Popular Earnings: Beats the Street Despite Profit Drop
Popular Inc. (NASDAQ:BPOP) posted lower net income in the second quarter compared with a year-earlier period. Popular is a publicly owned bank holding company that offers retail and commercial banking services through its main banking subsidiary, Banco Popular de Puerto Rico.
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Popular Inc. Earnings Cheat Sheet
Results: Net income for Popular Inc. fell to $65.7 million (63 cents per share) vs. $109.8 million ($1.11 per share) a year earlier. This is a decline of 40.2% from the year-earlier quarter.
Actual vs. Wall St. Expectations: Popular Inc. beat the mean analyst estimate of 41 cents per share.
Quoting Management: Mr. Richard L. Carrin, Chairman of the Board and Chief Executive Officer, said: “Two consistently positive trends stand out in this quarter’s results. First, our net interest margin and our revenue-generating capacity remain strong. Second, credit metrics keep improving. The decrease of $120 million in non-performing loans marks our largest quarterly decline in this credit cycle. Despite various headwinds we are continuing our progress.”
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 50 cents versus a mean estimate of net income of 30 cents per share.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 53 cents a share to 48 cents over the last ninety days. The average estimate for the fiscal year is now $1.92 per share, down from $1.98 sixty days ago.
Competitors to Watch: Doral Financial Corp., Oriental Financial Group Inc., First BanCorp., Eurobancshares Inc., R&G Financial Corporation, W Holding Company, Inc., Bank of America Corp., SunTrust Banks, Inc., Wells Fargo & Company, and The Bank of Nova Scotia.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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