Westamerica Bancorporation (NASDAQ:WABC) Issues Quarterly Earnings Results

Westamerica Bancorporation (NASDAQ:WABC) issued its quarterly earnings results on Thursday. The financial services provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05, Zacks reports. The firm had revenue of $64.05 million for the quarter, compared to analyst estimates of $63.10 million. Westamerica Bancorporation had a return on equity of 12.44% and a net margin of 41.63%. During the same period in the previous year, the firm earned $1.12 earnings per share.

Westamerica Bancorporation Stock Performance

WABC traded up $0.38 during midday trading on Friday, reaching $61.28. 245,510 shares of the company were exchanged, compared to its average volume of 261,503. The company has a market cap of $1.42 billion, a price-to-earnings ratio of 13.21 and a beta of 0.56. Westamerica Bancorporation has a one year low of $45.74 and a one year high of $63.61. The company’s fifty day moving average price is $59.11 and its 200 day moving average price is $57.50.

Westamerica Bancorporation Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Monday, August 3rd were given a dividend of $0.48 per share. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $1.92 annualized dividend and a dividend yield of 3.1%. Westamerica Bancorporation’s payout ratio is presently 42.29%.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Weiss Ratings raised shares of Westamerica Bancorporation from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Wall Street Zen upgraded shares of Westamerica Bancorporation from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. Finally, Keefe, Bruyette & Woods boosted their target price on shares of Westamerica Bancorporation from $64.00 to $65.00 and gave the company a “market perform” rating in a research report on Friday. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $65.00.

Key Stories Impacting Westamerica Bancorporation

Here are the key news stories impacting Westamerica Bancorporation this week:

• Positive Sentiment: Westamerica reported third-quarter diluted EPS of $1.22, exceeding the $1.17 analyst consensus, while revenue of approximately $64.1 million also topped expectations of $63.1 million. EPS increased from $1.12 a year earlier, helped by a reduced share count. Westamerica Q3 EPS report
• Positive Sentiment: Net income reached $28.2 million, up from $27.4 million in the prior quarter. Net interest margin improved four basis points sequentially to 3.81%, and the efficiency ratio remained strong at 40.8%.
• Positive Sentiment: Credit quality remained favorable: Westamerica recorded no provision for credit losses, while nonperforming loans fell to $476,000 from $2.6 million a year earlier. The company also paid a $0.48-per-share dividend and repurchased 51,000 shares. Westamerica third-quarter financial results
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target from $64 to $65. Although the firm maintained a “market perform” rating, the increase signals somewhat improved valuation expectations.
• Neutral Sentiment: Westamerica’s deposit base was broadly stable, and management said capital ratios remained above the highest regulatory guidelines. However, the bank continues to invest excess deposits heavily in securities rather than loans.
• Negative Sentiment: Total loans declined 11.1% year over year, including a 30.5% drop in consumer loans, indicating weak lending demand and limiting future interest-income growth.
• Negative Sentiment: Net income slipped 0.4% year over year, while year-to-date net income was down 6.2%. Shareholders’ equity also declined 15.2%, and noninterest expense increased 1.6% in the quarter.

Westamerica Bancorporation Company Profile

Westamerica Bancorporation is a bank holding company headquartered in San Rafael, California. Its principal subsidiary, Westamerica Bank, is a community bank serving individuals, businesses, nonprofit organizations and public entities in Northern and Central California.

Westamerica Bank offers a range of traditional banking products and services, including checking and savings accounts, certificates of deposit, commercial and consumer loans, residential and commercial real estate financing, and lines of credit.