Trustmark Q2 revenue up 2.1% but misses estimates

Overview

• Trustmark Q2 revenue rises 2.1% but misses analyst expectations

• Net income for Q2 totals $55.8 mln, with diluted EPS of $0.92

• Co repurchased $11.0 mln of common stock during the quarter

Outlook

• Company did not provide specific future financial guidance in the press release

Result Drivers

• LOAN GROWTH - Loans held for investment increased 1.7% linked-quarter, contributing to revenue growth

• CREDIT QUALITY - Stable credit quality with a decline in nonperforming assets and low net charge-offs

• DEPOSIT MANAGEMENT - Growth in noninterest-bearing deposits and reduced cost of total deposits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 Trustmark Corp is $43.00, about 10.4% above its July 21 closing price of $38.52

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw5TqtTla