On January 8, Zacks Investment Research upgraded
) to Zacks Rank #1 (Strong Buy).
Why the Upgrade?
IberiaBank has been witnessing rising earnings estimates on the
back of its strong third-quarter 2012 results. Moreover, this
Southeast American bank delivered positive earnings surprises in
the last five quarters with an average beat of 17.7%. The
long-term expected earnings growth rate for this stock is 9.0%.
IberiaBank reported third-quarter (ended September 30) results on
October 23, 2012. Non-GAAP earnings per share came in at 83
cents, surpassing the Zacks Consensus Estimate by 48.2%.
Earnings were primarily aided by a year-over-year growth of 6.3%
in net interest income and a 25.4% surge in non-interest income,
partially offset by a 10.3% increase in operating expenses.
Further, asset quality at IberiaBank improved considerably. The
ratio of nonperforming assets to total assets was 0.81%, down 8
basis points from the prior-year quarter. Allowance for loan
losses to loans was 1.10%, down 24 bps year over year.
Total loans as of September 30, 2012, increased 14.8% year over
year to $8.2 billion. Moreover, deposits hiked 7.9% year over
year to $9.9 billion.
The Zacks Consensus Estimate for 2012 increased 0.8% to $2.62 per
share as all the estimates were revised higher over the last 60
Other Stocks to Consider
Other banking stocks that are currently performing well include
Cardinal Financial Corp.
First Interstate Bancsystem Inc.
). Both carry Zacks Rank #1 (Strong Buy).
CARDINAL FINL (CFNL): Free Stock Analysis
FIRST INTST MT (FIBK): Free Stock Analysis
IBERIABANK CORP (IBKC): Free Stock Analysis
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