Financial firm Hilltop reports rise in Q2 profit

Overview

• Hilltop Q2 income rises to $36.1 mln, $0.57/share, up from $20.3 mln, $0.31/share yoy

• Co repurchased 1.16 mln shares, increased buyback program by $35 mln

• Reversal of credit losses and higher net interest income boost results

Outlook

• Hilltop cites uncertain economic conditions impacting future financial performance

• Company notes external factors like interest rates and tariffs may affect results

Result Drivers

• CREDIT LOSS REVERSAL - $7.3 mln reversal driven by changes in U.S. economic outlook and loan portfolio adjustments

• BROKER-DEALER REVENUE - Segment saw 5% year-over-year improvement in net revenue despite volatile interest rates

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "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 Hilltop Holdings Inc is $34.00, about 10% above its July 24 closing price of $30.59

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBwRfk94a