Texas Capital Q4 revenue beats estimates, net income up 44%

Overview

• Financial services firm's Q4 revenue rose, beating analyst expectations

• Net income for Q4 rose 44% yr/yr to $96.3 mln

• Company authorized new $200 mln share repurchase program

Outlook

• Company did not provide specific guidance for future quarters or full year in its press release

Result Drivers

• NET INTEREST INCOME - Increase in average earning assets and decrease in funding costs drove net interest income growth

• CREDIT LOSS PROVISION - Lower provision for credit losses contributed to higher net income

• EXPENSE MANAGEMENT - Decrease in non-interest expenses supported profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Texas Capital Bancshares Inc is $98.00, about 4.2% below its January 21 closing price of $102.28

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX1F2Fpr

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