citizens Financial Group, Inc. price-eps-surprise | Citizens Financial Group, Inc. Quote
</div>
<h2>Factors to Influence CFG&#39;s Q3 Earnings</h2>
Loans: The clarity on the Fed&#39;s rate cut path and the stabilizing macroeconomic backdrop are likely to have provided support to the lending scenario. According to the latest data from the Fed, the demand for commercial and industrial and consumer loans was modest in the first two months of the quarter, while demand for commercial real estate remained subdued.
The company&#39;s lending book is likely to have been positively impacted by improvement in commercial loans, while the subdued real estate loan demand might have offset growth to some extent.
The Zacks Consensus Estimate for average interest-earning assets is pegged at $199 billion, indicating an increase of nearly 1% from the prior quarter&#39;s reported figure. We estimate the metric to be $212.5 billion.
Net Interest Income: On Sept. 18, the Federal Reserve cut interest rates by 50 basis points to 4.75-5% for the first time since March 2020. While this development might prove to be helpful in the long term, it is not expected to have a positive impact on CFG&#39;s NII during the third quarter.
Also, relatively higher rates might have hurt NII growth prospects similar to the last quarter due to the elevated funding/deposit costs and an inverted yield curve during the major part of the quarter.
Management expects NII to be down 1-2% in the third quarter compared with the second quarter&#39;s reported figure of $1.41 million.
The Zacks Consensus Estimate for NII is pegged at $1.39 billion, indicating a 1.7% decrease from the prior quarter&#39;s reported figure. Our estimate for the metric is pegged at $1.38 billion.
Non-Interest Income: As the central bank lowered the interest rates, mortgage rates started to come down. The rates declined to almost 6.2% by the end of the third quarter. Although mortgage origination volume remained subdued in the quarter under review, refinancing activities witnessed a significant surge supported by lower mortgage rates. This is likely to have supported CFG&#39;s mortgage banking fees.
The Zacks Consensus Estimate for mortgage banking fees is pegged at $55.9 million, indicating a 3.5% rise from the prior quarter&#39;s reported figure. Our estimate for the metric is pegged at $62.1 million.
Decent client activity and impressive equity market performance are likely to have boosted the company&#39;s trust and investment services fees. The Zacks Consensus Estimate for trust and investment services fees is pegged at $77.8 million, indicating a 3.7% increase from the previous quarter&#39;s reported figure. Our estimate for the metric is pegged at $73.9 million.
Global mergers and acquisitions in the third quarter of 2024 showed improvement after subdued 2023 and 2022. Both deal value and volume were decent during the quarter, driven by solid financial performance, higher chances of a soft landing of the U.S. economy, buoyant markets and interest rate cuts. However, tough scrutiny by antitrust regulators and lingering geopolitical issues are likely to have affected the company&#39;s capital markets fee.
The Zacks Consensus Estimate for capital markets fees is pegged at $120.9 million, indicating a sequential decline of 9.8%. We estimate the metric to be $108.6 million.
Citizens Financial&#39;s efforts to enhance deposit balances on the back of past strategic acquisitions are likely to have aided service charge and fee revenues in the quarter under review. The Zacks Consensus Estimate for the service charge and fee revenues is pegged at $107.8 million, indicating a rise of 1.7% from the prior quarter&#39;s reported level. Our estimate for the metric is pegged at $111.1 million.
The Zacks Consensus Estimate for card fees is pegged at $89.4 million, indicating a sequential decline of 2.7%. We estimate the metric to reach $86.6 million.
Management expects fee income in the third quarter to be slightly up compared with $549 million in the second quarter. Further, the Zacks Consensus Estimate for the metric is pegged at $553.3 million, indicating a marginal sequential increase. Our estimate for the metric is pegged at $556.2 million.
Expenses: Citizens Financial&#39;s expenses are expected to have flared up in the quarter under review on the opening of private banking offices, franchise expansion, as well as investments in newer technological advancements.
Management projects adjusted non-interest expenses to be stable in the third quarter compared with the second-quarter 2024 level of $1.27 billion.
Asset Quality: The company is expected to have set aside substantial money for potential bad loans, especially commercial loans which accounted for 50.7% of total loans and leases as of June 30, 2024, given the expectations of an economic slowdown.
The Zacks Consensus Estimate for non-accrual loans and leases is pegged at $1.54 billion, indicating a rise of 1.2% from the previous quarter&#39;s reported figure. Our estimate for the metric is pegged at $1.51 billion.
<h2>What Our Model Unveils for CFG?</h2>
Our proven model predicts an earnings beat for Citizen Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you can see below.
Earnings ESP: Citizens Financial has an Earnings ESP of +0.31%.
Zacks Rank: The company currently carries a Zacks Rank of 3.
The Zacks Consensus Estimate for third-quarter earnings has remained unchanged in the past seven days at 78 cents per share. It suggests a year-over-year decline of 8.24%.
The consensus estimate for quarterly revenues of $1.94 billion indicates a 3.6% decline from the prior-year quarter&#39;s reported figure.
<h2>Other Stocks to Consider</h2>
Here are some other bank stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time around:
First Horizon Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fhn#NYSE">FHN</a>) has an Earnings ESP of +3.18% and carries a Zacks Rank #3 at present. The company is scheduled to release its third-quarter 2024 earnings on Oct. 16.
FHN&#39;s quarterly earnings estimates have been unchanged over the past 60 days.
The Earnings ESP for M&amp;T Bank Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtb#NYSE">MTB</a>) is +0.49% and it carries a Zacks Rank #3 at present. The company is slated to report its third-quarter 2024 results on Oct. 17.
Over the past seven days, the Zacks Consensus Estimate for MTB&#39;s quarterly earnings has remained unchanged in the past seven days.
<a href="https://www.zacks.com/stock/news/2348450/fee-income-to-support-citizens-financial-s-q3-earnings-amid-lower-nii?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2348450">To read this article on Zacks.com click here.</a>

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