Regional banking company M&T Bank (NYSE: MTB) will be reporting results tomorrow before market hours. Here’s what investors should know.
M&T Bank beat analysts’ revenue expectations last quarter, reporting revenues of $2.52 billion, up 4.9% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a narrow beat of analysts’ net interest income estimates.
Is M&T Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting M&T Bank’s revenue to grow 1.5% year on year, slowing from the 9.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. M&T Bank has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at M&T Bank’s peers in the banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Home Bancshares delivered year-on-year revenue growth of 5.4%, missing analysts’ expectations by 1.7%, and FB Financial reported flat revenue, falling short of estimates by 2.8%. FB Financial traded down 4.8% following the results.
Read our full analysis of Home Bancshares’s results here and FB Financial’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6% on average over the last month. M&T Bank is down 4.4% during the same time and is heading into earnings with an average analyst price target of $250.28 (compared to the current share price of $216.05).
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