Valley National Bancorp Q3 revenue rises, beats analyst estimates
Overview
US regional bank's Q3 revenue rose and beat analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company pursuing acquisitions of Providence Financial and Bluevine to expand market presence
Outlook
Company expects to achieve or exceed 15% ROATCE by end-2027
Valley National says it is positioned for a range of interest rate scenarios
Result Drivers
REVENUE GROWTH AND EXPENSE MANAGEMENT - Co attributed record net income to strong revenue growth and disciplined expense management, per CEO Ira Robbins
HIGHER NET INTEREST INCOME - Co said net interest income rose due to upward repricing of adjustable rate loans, higher yields on new loans, increased average loan balances, and one extra day in the qtr
NON-INTEREST INCOME - Co said non-interest income rose mainly due to recovery income from legal settlements, net valuation gains on fintech investments, and higher wealth management fees
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $584.15 mln | $577.19 mln (12 Analysts) |
Q3 Adjusted EPS | Beat | $0.36 | $0.33 (14 Analysts) |
Q3 Adjusted Net Income | Beat | $206.40 mln | $185.96 mln (13 Analysts) |
Q3 Net Income | $206.30 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 Valley National Bancorp is $17.00, about 30.6% above its October 21 closing price of $13.02
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin
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.)