The company has reported its financial results for the first quarter, showing a promising start to the year. Revenue reached $1.77 billion, surpassing analysts' expectations of $1.75 billion. This marks a 16% increase in revenue compared to the same period last year, while the company's expenses remained effectively unchanged.
Significantly, the company's Common Equity Tier 1 (CET1) capital ratio stood at 11.8%, and the tangible book value per share was recorded at $12.40. These metrics reflect the company's robust capital position and shareholder value, respectively.
In addition to these positive outcomes, the company demonstrated both absolute and fee-based positive operating leverage on a year-over-year basis. Sequential growth has also been solid, with net interest income rising by 4% and the net interest margin widening by 17 basis points, reaching 2.58%.
On an adjusted basis, the pre-provision net revenue saw an increase of over $90 million when compared to the previous quarter. The company is also seeing improvements in credit quality, with credit migration trends showing positive changes for the fifth straight quarter.
Overall, this performance underscores the company's strong financial health and operational efficiency, setting a solid foundation for the remainder of the year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for KeyCorp (KEY, Financial) is $18.81 with a high estimate of $21.00 and a low estimate of $16.00. The average target implies an upside of 33.70% from the current price of $14.07. More detailed estimate data can be found on the KeyCorp (KEY) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, KeyCorp's (KEY, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for KeyCorp (KEY, Financial) in one year is $17.44, suggesting a upside of 23.95% from the current price of $14.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the KeyCorp (KEY) Summary page.
