Fifth Third Bancorp (NASDAQ:FITB) Announces Earnings Results

Key Points

• Fifth Third Bancorp reported quarterly earnings of $0.91 per share, surpassing analysts’ consensus estimate of $0.83. Revenue increased 42.4% year over year, while net margin was 15.89% and return on equity was 12.39%.
• The company raised its quarterly dividend to $0.42 per share from $0.40, equivalent to an annualized dividend of $1.68 and a 3.3% yield.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $60.92; several firms recently raised their targets to between $62 and $67.

Fifth Third Bancorp (NASDAQ:FITB - Get Free Report) issued its quarterly earnings results on Monday. The financial services provider reported $0.91 earnings per share for the quarter, beating analysts' consensus estimates of $0.83 by $0.08, Briefing.com reports. Fifth Third Bancorp had a net margin of 15.89% and a return on equity of 12.39%. The company's revenue was up 42.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.91 earnings per share.

Fifth Third Bancorp Price Performance

NASDAQ:FITB opened at $50.44 on Monday. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.83 and a current ratio of 0.83. The company has a 50-day moving average of $53.49 and a 200-day moving average of $52.95. Fifth Third Bancorp has a 52 week low of $40.65 and a 52 week high of $59.50. The company has a market capitalization of $45.74 billion, a price-to-earnings ratio of 16.92, a PEG ratio of 1.09 and a beta of 0.97.

Fifth Third Bancorp Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend was Wednesday, September 30th. This is a positive change from Fifth Third Bancorp's previous quarterly dividend of $0.40. Fifth Third Bancorp's payout ratio is 57.34%.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on FITB. Wells Fargo & Company lifted their target price on Fifth Third Bancorp from $58.00 to $67.00 and gave the stock an "overweight" rating in a research report on Monday, July 6th. DA Davidson boosted their price target on Fifth Third Bancorp from $63.00 to $65.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Royal Bank Of Canada upped their price target on Fifth Third Bancorp from $57.00 to $62.00 and gave the company an "outperform" rating in a report on Monday, July 20th. Bank of America raised their price objective on Fifth Third Bancorp from $63.00 to $65.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. Finally, Morgan Stanley raised their price objective on Fifth Third Bancorp from $60.00 to $64.00 and gave the stock an "overweight" rating in a research report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, Fifth Third Bancorp currently has a consensus rating of "Moderate Buy" and an average price target of $60.92.

Fifth Third Bancorp Company Profile

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. Its principal subsidiary, Fifth Third Bank, provides banking and financial services to individuals, businesses, government entities and institutional clients.

The company's offerings include checking and savings accounts, consumer and commercial lending, mortgages, credit and debit cards, treasury management, cash management and payment-processing services. Through its wealth and asset management businesses, Fifth Third also provides investment management, brokerage, trust, private banking and financial planning services.

Fifth Third primarily serves customers across the Midwest and Southeast, with a branch and banking-center network spanning states including Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee and West Virginia.

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