Live Oak Bancshares Q3 revenue beats estimates as loan production increases
Overview
U.S. regional bank's Q3 revenue rose 23% yr/yr, beating analyst expectations
Net income attributable to common shareholders fell 5% yr/yr, diluted EPS was $0.52
Q3 provision for credit losses in rose to $54.7 mln, driven by stressed distillery portfolio and loan growth
Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release
Result Drivers
REVENUE GROWTH OUTPACES EXPENSES - Co said revenue growth was meaningfully ahead of expense growth, supporting earnings power
RECORD LOAN PRODUCTION - Co reported strong loan production of $2.1 bln in Q3, with total assets up 5.8% sequentially
ELEVATED PROVISION EXPENSE - Higher provision for credit losses was driven by action on stressed distillery portfolio and reserves for loan growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $175.65 mln | $159.40 mln (4 Analysts) |
Q3 EPS | $0.52 | ||
Q3 Net Income | $24.26 mln | ||
Q3 Net Interest Income | $133.009 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 Live Oak Bancshares, Inc. is $42.50, about 20.2% above its October 20 closing price of $35.36
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition
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Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth
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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.)