M&T Bank (MTB) Q4 2019 Earnings Prep

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M&T Bank Corporation (NYSE:MTB) is scheduled to report Q4 earnings results on January 23, 2020, before markets open for trading.

The company is expected to report earnings of $3.45/share on revenue of $1.522 billion. The consensus earnings per share (EPS) of $3.45/share is based on a poll of 11 analysts and represents a decline of -7.6% over the same quarter last year when the company reported earnings of $3.73/share.

The revenue forecast of $1.522 billion based on a poll of 9 analysts implies a year-over-year (YoY) decline of -1.1%. Last year the company reported $1.54 billion in revenue for the quarter.

Expected to report EPS decline of -$0.28/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $1,522.00 $1,539.56 -1.1%
EPS $3.45 $3.73 -7.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from M&T Bank for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $3.58 $3.53 -1.5% Missed
Q2, 2019 $3.69 $3.61 -2.2% Missed
Q1, 2019 $3.28 $3.35 2.1% Beat
Q4, 2018 $3.51 $3.73 6.5% Beat
Q3, 2018 $3.34 $3.55 6.4% Beat
Q2, 2018 $3.17 $3.25 2.4% Beat
Q1, 2018 $2.78 $2.84 2.2% Beat
Q4, 2017 $2.41 $2.66 10.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by falling by -4.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-17 $158.93 $152.23 -4.2% Decline
2019-07-18 $170.44 $162.87 -4.4% Decline
2019-04-15 $167.76 $168.28 0.3% Increase
2019-01-17 $154.42 $165.59 7.2% Increase

Fundamentals And Technical Analysis

M&T Bank is currently trading at $160.97/share, down -1.3% for the day. The company is trading at approximately 91.4% of its 52-week high of $176.11/share. The company’s stock price is up 5.7% since the last earnings report and down -3.4% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 40.23 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:MTB Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.9x and a forward P/E multiple of 11.5x. M&T Bank’s current share price also implies a price-to-book (P/B) multiple of 1.5x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $160.97
P/E Ratio 10.9x
P/E Ratio (Fwd) 11.5x
PEG Ratio -1.3
Total Debt to Capital (%) 36.4%
Levered Free Cash Flow $1.619 billion
Market Capitalization $21.516 billion

Source: Finbox

Company Profile: M&T Bank Corporation

M&T Bank Corporation is a large-cap stock with a market capitalization of $21.516 billion. The company operates in the Financial sector and the Banks industry.

M&T Bank Corporation operates as the holding company for Manufacturers and Traders Trust Company; and Wilmington Trust, National Association that provide banking services.

The company’s Business Banking segment offers deposits, business loans and leases, and credit cards; and cash management, payroll, and letters of credit services to small businesses and professionals.

Its Commercial Banking segment provides credit and banking services for middle-market and large commercial customers.

The company’s Commercial Real Estate segment offers multifamily residential and commercial real estate credit, and deposit services.

Its Discretionary Portfolio segment provides deposits; securities, residential real estate loans, and other assets; and short and long term borrowed funds, as well as foreign exchange services.

The company’s Residential Mortgage Banking segment offers residential real estate loans for consumers and sells those loans in the secondary market; and purchases servicing rights to loans originated by other entities.

Its Retail Banking segment offers demand, savings, and time accounts; consumer installment loans, automobile and recreational finance loans, home equity loans and lines of credit, and credit cards; demand, savings; and time accounts; mutual funds and annuities; and other services.

The company also provides trust and wealth management; fiduciary and custodial; investment management; and insurance agency services. It offers its services through banking offices, business banking centers, telephone and Internet banking, mobile banking, and automated teller machines.

As of December 31, 2018, the company had 750 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, and the District of Columbia; a full-service commercial banking office in Ontario, and Canada; and an office in George Town, Cayman Islands.

M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York.

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