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M&T Bank (MTB) Lags on Q3 Earnings and Revenue Estimates

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Have you been eager to see how M&T Bank Corporation (MTB - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based major bank’s earnings release this morning:

An Earnings Miss

M&T Bank came out with net operating earnings per share of $2.24, lagged the Zacks Consensus Estimate of $2.40.  Results reflect lower non-interest income and higher expenses, partially offset by lower provision for credit losses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for M&T Bank depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last seven days.

Regarding earnings surprise history, before posting an earnings miss in Q3, the company delivered positive earnings surprises in three of the trailing four quarters, with an average positive surprise of 4.66% in the trailing four quarters.

M&T Bank Corporation Price and EPS Surprise

Revenue Came In Lower Than Expected   

M&T Bank posted revenues of $1.42 billion, which lagged the Zacks Consensus Estimate of $1.43 billion. However, it compared favorably with the year-ago number of $1.35 million.

Key Takeaways
 

  • Net interest margin came in at 3.53%, up 48 basis points year over year.
  • Non-interest expense of $806 million increased 7.2% year over year.
  • Allowance for credit losses of $1.01 billion increased 3.8% year over year.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for M&T Bank. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this M&T Bank earnings report!

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