Valley National Bancorp Earnings: Here’s Why Investors Like These Results

Valley National Bancorp (NYSE:VLY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.31%.

Valley National Bancorp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.17 in the quarter as EPS of $0.17 in the year-earlier quarter.

Revenue: Decreased 25.42% to $142.77 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Valley National Bancorp reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.15. It beat the average revenue estimate of $142.06 million.

Quoting Management: Gerald H. Lipkin, Chairman, President and CEO commented that, “Our earnings signaled some significant improvements during the second quarter of 2013. Our loan yields increased 6 basis points during the period as compared to a 27 basis point decline just one quarter ago. Loan delinquencies declined 19 basis points and our net loan charge-offs also remained at an exceptionally low level. These results are reflective of the quality of our balance sheet and the diligence of our management team to provide us a strong foundation in this difficult operating environment.” Mr. Lipkin added, “Our total loan originations were at a record level for the quarter and our commercial real estate pipeline appears to be strengthening, even with the slow moving economic recovery. Despite the expected negative impact of the recent increase in market interest rates on consumer refinance activity, our outlook, although guarded, remains positive for the housing recovery and the positive impact such higher rates will have on our net interest margin in future periods. If the housing market remains strong, we should continue to see steady demand for home purchases and refinance activity for multi-family loans as interest rates still remain at historically low levels.”

Key Stats (on next page)…

Revenue decreased 22.55% from $184.33 million in the previous quarter. EPS increased 13.33% from $0.15 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.16 to a profit $0.15. For the current year, the average estimate has moved down from a profit of $0.63 to a profit of $0.62 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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