QCR Holdings Q3 adjusted EPS beats analyst estimates

Overview

• US multi-bank holding company Q3 adjusted EPS and net income beat analyst expectations

• Company attributes record Q3 results to margin expansion and robust loan growth

• Company repurchased $9.5 mln in shares during the quarter

Outlook

• Company reaffirms Q4 gross loan growth guidance of 10% to 15% annualized

• Company expects fourth quarter net interest margin (TEY) to remain relatively static

• Company expects Q4 capital markets revenue of $18 mln to $20 mln

Result Drivers

• MARGIN EXPANSION - Co said net interest margin increased 3 basis points to 3.58% TEY, supporting net interest income growth

• LOAN GROWTH - Co reported 11% annualized loan growth excluding m2 portfolio runoff

• CAPITAL MARKETS REVENUE - Capital markets revenue rose 10% on a linked-quarter basis

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold."

• Wall Street's median 12-month price target for QCR Holdings Inc is $109.00, about 11.8% above its October 19 closing price of $97.48

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin

• Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

• Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)