BB&T's disappointing Q4 forecast drag soon-to-be-merged SunTrust too

Beacon Financial

17/10/2019 17:20

Oct 17 (Reuters) -    ** Shares of U.S. regional banks BB&T
Corp  BBT.N , SunTrust Banks Inc  STI.N  down 2.2% after BB&T's
Q4 forecast raises concerns
    ** "Share movement downward could reflect (BBT) management's
outlook for the fourth quarter, with the revenue potentially
being below expectations" Stephens Analyst Terry McEvoy told
Reuters
    ** UBS sees BB&T's Q4 guidance implying a $20 mln -$30 mln
downside to its net interest income estimates
    ** BB&T posted better-than-expected Q3 profit, while
SunTrust EPS narrowly missed expectations  urn:newsml:reuters.com:*:nPn9Vl5kQa
 urn:newsml:reuters.com:*:nPn16Xs1Ga
    ** BB&T reported a profit of $1.07/share vs est of $1.03;
expects merger of equals with SunTrust to close later this year,
as it is currently finalizing divestiture process with the
Department of Justice 
    **"STI shares will track those of BBT given the proposed
merger and the fixed exchange ratio of the shares" says UBS
analyst Saul Martinez    

 (Reporting by Seerat Gupta)
 ((Seerat.Gupta@thomsonreuters.com;))