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Valley National (VLY) Reports Q2 Earnings: What Key Metrics Have to Say

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Valley National (VLY - Free Report) reported $454.2 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 5.3%. EPS of $0.13 for the same period compares to $0.28 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $458.67 million, representing a surprise of -0.98%. The company delivered an EPS surprise of -35.00%, with the consensus EPS estimate being $0.20.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Valley National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio: 59.6% versus the six-analyst average estimate of 59.8%.
  • Net Interest Margin: 2.8% compared to the 2.8% average estimate based on six analysts.
  • Average Balance - Total interest earning assets: $56.77 billion versus the five-analyst average estimate of $56.68 billion.
  • Annualized ratio of total net charge-offs to total average loans: 0.3% versus 0.2% estimated by five analysts on average.
  • Net interest income - FTE: $402.98 million versus the six-analyst average estimate of $402.12 million.
  • Total non-interest Income: $51.21 million versus $56.69 million estimated by six analysts on average.
  • Bank owned life insurance: $4.55 million versus the five-analyst average estimate of $2.93 million.
  • Gains on sales of loans, net: $0.88 million versus $1.96 million estimated by five analysts on average.
  • Insurance commissions: $3.96 million compared to the $2.65 million average estimate based on five analysts.
  • Wealth management and trust fees: $13.14 million compared to the $15.17 million average estimate based on five analysts.
  • Service charges on deposit accounts: $11.21 million versus $11.01 million estimated by five analysts on average.
  • Fees from loan servicing: $2.69 million compared to the $3.20 million average estimate based on four analysts.
View all Key Company Metrics for Valley National here>>>

Shares of Valley National have returned +18.5% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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