Latest news with #regionalbanks
Yahoo
5 days ago
- Business
- Yahoo
Merchants Bancorp (MBIN) To Report Earnings Tomorrow: Here Is What To Expect
Diversified bank holding company Merchants Bancorp (NASDAQCM:MBIN) will be reporting results this Monday after market close. Here's what to look for. Merchants Bancorp missed analysts' revenue expectations by 12.7% last quarter, reporting revenues of $145.9 million, down 13.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts' net interest income estimates and a significant miss of analysts' EPS estimates. Is Merchants Bancorp a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Merchants Bancorp's revenue to be flat year on year at $159.2 million, slowing from the 17.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.12 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Merchants Bancorp has missed Wall Street's revenue estimates three times over the last two years. Looking at Merchants Bancorp's peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Atlantic Union Bankshares delivered year-on-year revenue growth of 86.2%, beating analysts' expectations by 12.5%, and Seacoast Banking reported revenues up 19.6%, topping estimates by 5%. Atlantic Union Bankshares traded down 1.9% following the results while Seacoast Banking's stock price was unchanged. Read our full analysis of Atlantic Union Bankshares's results here and Seacoast Banking's results here. There has been positive sentiment among investors in the regional banks segment, with share prices up 4% on average over the last month. Merchants Bancorp is up 3.9% during the same time and is heading into earnings with an average analyst price target of $41 (compared to the current share price of $34.69). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Pinnacle Deal With Synovus Sparks Questions on Talent Retention
Pinnacle Financial Partners Inc., which has had success luring talent from rivals disrupted by mergers in recent years, raised similar concerns about its own prospects after announcing the biggest regional bank deal so far this year. Shares of Pinnacle had been one of the best performers among regional banks in the US. But the stock tumbled Friday on news that the company had reached a deal to combine with Synovus Financial Corp. in an all-stock transaction valued at $8.6 billion.
Yahoo
23-07-2025
- Business
- Yahoo
The Bancorp (TBBK) To Report Earnings Tomorrow: Here Is What To Expect
Financial services company The Bancorp (NASDAQ:TBBK) will be announcing earnings results this Thursday after market close. Here's what you need to know. The Bancorp beat analysts' revenue expectations by 21.8% last quarter, reporting revenues of $175.4 million, up 41.7% year on year. It was a slower quarter for the company, with a significant miss of analysts' net interest income estimates and a miss of analysts' EPS estimates. Is The Bancorp a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting The Bancorp's revenue to grow 55.3% year on year to $193.3 million, improving from the 6.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.28 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Bancorp has missed Wall Street's revenue estimates four times over the last two years. Looking at The Bancorp's peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. City Holding delivered year-on-year revenue growth of 6.3%, beating analysts' expectations by 3%, and Texas Capital Bank reported revenues up 15.2%, topping estimates by 2.7%. Texas Capital Bank traded up 4.8% following the results. Read our full analysis of City Holding's results here and Texas Capital Bank's results here. There has been positive sentiment among investors in the regional banks segment, with share prices up 8.2% on average over the last month. The Bancorp is up 28.3% during the same time and is heading into earnings with an average analyst price target of $61 (compared to the current share price of $68.71). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
PNC & AIR are 2 Top Stocks to Watch After Earnings
In a busy week that includes much-anticipated quarterly reports, a pair of standouts among the finance and aerospace sectors shouldn't be overlooked. Sporting a Zacks Rank #2 (Buy), these two top-rated stocks are benefiting from strong business industries and are worthy of investors' consideration after exceeding their quarterly expectations on Wednesday and posting sound growth on their top and bottom lines. PNC's Q2 Results Lead Regional Banks Showcasing steady expansion in terms of loan growth and net interest income, PNC PNC continued to excel as a premier regional bank that sets itself apart through its investment solutions. Because of such, PNC belongs to the Zacks Financial-Investment Bank Industry, which is currently in the top 15% of over 240 Zacks industries. With its performance among the top tier of regional banks, PNC showed positive operating leverage (revenue outpacing expense growth) while accelerating customer acquisition and expansion in high-growth markets. Furthermore, PNC illustrated a strong capital position with a CET1 ratio of 10.5%, a key financial metric that measures a bank's core equity capital relative to its total risk-weighted assets and must be at least 8% for commercial banking institutions. PNC's Q2 sales were up 5% year over year to $5.68 billion, edging estimates of $5.61 billion. Even better, PNC's earnings spiked 16% to $3.85 per share compared to Q2 EPS of $3.30 a year ago. This surpassed the Zacks EPS Consensus of $3.56 by 8% with PNC now exceeding earnings expectations for 10 consecutive quarters. Image Source: Zacks Investment Research Additionally, PNC stock stands out after officially announcing it will be increasing its quarterly dividend by 10 cents to $1.70 per share, with an annual yield currently at a generous 3.51% and well above its industry average of 1.92%. Image Source: Zacks Investment Research AAR Sets the Tone for Aerospace-Defense Expectations Pivoting to the aerospace standout, this sector has been on fire this year in correlation with increased global defense spending, and AAR Corp's AIR results for its fiscal fourth quarter helped justify investors' enthusiasm. At the moment, AAR Corp's Zacks Aerospace-Defense Equipment Industry is in the top 30% of all Zacks industries. As a brief overview, AAR Corp is headquartered in Illinois and was incorporated in 1951, providing various products and services to the aviation and defense industries worldwide. Notably, AAR Corp's principal customers include The Boeing Company BA and Airbus Group EADSY. AAR Corp's Q4 sales were up 15% to $754.5 million and impressively topped estimates of $691.02 million by 9%. Taking advantage of increased demand, AAR Corp's Q4 earnings soared 32% to $1.16 per share from EPS of $0.88 in the comeparative quarter. More impressive, AAR Corp comfortably surpassed its Q4 earnings expectations of $1.00 per share and has now reached or exceeded the Zacks EPS Consensus for a remarkable 30 consecutive quarters, dating back to March of 2018. Image Source: Zacks Investment Research As one of the market's top performers this year, AAR Corp's stock is up +40% in 2025 and is sitting on gains of more than +100% in the last three years, with the company's quarterly earnings consistency also illustrated by the green arrows in the Price, Consensus, and EPS Surprise chart below. Image Source: Zacks Investment Research Conclusion & Final Thoughts Following their strong quarterly results, what further makes PNC and AAR Corp's stock stand out is their attractive valuations, with both checking a 'B' Zacks Style Scores grade for Value. Trading at very reasonable forward earnings multiples of less than 17X, respectively, PNC and AAR Corp's stock also trade well under the optimum level of less than 2X forward sales. Keeping this in mind, investors certainly shouldn't overlook their impressive reports, making now a good time to buy these top-rated stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report AAR Corp. (AIR) : Free Stock Analysis Report The Boeing Company (BA) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Regional Banks' Torrid Rally Draws Bearish Bets as Earnings Loom
(Bloomberg) -- A breakout rally in the shares of US regional banks may be setting investors up for disappointment, according to some Wall Street strategists, who recommend betting on a pullback in the sector as earnings season gets underway. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On The SPDR S&P Regional Banking ETF (KRE), an exchange-traded fund that tracks the performance of Main Street lenders, is up more than 8% over the last month, nearly double the S&P 500 Index's gains over the same period. Tailwinds for the sector include the prospects of an M&A boom, an easier regulatory environment and expectations of higher-for-longer interest rates. That rally, however — the ETF is up 29% from its April low — may have left the stocks more vulnerable to bad news ahead of earnings season, which kicks off next week. While Wall Street is still generally bullish on the sector, strategists at firms including Susquehanna International Group say now is the time to play defense. 'After such a strong rally over such a short period of time, investors should be careful about chasing it up at these levels,' said Matt Maley, chief market strategist at Miller Tabak. 'It's quite possible that we might see a 'sell the news' reaction when they start to report.' Christopher Jacobson, co-head of derivatives strategy at Susquehanna, on Monday wrote that investors should buy short-term puts on KRE to hedge gains through next week's consumer-price index report and the start of earnings season. He had earlier suggested buying bullish calls on the ETF. Some market participants may already be thinking along those lines. On Tuesday, a trader laid out over $700,000 on a bet that KRE will fall from about $63 a share to as low as $59.50 by July 18 in an options strategy known as a put spread. Another trader on that day bought bearish options on KeyCorp, a lender based in Cleveland, Ohio. The investor paid around $450,000 for the right to buy nearly 3 million KeyCorp shares below the current level. In a July 9 note, Jacobson highlighted the KRE put-spread buyer as a sign that some investors are growing skeptical of the longevity of the regional bank rally. Economic Barometer Investors view regional lenders as an important barometer for the health of the US economy, as mid-sized banks tend to be more sensitive to changes in credit conditions and the housing market than their giant peers. A crisis sparked by the failure of Silicon Valley Bank slammed the sector in 2023 and prompted lenders to expand retail deposits and restructure bond portfolios. With the group roaring back from April's tariff-induced swoon, chart-watchers note that regionals have momentum on their side: KRE has gained 6.1% after topping its 200-day moving average in late June. The ETF is up 4.6% year-to-date. Analysts at HSBC remain bullish on the largest regional banks, keeping buy ratings on US Bancorp, PNC Financial Services Group Inc. and Truist Financial Corp. while turning more bearish on JPMorgan Chase & Co. and Goldman Sachs Group Inc. But they warned that asset quality deterioration or signs the regulatory environment will be less favorable than hoped, could hurt the likes of US Bank, PNC and Truist. 'There are some near-term risks facing the KRE,' said Terry McEvoy, a bank analyst at Stephens Inc. Those include credit quality risks and competitive pricing pressures that could impact net interest income, said McEvoy, who remains optimistic on the group's long-term prospects. So does Maley, of Miller Tabak. Though the regionals could sell off in coming weeks, 'investors should see a better level to add to positions later this summer,' he said. Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too ©2025 Bloomberg L.P.
