Have you been eager to see how M&T Bank Corporation (NYSE:MTB) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based major bank’s earnings release this morning:
An Earnings Beat
M&T Bank came out with adjusted earnings per share of $2.66 that surpassed the Zacks Consensus Estimate of $2.40. Results reflect higher revenues, partially offset by higher expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for M&T Bank depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last seven days.
Regarding earnings surprise history, before posting an earnings beat in Q4, the company delivered positive earnings surprises in two of the trailing four quarters, with an average positive surprise of 1.89% in the trailing four quarters.
M&T Bank Corporation Price and EPS Surprise
Revenue Came In Higher Than Expected
M&T Bank posted revenues of $1.46 billion, which surpassed the Zacks Consensus Estimate of $1.42 billion. Further, it compared favorably with the year-ago number of $1.35 million.
Key Takeaways
- Net interest margin came in at 3.56%, up 48 basis points year over year.
- Non-interest expense of $796 million increased 3% year over year.
- Allowance for credit losses of $1.02 billion increased 3% year over year.
- The estimated incremental income tax expense recorded by M&T Bank in the quarter related to the Tax Act was $85 million or 56 cents of diluted earnings per share.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for M&T Bank. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Check back later for our full write up on this M&T Bank earnings report!
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M&T Bank Corporation (MTB): Free Stock Analysis Report
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