Westamerica Bancorporation (NASDAQ: NASDAQ:WABC), said on Thursday, that its Board of Directors has declared a quarterly cash dividend of $0.44 per share on common stock. Shareholders of record by the close of business on August 5, 2024, will be eligible for the dividend, which is scheduled for payment on August 16, 2024.
The declaration follows the company's recent earnings report on July 18, where Westamerica disclosed a net income of $35.5 million for the three months ended June 30, 2024. This figure translates to $1.33 diluted earnings per share.
The company's Chairman, President, and CEO David Payne highlighted the dividend as a reflection of Westamerica's consistent earnings, robust financial position, and prudent risk management.
Westamerica Bancorporation operates through its wholly-owned subsidiary, Westamerica Bank, which has a network of banking and trust offices across Northern and Central California.
Meanwhile, Westamerica Bancorp's second-quarter 2024 earnings per share (EPS) of $1.33 slightly surpassed both Piper Sandler's and the consensus estimates. The bank's performance was notable as it did not record a provision for credit losses, backed by strong credit metrics. However, the net interest income (NII) was slightly below expectations due to a smaller earning asset base than anticipated.
Piper Sandler raised Westamerica Bancorp's price target to $57.00, maintaining a Neutral rating. However, financial firms Keefe, Bruyette & Woods, and Piper Sandler revised their outlooks, reducing their price targets due to a decrease in revenues and lower earnings estimates.
InvestingPro Insights
In the wake of Westamerica Bancorporation's (NASDAQ: WABC) dividend announcement, a glance at the company's financials through InvestingPro offers a deeper understanding of its performance and potential. With a market capitalization of approximately $1.47 billion and a price-to-earnings (P/E) ratio standing at 9.64, the bank appears to be valued reasonably in the market. The adjusted P/E ratio for the last twelve months as of Q2 2024 is closely aligned at 9.6, suggesting a consistent valuation over the recent period.
One of the key InvestingPro Tips for Westamerica Bancorporation is its impressive track record of raising its dividend for 31 consecutive years, underscoring a commitment to shareholder returns. Additionally, the bank has maintained dividend payments for an even more remarkable 50 years straight. This consistency in dividend payments is a testament to the company's financial stability and prudent management, attributes that may be particularly appealing to income-focused investors.
Despite a slight revenue growth of 0.09% in the last twelve months as of Q2 2024, the company has shown a strong return over the last month, with a 14.91% price total return, which is compelling when considering the broader market context. However, it's worth noting that two analysts have revised their earnings downwards for the upcoming period, which could be indicative of challenges ahead.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available for Westamerica Bancorporation, which can be found at https://www.investing.com/pro/WABC. To access these insights and more, use the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are in total 7 more InvestingPro Tips that can help investors make informed decisions about their investments in Westamerica Bancorporation.
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