Offshore banking group Butterfield Bank (NYSE: NTB) will be reporting earnings this Tuesday after market hours. Here’s what to expect.
Butterfield Bank beat analysts’ revenue expectations last quarter, reporting revenues of $159 million, up 8.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ net interest income estimates but a significant miss of analysts’ tangible book value per share estimates.
Is Butterfield Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Butterfield Bank’s revenue to grow 4.5% year on year, slowing from the 6.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Butterfield Bank has a history of exceeding Wall Street’s expectations.
Looking at Butterfield Bank’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Byline Bancorp delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 3.7%, and First Citizens BancShares reported flat revenue, topping estimates by 2%. Byline Bancorp traded up 1.1% following the results.
Read our full analysis of Byline Bancorp’s results here and First Citizens BancShares’s results here.
Investors in the regional banks segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Butterfield Bank is up 1.9% during the same time and is heading into earnings with an average analyst price target of $66 (compared to the current share price of $59.91).
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