Webster Financial Q2 Profit Rises 8%, Matching Expectations; Revenue Misses (WBS)
Financial services company Webster Financial Corporation (WBS) reported before the bell on Friday that it saw a 8% increase in second quarter income on higher net interest income and reduced expenses. Earnings were in-line with Wall Street estimates.
The Waterbury, Connecticut-based company posted a second quarter net income of $43.7 million, or 48 cents per share, up about 8% from $40.6 million, or 44 cents per share, a year ago. According to analysts polled by Thomson Reuters, the company was expected to earn 48 cents per share in the quarter.
Webster Financial, which is the holding company for Webster Bank, said its net internet income was $146.06 million for the quarter compared to $144.38 million last year. Total non-interest income increase to $52.25 million from $47.35 million last year. Analysts were expecting the company to deliver higher revenue of $147.84 million.
The company noted that its strong quarter was due to higher loan originations, strong revenue growth, improved asset quality, and increased gains in operating efficiency.
James Smith, Chairman and Chief Executive Officer of Webster Financial, said, “Core revenue growth exceeded 5% as net interest income reached its highest level ever, and expenses declined year over year. Looking ahead, our loan pipeline remains strong and is a positive indicator for the region’s economic prospects.”
Webster Financial shares were inactive during pre-market trading on Friday. The stock is up 28.61% year-to-date.
The Bottom Line
Shares of Webster Financial (WBS) have a dividend yield of 2.27% based on last night’s closing price of $26.43 and the company’s annualized dividend payout of 60 cents per share.
Webster Financial Corporation (WBS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
Get FREE Dividend Tips, Updates & MoreWe respect your privacy
- Powerful dividend insights sent every weekday morning
- Gain instant access to actionable investing tips
- Strategically grow your portfolio’s profitability