Nucor earnings beat by $0.08, revenue fell short of estimates
On Friday, Stephens analyst Brandon Rud adjusted the price target on Associated Banc-Corp (NYSE:ASB) shares, reducing it to $26 from the previous $28, while maintaining an Equal Weight rating on the stock. According to InvestingPro data, the stock has shown significant momentum with a 10.27% return over the last week, while analysts’ targets range from $24 to $29. The revision follows Associated Banc-Corp’s announcement in late March of the completion of Phase 2 of its strategic plan that began in 2021. The company has significantly altered its balance sheet profile, product offerings, and delivery methods over the past four years.
The strategic changes at Associated Banc-Corp include a 50% increase in commercial and business bankers, aiming for smarter growth, higher-quality funding, and enhanced customer relationships. The company has demonstrated commitment to shareholder returns, with InvestingPro data showing 13 consecutive years of dividend raises and an impressive 51-year streak of maintained dividend payments. Despite these improvements, Stephens’ 2026 return on assets (ROA) forecast for the company is approximately 100 basis points, which is still below that of its peers.
Associated Banc-Corp’s first quarter of 2025 earnings per share (EPS) and pre-provision net revenue (PPNR) surpassed consensus expectations, potentially leading to some short-term stock performance. However, the company’s outlook for 2025 suggests that PPNR for the second to fourth quarters will align with consensus estimates. The firm also notes that Associated Banc-Corp’s excess capital, which is indicated by a common equity tier 1 (CET1) ratio over 10%, is likely to be utilized for organic growth rather than share repurchases.
As a result of the latest financial data, Stephens has increased its 2026 earnings estimate for Associated Banc-Corp by $0.10 to $2.80. Despite the lowered price target, Stephens continues to recommend an Equal Weight rating for the stock, suggesting a neutral stance on its performance prospects. For deeper insights into ASB’s valuation and growth prospects, including exclusive financial health scores and additional ProTips, investors can access the comprehensive research report available on InvestingPro.
In other recent news, Associated Banc-Corp reported its first-quarter earnings for 2025, beating analyst expectations with an earnings per share (EPS) of $0.59, compared to the forecasted $0.57. The company saw a significant increase in net interest income, which rose by $16 million, and total loans grew by $526 million. Core customer deposits also increased by 4% year-over-year, contributing to the company’s strong financial performance. The company’s revenue forecast was closely aligned with actual figures, and the positive earnings surprise reflects a trend of meeting or slightly exceeding expectations in previous quarters.
Additionally, Associated Banc-Corp has expanded into the Kansas City market and enhanced its digital strategy, positioning the company for continued growth. Looking forward, the company anticipates a 5-6% growth in total loans and a 4-5% increase in core customer deposits for the year 2025. Analysts from various firms have noted these developments, with some highlighting the company’s strategic initiatives and market expansion as key factors for its positive outlook. Despite economic uncertainties, such as potential tariff impacts and interest rate fluctuations, Associated Banc-Corp remains focused on balance sheet optimization and strategic investments.
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