Popular posts Q3 earnings beat while revenue misses estimates
Popular reported third-quarter results on October 22, with EPS of $4.21 above Wall Street's $3.95 forecast. Net income reached $266.3M, while revenue missed estimates and net interest income rose to $699M from $693M in the prior quarter. Management expects full-year loan growth of 2% and plans $150M-$200M of fourth-quarter buybacks.
Why it matters
The EPS beat was accompanied by weaker revenue, lower net interest margin, a $1.5B deposit decline and higher nonperforming loans, creating mixed implications for the bank's earnings outlook. The planned buybacks and higher dividend increase shareholder distributions, while Popular's loan-growth and net-interest-income outlooks set the main forward operating benchmarks.
Key facts
- 1Popular reported third-quarter EPS of $4.21 versus Wall Street's $3.95 forecast. investing.com
- 2Third-quarter net income was $266.3M. finance.yahoo.com
- 3Net interest income increased $6 million from the prior quarter to $699M. finance.yahoo.com
- 4Deposits declined by $1.5B, while nonperforming loans increased by $52 million to $466 million. finance.yahoo.com
- 5Popular returned $236 million to shareholders, including $179 million in buybacks, and raised its quarterly dividend by 20% to $0.90 per share. finance.yahoo.com
- 6The company plans $150M-$200M of fourth-quarter buybacks. seekingalpha.com
Open questions
- Reported Q3 revenue figures conflict across the materials: $874.59M, $1.18B and $816M are each stated for the same quarter on an apparently comparable revenue basis.
- The materials differ on the reported increase in nonperforming loans, citing $52 million and $53 million.
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.