Valley National Bancorp Q3 revenue rises, beats analyst estimates

By Reuters News


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.)

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