Valley National (VLY) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

For the quarter ended March 2024, Valley National (VLY) reported revenue of $454.96 million, down 7.2% over the same period last year. EPS came in at $0.19, compared to $0.30 in the year-ago quarter.

The reported revenue represents a surprise of +1.70% over the Zacks Consensus Estimate of $447.38 million. With the consensus EPS estimate being $0.20, the EPS surprise was -5.00%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Valley National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio: 59.1% versus the six-analyst average estimate of 61.9%.
  • Net Interest Margin: 2.8% versus the six-analyst average estimate of 2.8%.
  • Annualized ratio of total net charge-offs (recoveries) to total average loans: 0.2% compared to the 0.1% average estimate based on five analysts.
  • Average Balance - Total interest earning assets: $56.62 billion compared to the $56.80 billion average estimate based on five analysts.
  • Net interest income - FTE: $394.85 million compared to the $395.99 million average estimate based on six analysts.
  • Total non-interest Income: $61.42 million compared to the $54.57 million average estimate based on six analysts.
  • Bank owned life insurance: $3.24 million versus the five-analyst average estimate of $3.41 million.
  • Gains on sales of loans, net: $1.62 million versus $2.01 million estimated by five analysts on average.
  • Insurance commissions: $2.25 million versus $3.01 million estimated by five analysts on average.
  • Wealth management and trust fees: $17.93 million compared to the $12.19 million average estimate based on five analysts.
  • Service charges on deposit accounts: $11.25 million versus the five-analyst average estimate of $10.02 million.
  • Fees from loan servicing: $3.19 million compared to the $2.76 million average estimate based on four analysts.
View all Key Company Metrics for Valley National here>>>

Shares of Valley National have returned -0.8% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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