Shares of M&T Bank Corporation (MTB) reached a new 52-week high of $124.40 on Jun 6. The stock closed the session at $123.73, reflecting a solid return of 22.2% over the past one year. The trading volume for the session was 507,483 million shares.
The company has delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 6.7%. Further, the long-term expected earnings per share growth rate for this regional bank is presently 6.8%.
Impressive first-quarter 2014 results, including improving credit metrics, strong capital ratios and lower provision for credit losses, primarily drove the stock price.
M&T Bank reported first-quarter earnings of $1.66 per share on Apr 14, beating the Zacks Consensus Estimate by 3.1%. The bottom line was however lower than $2.06 earned in the prior-year quarter.
Lower interest expenses and fall in provision for credit losses aided the bottom line, which was, however, partially offset by a decline in top line and rise in other expenses. Also, given its robust liquidity position, the company is well poised for growth through strategic acquisitions.
Estimate Revisions Show Potency
Over the last 90 days, the Zacks Consensus Estimate for 2014 has inched up 0.8% to $7.67 per share. For 2015, the estimate crawled up around 0.1% to $8.87 per share over the same time frame.
M&T Bank currently holds a Zacks Rank #3 (Hold). Some better-ranked banks include CVB Financial Corp. (CVBF), Customers Bancorp, Inc. (CUBI) and Territorial Bancorp Inc. (TBNK). All these stocks sport a Zacks Rank #1 (Strong Buy).