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New York-based M&T Bank Corporation (MTB) is the holding company for M&T Bank and Wilmington Trust and operates through four main segments: Business Banking, Commercial Banking, Commercial Real Estate, and Discretionary Portfolio across New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia. Its market cap currently stands at $25.3 billion. MTB is scheduled to release its fiscal 2024 Q2 earnings results before the market opens on Thursday, Jul. 18.
Ahead of the event, analysts expect M&T Bank to report a profit of $3.54 per share, down 30.9% from $5.12 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in two of the last four quarters, missing on two occasions.
M&T Bank’s EPS of $3.09 for the last reported quarter declined 24.4% year over year and failed to beat the consensus estimate by 1.3% amid macroeconomic headwinds and MTB’s shrinking commercial real estate and residential real estate loans.
Looking ahead, analysts expect M&T Bank to report an EPS of $13.99 in fiscal 2024, down 13% from $16.08 in fiscal year 2023. However, its fiscal 2025 EPS is projected to rise 15.4% annually to $16.14.
Over the past 52 weeks, MTB’s stock has surged by 17%, trailing behind the broader S&P 500 Index's ($SPX) 24.3% gains and the Financial Select Sector SPDR Fund’s (XLF) 22.6% returns during the same period.
Against the backdrop of a sky-high interest rate environment, M&T Bank began 2024 steadily, with first-quarter revenue meeting expectations, but it narrowly missed EPS estimates. In the first quarter, the bank’s average deposits remained stable, with a slight decline in noninterest-bearing deposits offset by a small increase in interest-bearing deposits. After the company's Q1 earnings release on Apr. 15, MTB stock surged by 4.7%.
Also, MTB stock popped 1.3% on July 2 after the asset management company emerged as the top-scoring regional bank in the Federal Reserve's stress test last week, outperforming most major U.S. banks. This achievement propelled MTB to the top position in Morgan Stanley’s (MS) midcap banks earnings preview. Analysts attribute this bullish movement to MTB's robust performance in the stress test, coupled with improved credit metrics and stable deposit costs, which are expected to bolster its net interest margins.
The current consensus opinion on M&T Bank stock is “Moderate Buy” overall. Out of 22 analysts covering the stock, eight suggest a “Strong Buy,” two recommend a “Moderate Buy,” and 12 advise a “Hold.”
Furthermore, the average analyst price target for MTB is $164.23, indicating a potential upside of 10.1% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
