Overview
U.S. regional bank's Q1 core EPS and core net income missed analyst expectations
Net income and core net income rose yr/yr but fell from prior quarter
Company raised quarterly dividend 3.7% and repurchased 1.3 mln shares
Outlook
Company expects continued momentum across core businesses through the yr
Result Drivers
NET INTEREST INCOME DECLINE - Net interest income fell $4.2 mln from prior quarter due to fewer days in the quarter, lower average loans, and net interest margin compression
HIGHER PROVISION EXPENSE - Provision for credit losses rose $3.7 mln from prior quarter, mainly due to increased reserves for individually analyzed commercial credits
NONINTEREST EXPENSE INCREASE - Noninterest expense rose $1.2 mln from prior quarter, driven by higher tax, salary, and occupancy costs including increased snow removal expense
Company press release: ID:nGNX9MGBB3
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
Miss
$0.37
$0.40 (6 Analysts)
Q1 EPS
$0.37
Q1 Core Net Income
Miss
$37.46 mln
$41.12 mln (6 Analysts)
Q1 Net Income
$37.55 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 First Commonwealth Financial Corp is $20.50, about 10% above its April 27 closing price of $18.64
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)