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