People’s United Financial Inc. Earnings: Profits Grow by Double Digits For Fifth Straight Quarter

The Cheat Sheet

S&P 500 component People’s United Financial Inc.

reported its results for the fourth quarter. People’s United Financial is a savings and loan holding company for People’s United Bank, a diversified financial services firm. The company provides consumer and commercial banking as well as wealth management services to individuals and corporate customers.

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People’s United Financial Earnings Cheat Sheet for the Fourth Quarter .

Results: Net income for the savings and loan company rose to $43 million (12 cents per share) vs. $32 million (9 cents per share) in the same quarter a year earlier. This marks a rise of 34.4% from the year earlier quarter.

Actual vs. Wall St. Expectations: PBCT reported adjusted net income of 17 cents per share. By that measure, the company fell short of mean estimate of 19 cents per share.

Quoting Management: “Our performance throughout 2011 reflects the significant progress we have made in carrying out our two primary objectives – optimizing existing businesses and efficiently deploying capital,” stated Jack Barnes, President and Chief Executive Officer. “Our focus on organic loan and deposit growth throughout the franchise, including new market opportunities within the Boston and New York City MSAs, has resulted in improved operating leverage, which is evident in our 2011 financial results.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose more than twofold and in the second quarter, the figure rose more than threefold.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 19 cents versus a mean estimate of net income of 17 cents per share.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 20 cents a share. The average estimate for the fiscal year is 67 cents per share, a rise from 65 cents ninety days ago.

Competitors to Watch: Northeast Bancorp/ME , Naugatuck Valley Financial Corp. , Berkshire Hills Bancorp, Inc. , Rockville Financial New Inc (RCKBD), New Hampshire Thrift Bancshares, Inc. , Brookline Bancorp, Inc. , NewAlliance Bancshares, Inc. , SI Financial Group, Inc. , Oneida Financial Corp. , and Westfield Financial, Inc. .

Stock Performance: Shares of PBCT were down 0.1% from the previous close.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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