Webster Financial beats Q2 revenue estimates

Reuters
Jul 17
Webster Financial beats <a href="https://laohu8.com/S/QTWO">Q2</a> revenue estimates

Overview

  • Webster Financial Q2 revenue of $715.8 mln beats analyst expectations, per LSEG data

  • Net income applicable to common stockholders rose to $251.7 mln from $175.5 mln

  • Provision for credit losses decreased to $46.5 mln from $77.5 mln last qtr

Outlook

  • Company maintains strong operating position, investing for future growth

  • Webster sees improved asset quality metrics, positive for future performanc

Result Drivers

  • REVENUE GROWTH - Webster's revenue increased to $715.8 million, surpassing analyst expectations, driven by higher net interest income and improved asset quality metrics

  • CREDIT LOSS REDUCTION - Provision for credit losses decreased to $46.5 million, reflecting improved credit management

  • ASSET QUALITY IMPROVEMENT - Webster's asset quality metrics improved, with decreased non-performing loans and leases, contributing to stronger financial results

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$715.80 mln

$641.10 mln (11 Analysts)

Q2 EPS

$1.52

Q2 Net Interest Income

$621.20 mln

Q2 CET1 Capital Ratio

11.3%

Q2 Credit Loss Provision

$46.50 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "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 Webster Financial Corp is $65.00, about 10.1% above its July 16 closing price of $58.44

Press Release: ID:nBw2y7zhKa

(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.)

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