Regional banking company Valley National Bancorp (NASDAQ:VLY) will be reporting earnings this Thursday before the bell. Here’s what investors should know.
Valley National Bank missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $478.4 million, up 5.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ net interest income estimates.
Is Valley National Bank a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Valley National Bank’s revenue to grow 8.7% year on year to $492.5 million, a reversal from the 5.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Valley National Bank has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Valley National Bank’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. City Holding delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 3%, and Texas Capital Bank reported revenues up 15.2%, topping estimates by 2.7%. Texas Capital Bank traded up 4.8% following the results.
Read our full analysis of City Holding’s results here and Texas Capital Bank’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 8.2% on average over the last month. Valley National Bank is up 11.5% during the same time and is heading into earnings with an average analyst price target of $10.45 (compared to the current share price of $9.87).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.