M&T Bank (NYSE:MTB) Q3 Earnings: What Can You Expect?

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M&T Bank Corporation (NYSE:MTB) is scheduled to report Q3 earnings results before markets open for trading on October 22, 2020.

The company is expected to report earnings of $2.53/share on revenue of $1.452 billion. The consensus earnings per share (EPS) of $2.53/share is based on a poll of 11 analysts and represents a decline in eps of −28.1% over the same quarter last year, when the company reported earnings of $3.53/share.

The revenue forecast of $1.452 billion based on a poll of 9 analysts implies a year-over-year (YoY) decline in revenue of −6.8%. Last year the company reported $1.558 billion in revenue for the quarter.

Expected to report EPS contraction of −28.1% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,452.02 $1,557.67 −6.8%
EPS $2.53 $3.53 −28.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.86 $1.70 −8.8% Missed
Q1, 2020 $2.51 $2.06 −18.2% Missed
Q4, 2019 $3.46 $3.64 5.1% Beat
Q3, 2019 $3.59 $3.53 −1.7% Missed
Q2, 2019 $3.68 $3.61 −1.9% Missed
Q1, 2019 $3.29 $3.35 1.7% Beat
Q4, 2018 $3.50 $3.73 6.8% Beat
Q3, 2018 $3.35 $3.55 6.1% 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 June 30, 2020, the stock price reacted by increasing 1.6%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $103.44 $105.13 1.6% Increase
April 20, 2020 $105.48 $104.63 −0.8% Decline
January 23, 2020 $161.87 $171.49 5.9% Increase
October 17, 2019 $158.93 $152.23 −4.2% Decline

Fundamentals And Technical Analysis

M&T Bank Corporation is currently trading at $97.96/share, down −2.1% for the day. The company is trading at approximately 56.3% of its 52-week high of $174/share. The company’s stock price is down −6.8% since the last earnings report and down −1.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 46.77 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 8.92 and a forward P/E multiple of 11.07.

M&T Bank Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.86. The following table summarizes some other key fundamental ratios:

Data as of October 20, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $97.96
P/E Ratio 8.9x
P/E Ratio (Fwd) 11.1x
PEG Ratio −0.4
Total Debt / Total Capital 31.7%
Levered Free Cash Flow $1.819 billion
Price To Sales 2.3x

Finbox

M&T Bank Corporation is a large-cap stock with a market capitalization of $12.566 billion. The company operates in the Financials 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; 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, 2019, the company operates 731 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West 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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