On Friday, Piper Sandler adjusted its outlook on F.N.B. Corporation (NYSE:NYSE:FNB) shares, increasing the price target to $17.00 from the previous $15.00, while reaffirming an Overweight rating on the stock. This change follows the company's second-quarter earnings report.
F.N.B. Corporation announced second-quarter earnings per share (EPS) of $0.34, narrowly missing the anticipated figures by $0.01. This was attributed to a slight shortfall in net interest income (NII), which was a penny lower than expected, although other financial metrics were consistent with projections.
Management at F.N.B. Corporation has updated the full-year outlook, adjusting the net interest income forecast downward by 3%. Despite this, a 5% increase in the fee guide was noted.
However, the projected pre-provision net revenue (PPNR) fell short by approximately 3% compared to both previous estimates and the consensus prior to the earnings release.
The report also highlighted robust growth within the quarter, with loan balances increasing by 3.6%. This expansion was partially financed through borrowings. Additionally, the company continued to demonstrate strong credit results during the period.
The adjustment in F.N.B. Corporation's price target reflects the company's solid growth and performance, despite the slight earnings miss and adjustments in financial outlook for the year.
In other recent news, F.N.B. Corporation announced its financial results for a recent quarter, matching analyst expectations with an earnings per share (EPS) of $0.34. The company's revenue for the quarter was reported at $403.81 million, slightly below the consensus estimate of $408.09 million.
F.N.B. Corporation's net interest income for the quarter was $315.9 million, a 4.1% decrease mainly due to higher deposit costs and increased average borrowings. However, the company's loan and deposit growth remained robust, with period-end total loans and leases increasing by 7.7% YoY and period-end total deposits growing by 3.5%.
The company also reported a 9.5% increase in non-interest income compared to the same quarter last year. Notably, the company's capital position remained solid, with a Common Equity Tier 1 (CET1) regulatory capital ratio of 10.2%. F.N.B. Corporation also continued its share repurchase program, buying back 250,000 shares of common stock.
Despite the slight miss on revenue consensus, the consistent performance and strategic market share gains suggest a stable outlook for F.N.B. Corporation. This is supported by the company's strong asset quality, with non-performing loans and other real estate owned (OREO) ending at 0.33%, a multiyear low. These are some of the recent developments concerning F.N.B. Corporation.
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