UMB Financial Q2 adjusted EPS smashes expectations
Overview
UMB Financial Q2 net income rises 112.5% yr/yr to $215.4 mln
Adjusted EPS of $4.06 beats analyst expectations, per LSEG data
Net interest income up 17.4% from Q1, driven by organic growth and acquisition
Result Drivers
ACQUISITION IMPACT - Financial results include three months of impact from the acquired Heartland Financial, USA, Inc. operations, contributing to revenue growth, improved asset quality, and net interest margin expansion, per CEO Mariner Kemper
INVESTMENT GAINS - Noninterest income rose 33.7% from the previous qtr, driven by pre-tax gains of $37.7 mln from investments in private entities, including $29.4 mln from Voyager Technologies IPO
LOAN AND DEPOSIT GROWTH - Average loans increased 12.7% on a linked-qtr basis to $36.4 bln, while average deposits rose 10.7% to $55.6 bln, reflecting both organic growth and the impact of the HTLF acquisition
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Beat | $4.06 | $2.4 (10 Analysts) |
Q2 EPS | $2.82 | ||
Q2 Net Income | $217.39 mln | ||
Q2 Net Interest Income | $467 mln | ||
Q2 Adjusted Operating Income | $225.38 mln | ||
Q2 Net Interest Margin | 3.1% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "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 UMB Financial Corp is $122.00, about 10.7% above its July 28 closing price of $108.95
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
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