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Valued at a market cap of $29.5 billion, M&T Bank Corporation (MTB) is a bank holding company that offers a wide range of financial products and services, including personal and business banking, wealth management, commercial lending, and investment services. The Buffalo, New York-based company is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Monday, Apr. 14.
Ahead of this event, analysts expect the bank holding company to report a profit of $3.46 per share, up 12% from $3.09 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters, while missing on another occasion. In Q4 2024, MTB’s EPS of $3.92 exceeded the forecasted figure by nearly 6%.
For the full year, analysts expect MTB to report EPS of $16.28, up 9.4% from $14.88 in fiscal 2024. Its EPS is expected to further increase 14.7% year over year to $18.68 in fiscal 2026.
Shares of MTB have rallied 27.8% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 8.9% rise, and the Financial Select Sector SPDR Fund’s (XLF) 20.4% return over the same time frame.
On Jan. 16, MTB released its Q4 results and delivered a better-than-expected performance. Both its adjusted earnings of $3.92 and revenue of $2.4 billion surpassed the consensus estimates. Moreover, the bottom-line figure improved by 39.5% from the year-ago quarter, while its tax-equivalent Net Interest Income (NII) rose marginally to $1.7 billion. MTB benefited from lower expenses and reduced provisions for credit losses. However, despite these positives, its stock plunged 2.4% after the earnings release. A decline in deposit balance and a fall in net interest margin to 3.6% might have weighed on investor sentiments and led to the stock's downward price movement.
Wall Street analysts are moderately optimistic about MTB’s stock, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, nine recommend "Strong Buy," one suggests a “Moderate Buy,” eight advise “Hold,” and one gives a “Strong Sell” rating. The mean price target for MTB is $219.03 which indicates a 21.9% potential upside from the current levels.
On the date of publication, Neharika Jain 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.
