First Citizens rises after Q2 profit beats estimates
Shares rise after quarterly beat
Regional lender First Citizens Bancshares' FCNCA.O shares rose 3.7% to $2,153.73 after the company sailed past Wall Street estimates for Q2 profit, helped by release of credit-loss provisions.
"It's a good quarter from First Citizens, with a large beat driven not just by a provision reversal but also by higher than expected core revenues," Piper Sandler analyst Stephen Scouten said.
Meanwhile, net interest income rose $35 million sequentially to $1.66 billion.
"The key debate here is net interest income - recall it peaked back in 2023 and declined almost (20)% since. 2Q shows some sequential growth," Truist analyst Brian Foran said.
"This is a heavily shorted name and at the moment the stock is getting a bit of a bounce on the hope that they are past the bottom."
Up to last close, the stock was down 3.2% year to date.
