Beacon Financial Q3 adjusted EPS misses estimates as loan growth slows
Overview
U.S. regional bank's Q3 adjusted EPS missed analyst expectations, operating earnings held steady
Company increased stock buyback authorization to $125 mln
Net interest income improved, but loan growth slowed due to macro uncertainty and higher rates
Company's board approved a dividend of $0.3225 per share for the quarter ended September 30
Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release
Result Drivers
LOAN GROWTH SLOWDOWN - Higher rates and macro uncertainty led to greater borrower caution and weighed on overall loan growth, per CEO Sean Gray
NET INTEREST INCOME - Net interest income rose $3.9 mln from the prior qtr to $197.2 mln, net interest margin increased 4 basis points to 3.85%
CREDIT COSTS - Provision for credit losses rose to $8.9 mln, mainly due to deterioration of three larger commercial real estate loans
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Miss | $0.77 | $0.79 (6 Analysts) |
Q3 EPS | $0.73 | ||
Q3 Credit Loss Provision | $8.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "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 Beacon Financial Corporation is $33.00, about 18.3% above its October 20 closing price of $27.90
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
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Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
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Oct 21 - BankUnited's Q3 adjusted EPS misses estimates, non-interest income declines
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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.)