Have you been eager to see how M&T Bank Corporation (NYSE:MTB) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based major bank’s earnings release this morning:
An Earnings Beat
M&T Bank came out with net operating earnings per share of $2.38, beating the Zacks Consensus Estimate of $2.28. Earnings beat reflected higher revenues, partially offset by higher provision for credit losses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for M&T Bank depicted optimism prior to the earnings release. The Zacks Consensus Estimate increased slightly over the last 7 days.
Regarding earnings surprise history, before posting an earnings beat in Q2, the company delivered positive earnings surprises in two of the trailing four quarters, with an average positive surprise of 3.44% in the trailing four quarters.
M&T Bank Corporation Price and EPS Surprise
Revenue Came In Lower Than Expected
M&T Bank posted net revenues of $1,399 million, which lagged the Zacks Consensus Estimate of $1,401.6 million. However, it compared favorably with the year-ago number of $1,312 million.
Key Takeaways
- Net interest margin came in at 3.45%, up 32 basis points year over year.
- Non-interest expense of $751 million decreased slightly year over year.
- Efficiency ratio improved to 52.7% in quarter from 55.1% in the prior year quarter. Generally, a lower ratio indicates increased efficiency.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for M&T Bank. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
How the Market Reacted So Far
Following the earnings release, M&T Bank’s shares were up slightly in the pre-trading session. This is in contrast to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this M&T Bank earnings report!
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M&T Bank Corporation (MTB): Free Stock Analysis Report
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