Q3 Earnings Preview for Valley National (NasdaqGS:VLY)

in EARNINGS/INVESTING IDEAS by

Valley National Bancorp (NasdaqGS:VLY) is scheduled to report Q3 earnings results before markets open for trading on October 22, 2020.

The company is expected to report earnings of $0.25/share on revenue of $329.4 million. The consensus earnings per share (EPS) of $0.25/share is based on a poll of 10 analysts and represents a growth in eps of 2.1% over the same quarter last year, when the company reported earnings of $0.24/share.

The revenue forecast of $329.4 million based on a poll of 7 analysts implies a year-over-year (YoY) growth in revenue of 25.8%. Last year the company reported $261.8 million in revenue for the quarter.

Expected to report EPS growth of 2.1% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $329.38 $261.77 25.8%
EPS $0.25 $0.24 2.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 2 quarters, and met expectations 2 quarters.

What are your expectations from Valley National Bancorp for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.21 $0.23 9.9% Beat
Q1, 2020 $0.20 $0.21 7.2% Beat
Q4, 2019 $0.23 $0.24 4.1% Beat
Q3, 2019 $0.23 $0.24 4.2% Beat
Q2, 2019 $0.23 $0.23 0% Met
Q1, 2019 $0.22 $0.22 0% Met
Q4, 2018 $0.22 $0.21 −6.0% Missed
Q3, 2018 $0.23 $0.21 −9.9% Missed

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 3.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $7.51 $7.78 3.5% Increase
April 30, 2020 $8.30 $7.92 −4.6% Decline
January 30, 2020 $10.90 $10.53 −3.4% Decline
October 24, 2019 $11.59 $11.62 0.3% Increase

Fundamentals And Technical Analysis

Valley National Bancorp is currently trading at $7.48/share, down −1.2% for the day. The company is trading at approximately 61.6% of its 52-week high of $12.14/share. The company’s stock price is down −3.9% since the last earnings report and up 0.7% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 51.28 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:VLY Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.41 and a forward P/E multiple of 7.94.

Valley National Bancorp’s current share price also implies a price-to-book (P/B) multiple of 0.71. 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) $7.48
P/E Ratio 10.4x
P/E Ratio (Fwd) 7.9x
PEG Ratio −0.5
Total Debt / Total Capital 62.8%
Levered Free Cash Flow $1.405 billion
Price To Sales 2.8x

Finbox

Valley National Bancorp is a mid-cap stock with a market capitalization of $3.02 billion. The company operates in the Financials sector and the Banks industry.

Valley National Bancorp operates as the holding company for the Valley National Bank that provides commercial, retail, insurance, and wealth management financial services. The company operates through Commercial Lending, Consumer Lending, and Investment Management segments. Its deposit products include non-interest bearing, savings, NOW, and money market accounts, as well as certificates of deposit. The company offers various loan products comprising residential mortgage loans, automobile loans, secured personal lines of credit, and home equity loans; and floating rate and adjustable rate commercial and industrial loans, as well as fixed rate owner occupied and commercial real estate loans. It also invests in securities and interest-bearing deposits with other banks; and offers international banking services, such as standby letters of credit, documentary letters of credit and related products, and other ancillary services, such as foreign exchange transactions, documentary collections, foreign wire transfers, and transaction accounts for non-resident aliens. In addition, the company provides asset management advisory, trust, and asset-based lending support services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as real estate related investments. Further, it offers other banking services comprising automated teller machine, telephone and Internet banking, remote deposit capturing, overdraft, drive-in and night deposit, and safe deposit services. The company operates 238 branches in New Jersey, New York, Florida, and Alabama. Valley National Bancorp was founded in 1927 and is based in New York, New York.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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