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Tale of the Tape

Zacks Equity Research

M&T Bank (MTB) Beats on Q3 Earnings, Revenues Up Y/Y
October 19, 2016


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

An Earnings Beat

M&T Bank came out with net operating earnings per share of $2.13 for third-quarter 2016, surpassing the Zacks Consensus Estimate by 9 cents per share.  

Earnings beat reflected increased revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for M&T Bank was stable prior to the earnings release. The Zacks Consensus Estimate remained unchanged at $2.04 over the last 7 days.

Regarding earnings surprise history, before posting earnings beat in Q3, the company delivered positive earnings surprise in one of the trailing four quarters.

M&T BANK CORP Price and EPS Surprise


M&T BANK CORP Price and EPS Surprise | M&T BANK CORP Quote

Revenue Came In Higher Than Expected

M&T Bank posted revenues of $1.35 billion, which surpassed the Zacks Consensus Estimate of $1.32 billion. Moreover, it compared favorably with the year-ago number of $1.13 billion.

Key Takeaways

Net operating income came in at $355.9 million, up 26% year over year.

Net interest income increased 24% year over year to $858.3 million.

Non-interest expense of $752 million increased 15% year over year.

Efficiency ratio declined to 55.9% in quarter from 57.05% in the prior year quarter. Generally, a lower ratio indicates improved efficiency.

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. Now, 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 (Strong Buy) Rank stocks here.)

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

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