Regions Financial Stock Trades Lower Pre-Market After Q4 Revenue Falls Short Of Estimates: Retail Shrugs It Off

Shares of Regions Financial Corp (RF) traded over 2% lower in Friday’s pre-market session after the company’s fourth-quarter revenue fell short of Wall Street estimates.

The firm reported a 1% year-over-year (YoY) decline in revenue to $1.85 billion, weaker than a Wall Street estimate of $1.86 billion, according to FinChat. Earnings per share (EPS) came in at $0.56 versus an estimated $0.55.

Net interest income (NII), the difference between interest earned and expended, declined marginally to $1.23 billion. Net income rose 36.6% YoY to $534 million during the quarter.

CEO John Turner said 2024 was a year of records at Regions. “Our Capital Markets and Wealth Management businesses, as well as our Treasury Management products and services, all generated record revenue,” he said.

The firm’s net interest margin (NIM) declined to 3.55% during the fourth quarter compared to 3.6% in the same quarter a year ago.

Earlier this week, Keefe Bruyette lowered the firm's price target on Regions Financial to $31 from $32 while keeping an ‘Outperform’ rating on the shares.

According to TheFly, the brokerage noted that the recent pullback in bank stocks provides an opportunity for investors to selectively add exposure.

Last month, the firm announced the appointment of Roger W. Jenkins, director and CEO of Murphy Oil Corporation, to serve on the boards of Regions Financial Corp. and its subsidiary, Regions Bank. Jenkins’ term on the Regions boards commenced on Jan. 1, 2025.

On Stocktwits, retail sentiment surrounding the shares trended in the ‘extremely bullish’ territory (93/100), accompanied by ‘extremely high’ retail chatter.

RF’s Sentiment Meter and Message Volume as of 7:13 a.m. ET on Jan. 17, 2025 | Source: Stocktwits

One Stocktwits user believes the stock is a good long-term hold.

Notably, RF stock has gained over 36% in the past year.

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