Home BancShares Q3 revenue rises on net interest income strength

Overview

• U.S. bank holding company's Q3 revenue rose but missed analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company repurchased 1.3 mln shares in Q3 and raised dividend

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• NET INTEREST INCOME - Co said strong net interest income generation and lower credit loss expense drove results

• REVENUE GROWTH - Q3 revenue growth reflected continued strength in net interest income and the company's banking operations

• FUNDING COSTS - Co said decreased interest expense reflected improved funding costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "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 Home BancShares Inc is $32.00, about 13.1% above its October 14 closing price of $28.29

• 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 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

• Oct 13 - Citigroup Q3 revenue rises, partly on strength in services, wealth segments

• Oct 14 - Equity Bancshares Q3 core EPS rises on loan growth, lifts dividend

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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.)