Webster Financial beats Q2 revenue estimates

Overview

• Webster Financial Q2 revenue of $715.8 mln beats analyst expectations, per LSEG data

• Net income applicable to common stockholders rose to $251.7 mln from $175.5 mln

• Provision for credit losses decreased to $46.5 mln from $77.5 mln last qtr

Outlook

• Company maintains strong operating position, investing for future growth

• Webster sees improved asset quality metrics, positive for future performanc

Result Drivers

• REVENUE GROWTH - Webster's revenue increased to $715.8 million, surpassing analyst expectations, driven by higher net interest income and improved asset quality metrics

• CREDIT LOSS REDUCTION - Provision for credit losses decreased to $46.5 million, reflecting improved credit management

• ASSET QUALITY IMPROVEMENT - Webster's asset quality metrics improved, with decreased non-performing loans and leases, contributing to stronger financial results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "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 Webster Financial Corp is $65.00, about 10.1% above its July 16 closing price of $58.44

Press Release: ID:nBw2y7zhKa