Butterfield Q2 revenue misses estimates
Overview
Butterfield Q2 revenue missed analyst expectations
Co's adjusted EPS beat estimates, per LSEG data
Company increased quarterly cash dividend by 14% to $0.50 per share
Butterfield authorized new share repurchase program for up to 1.5 mln shares
Result Drivers
FOREIGN EXCHANGE REVENUE - Volume-driven decrease in foreign exchange revenue impacted net income,
CREDIT LOSSES - Higher allowance for credit losses contributed to a decline in core net income, per CEO Michael Collins
INTEREST INCOME - Marginal increase in net interest income due to lower cost of deposits and higher yield on investments
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $146.30 mln | $146.90 mln (4 Analysts) |
Q2 Adjusted EPS | Beat | $1.26 | $1.25 (4 Analysts) |
Q2 Adjusted Net Income |
| $53.70 mln |
|
Q2 Net Income |
| $53.30 mln |
|
Q2 Net Interest Income |
| $89.40 mln |
|
Q2 Credit Loss Allowance |
| -$25.70 mln |
|
Q2 Dividend |
| $0.5 |
|
Q2 Pretax Profit |
| $54.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Bank of NT Butterfield & Son Ltd is $51.50, about 13.8% above its July 25 closing price of $44.37
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release: ID:nBw5JdNlKa
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