Prosperity Bancshares Q2 adjusted EPS beats estimates

Overview

• US regional bank's Q2 adjusted EPS rose 14% yr/yr, beating analyst expectations

• Q2 net income increased 20% yr/yr, driven by higher net interest income and securities gains

• Company completed Stellar Bancorp merger after quarter end and repurchased 200,000 shares in Q2

Outlook

• Company did not provide specific guidance for the current quarter or full year in its press release

Result Drivers

• NET INTEREST INCOME - Higher net interest income and margin, primarily due to asset repricing, lower borrowing costs, and the impact of the American and Southwest mergers

• NONINTEREST INCOME GAINS - Noninterest income rose, mainly due to the American and Southwest mergers and a gain on Visa stock exchange and securities sales

• HIGHER NONINTEREST EXPENSES - Noninterest expenses increased, mainly from higher salaries, benefits, and costs related to the American and Southwest mergers

Company press release: ID:nPn4Nv2K5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Prosperity Bancshares, Inc is $80.00, about 8.8% above its July 28 closing price of $73.55

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 27 - Northwest Bancshares Q2 net income rises 59% to record on higher net interest income

• July 28 - Regional bank Renasant Q2 adjusted EPS beats analyst estimates

• July 28 - First Commonwealth Financial Q2 adjusted EPS beats estimates, net interest margin rises

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)