Truist Financial (NYSE:TFC) Issues Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Truist Financial (NYSE:TFC) posted its earnings results on Friday. The insurance provider reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.01), FiscalAI reports. The firm had revenue of $5.30 billion for the quarter, compared to analysts’ expectations of $5.35 billion. Truist Financial had a return on equity of 10.37% and a net margin of 18.01%. The company’s revenue was up 1.3% compared to the same quarter last year. During the same period in the previous year, the company earned $1.04 earnings per share.

Here are the key takeaways from Truist Financial’s conference call:

• Adjusted third-quarter EPS rose 12% year over year to $1.16, while adjusted ROTCE improved 100 basis points to 14.6%. Deposit growth, wealth management performance and expense control exceeded or met expectations.
• Truist completed the $5.5 billion RAC auto-loan sale and agreed to sell $7.7 billion of LightStream loans, reducing credit risk and wholesale funding needs. Management said the transactions are expected to improve capital efficiency, tangible book value and future EPS/ROTCE, although they will reduce near-term net interest income.
• CEO Mike Lyons outlined a strategy centered on relationship-based consumer and wholesale banking, including stronger branch, digital, payments, treasury management, wealth and commercial-lending capabilities. Truist is conducting a company-wide review to redirect capital and expenses toward strategic businesses, with further details expected in early 2027.
• Average loans declined 1.1% sequentially as Truist reduced lower-return lending and experienced higher paydowns, while investment banking revenue was delayed by market volatility. The bank expects fourth-quarter net interest income of $3.65 billion to $3.7 billion, including a roughly $125 million impact from the RAC sale.
• Management reiterated its target for 15% ROTCE in 2027 and 16%–18% over the long term, alongside expectations for 3%–4% 2026 average loan growth excluding the RAC and LightStream sales. Truist also plans approximately $1 billion of fourth-quarter share repurchases while preserving a strong through-the-cycle capital position.

Truist Financial Trading Up 2.2%

Shares of TFC opened at $47.32 on Wednesday. The firm has a market cap of $57.81 billion, a price-to-earnings ratio of 10.07, a PEG ratio of 1.02 and a beta of 0.92. Truist Financial has a 52-week low of $43.13 and a 52-week high of $56.19. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.88 and a current ratio of 0.88. The business’s fifty day moving average is $48.96 and its 200-day moving average is $49.65.

Truist Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th were given a $0.52 dividend. The ex-dividend date was Friday, August 14th. This represents a $2.08 annualized dividend and a dividend yield of 4.4%. Truist Financial’s payout ratio is presently 53.61%.

Insiders Place Their Bets

In related news, CEO Michael P. Lyons acquired 21,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was acquired at an average price of $48.36 per share, for a total transaction of $1,015,560.00. Following the completion of the acquisition, the chief executive officer owned 21,000 shares of the company’s stock, valued at approximately $1,015,560. This represents a ? increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Dontá Wilson sold 13,280 shares of the stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $51.85, for a total value of $688,568.00. Following the sale, the insider directly owned 56,009 shares in the company, valued at $2,904,066.65. This trade represents a 19.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.15% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have issued reports on TFC shares. UBS Group reduced their target price on shares of Truist Financial from $55.00 to $50.00 and set a “neutral” rating on the stock in a report on Monday, October 5th. Citigroup lowered Truist Financial from a “buy” rating to a “neutral” rating and lowered their price objective for the company from $63.00 to $54.00 in a report on Tuesday, June 30th. Robert W. Baird boosted their price target on Truist Financial from $55.00 to $56.00 and gave the stock a “neutral” rating in a research note on Monday, July 20th. Bank of America reissued a “neutral” rating and issued a $56.00 target price (up from $54.00) on shares of Truist Financial in a research note on Wednesday, July 8th. Finally, Morgan Stanley restated an “equal weight” rating and issued a $54.00 price objective (down from $62.00) on shares of Truist Financial in a report on Monday, July 6th. Seven investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $54.08.

About Truist Financial

Truist Financial Corporation is a financial services company headquartered in Charlotte, North Carolina, operating through its principal subsidiary, Truist Bank. The company provides banking, lending, investment, insurance and wealth management services to consumers, small businesses, commercial clients and institutional customers.

Its offerings include checking and savings accounts, mortgages, consumer loans, credit cards, commercial and industrial lending, treasury and payment services, investment banking, brokerage, asset management and insurance products.