Beacon Financial Q3 adjusted EPS misses estimates as loan growth slows

By Reuters News


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


Reuters Recommended Reads

  • Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

  • Oct 20 - United Community Banks posts Q3 net loss

  • Oct 21 - BankUnited's Q3 adjusted EPS misses estimates, non-interest income declines


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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.