On Aug 31, Zacks Investment Research upgraded
Eagle Bancorp, Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Eagle Bancorp has been witnessing rising earnings estimates on
the back of strong second-quarter 2013 results. Moreover, this
well-known commercial and consumer banking services provider
delivered positive earnings surprises in 3 of the last 4 quarters
with an average beat of 9.7%. The long-term expected earnings
growth rate for this stock is 12%.
Eagle Bancorp reported its second-quarter results on Jul 22 with
earnings per share of 44 cents, beating the Zacks Consensus
Estimate of 42 cents by 4.8% and the year-ago earnings of 33
cents by 33.3%. Robust results for the reported quarter were
primarily aided by elevated net revenue and lower provisions for
loan losses, partially offset by elevated non-interest expenses.
Net revenue surged 18.6% year over year to $42 million. This
upsurge reflected growth in net interest and non-interest income.
Provision for credit losses substantially declined 45.5% year
over year to $2.4 million.
However, on the downside, expenses increased 11.9% to $20.7
million for Eagle Bancorp, as compared with the prior-year
period. Higher salaries along with elevated employee benefits
primarily drove the increase.
Following second-quarter 2013 results, the Zacks Consensus
Estimate for 2013 increased 4.2% to $1.75 per share, over the
last 60 days. For 2014, the Zacks Consensus Estimate advanced
6.7% to $1.91 per share over the same time period.
Other Stocks to Consider
Besides Eagle Bancorp, other Northeast banks with a Zacks Rank #1
Metro Bancorp, Inc.
Webster Financial Corp.
EAGLE BCP INC (EGBN): Free Stock Analysis
METRO BANCORP (METR): Free Stock Analysis
SIGNATURE BANK (SBNY): Free Stock Analysis
WEBSTER FINL CP (WBS): Free Stock Analysis
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