Valley National (VLY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
A jump in provisions and lower revenues hurt Valley National's (VLY) Q2 earnings, while higher loan and deposit balances and a fall in expenses offer some support.
Valley National Bancorp shares fell 5% after Q2 earnings, but the market may be overreacting to concerns about its commercial real estate portfolio. Valley's loan growth is focused on business lending to diversify away from commercial real estate, with a declining exposure to NYC. Despite concerns about credit degradation, Valley's credit performance remains fairly typical, with modest deterioration and strong deposit performance.
While the top- and bottom-line numbers for Valley National (VLY) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Valley National (VLY) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.28 per share a year ago.
Valley National (VLY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Valley National Bancorp's stock is approaching a 52-week low due to struggles with high interest rates and issues in the banking sector. The bank has two preferred share offerings with high yield dividends, but there are risks to volatility here too. Risks include exposure to commercial real estate, low allowance for credit losses, high level of uninsured deposits, and a problematic loan to deposit ratio.
UMB Financial Corp. drew its first upgrade to outperform in at least 20 years while Valley National Bancorp was downgraded to market perform as KBW weighed bank balance sheet strength in the current higher-for-longer interest rate environment