Is KEY's earnings trend improving for 2025?
4/4/2025 04:31pm
**KeyCorp's earnings trend is not currently forming an improving pattern for 2025.** Here's an analysis based on the latest data and trends:
1. **Recent Performance**: KeyCorp's stock experienced a 11% decline last week, which is indicative of market volatility and potential challenges for the bank.
2. **Financial Projections**: For the second quarter of 2025, KeyCorp has estimated earnings per share (EPS) of $1.20, which suggests a potential recovery or maintenance of profitability. However, this is a forecast and does not guarantee improvement in actual earnings.
3. **Strategic Investments**: The bank's recent strategic investment from Scotiabank is expected to boost its capital position and enhance tangible book value, which could positively influence earnings in the long term.
4. **Share Buyback Plan**: KeyCorp has announced a share buyback program authorizing the purchase of up to $1 billion in common shares, which could signal confidence in the company's financial health and potential for growth. This move is expected to commence in the second half of 2025.
5. **Market Conditions**: The bank's performance is likely to be influenced by broader market conditions, economic concerns, and regulatory requirements. The uncertain economic environment and potential impacts of tariffs may continue to affect KeyCorp's financial performance.
In conclusion, while there are some positive developments, such as the strategic investment and share buyback plan, the current stock price decline and the uncertain economic conditions suggest that KeyCorp's earnings trend may not be improving for 2025 at this time. The actual performance will depend on various factors, including market conditions, economic health, and the company's strategic decisions.