Valued at $21.4 billion by market cap, Birmingham, Alabama-based Regions Financial Corporation (RF) operates as a financial holding company, providing banking and financial services to individuals and corporations. Regions operate through Corporate Bank, Consumer Bank, and Wealth Management segments. The banking major is set to announce its fourth-quarter results before the markets open on Friday, Jan. 17.

Ahead of the event, analysts expect Regions to report an adjusted profit of $0.55 per share, up 5.8% from $0.52 per share reported in the year-ago quarter. The company has a mixed earnings surprise history. It surpassed Wall Street’s bottom-line thrice over the past four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter grew by an impressive 16.3% year-over-year to $0.57, exceeding analysts’ estimates by a substantial 7.6%.

However, for fiscal 2024, Regions’ adjusted EPS is expected to decline 5.4% from $2.24 in fiscal 2023 to $2.12. While in 2025, its adjusted EPS is expected to grow 7.6% year-over-year to $2.28.

RF stock has gained 21.4% over the past year, slightly underperforming the S&P 500 Index’s ($SPX) 23.3% returns and the Financial Select Sector SPDR Fund’s (XLF) 28.5% surge during the same time frame.

Despite reporting better-than-expected earnings, Regions Financial’s stock prices observed a marginal drop after the release of its Q3 results on Oct. 18 as its overall performance remained mixed. The banking major reported a 5.7% year-over-year drop in net interest income to $1.2 billion due to lower loan volumes. Meanwhile, it experienced a 2.6% decline in deposits in its Consumer Bank segment compared to the year-ago quarter to $78.9 billion. The improvement in its non-GAAP profitability was primarily driven by an increase in non-interest income and a 2.2% decline in total non-interest income to $1.1 billion.

The consensus opinion on RF stock is moderately bullish with an overall “Moderate Buy” rating. Out of the 23 analysts covering the stock, 10 recommend “Strong Buy,” two advise “Moderate Buy,” 10 suggest “Hold,” and one advocates a “Strong Sell” rating.

Regions’ mean price target of $28.07 represents a notable 19.3% premium to current price levels.