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Renasant Q3 adjusted EPS misses analyst estimates; net income up on loan growth

By Reuters News


Overview

  • U.S. regional bank's Q3 adjusted EPS missed analyst expectations

  • Company approved new $175 mln stock repurchase program

  • Quarter saw record loan production and strong loan growth

  • Q3 net income increased to $78.9 compared to last year


Outlook

  • Company expects to focus on growing customer relationships and hiring talent in coming quarters

  • Company sees mortgage banking income pressured by higher interest rates impacting loan production


Result Drivers

  • LOAN GROWTH - Co said results were driven by record loan production and strong net loan growth

  • MORTGAGE SLOWDOWN - Co said higher mortgage rates led to lower mortgage banking income and reduced new loan production

  • EXPENSE DISCIPLINE - Co attributed lower noninterest expense to reduced deferred compensation and higher deferred loan costs, partly offset by increased health insurance claims


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Miss

$0.86

$0.94 (6 Analysts)

Q3 EPS

$0.86

Q3 Net Income

$78.95 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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

  • Wall Street's median 12-month price target for Renasant Corp is $47.00, about 12.6% above its October 26 closing price of $41.75

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


Reuters Recommended Reads

  • Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth

  • Oct 27 - UMB Financial Q3 profit rises on record loans

  • Oct 26 - German American Bancorp Q3 net income rises on higher yields and margin expansion


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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