Simmons First National Q2 adjusted EPS misses estimates as credit-loss provisions rise
SFNC•Result drivers and outlook
- Net interest income — Higher loan interest income and lower interest expense year over year drove net interest income growth.
- Expense control — Adjusted noninterest expense was flat sequentially as efficiency initiatives offset higher specific costs.
- Noninterest income — Higher swap fee income and a positive SBIC investment valuation boosted noninterest income.
Company expects to sharpen focus on efficiency initiatives for the remainder of the year. Simmons believes efficiency actions will fund investments to enhance the organic growth outlook.
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Adjusted EPS | Miss | $0.50 | $0.52 (7 Analysts) |
| Q2 EPS | $0.46 | ||
| Q2 Adjusted Net Income | Miss | $72.20 mln | $75.44 mln (5 Analysts) |
| Q2 Net Income | $66.70 mln | ||
| Q2 Net Interest Income | $200.60 mln | ||
| Q2 Net Interest Margin (%) | 3.84% |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell". The average consensus recommendation for the banks peer group is "buy". Wall Street's median 12-month price target for Simmons First National Corp is $24.00, about 3.3% above its July 15 closing price of $23.23. The stock recently traded at 11 times the next 12-month earnings versus a P/E of 10 three months ago.
