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Investing.com - Keefe, Bruyette & Woods raised its price target on Equity Bancshares (NYSE:EQBK) to $45.00 from $44.00 while maintaining a Market Perform rating.
The firm’s decision follows Equity Bancshares’ second-quarter earnings report, which showed operating earnings of $0.94 per share, exceeding expectations due to a lower provision and lower tax rate.
Pre-provision net revenue (PPNR) came in below KBW’s forecast, attributed to higher expenses and lower fees. Loans and deposits contracted during the quarter, shrinking 3% and 15% on an annualized basis, respectively.
Non-performing assets increased during the quarter, with KBW noting the increase was primarily related to one previously identified relationship that has multiple pathways to resolution.
KBW raised its 2025 earnings estimate by $0.09 to $3.76 per share after adjusting its model for the close of NBC Oklahoma and updated guidance, while maintaining its 2026 estimate.
In other recent news, Equity Bancshares reported its second-quarter 2025 earnings, which fell short of both earnings per share (EPS) and revenue forecasts. The company recorded an EPS of $0.86, missing the projected $0.888, and revenue of $58.39 million, below the anticipated $60.46 million. Despite this, Equity Bancshares saw net interest income rise to $49.8 million, a $1.8 million increase from the previous quarter, and noted an improvement in its net interest margin to 4.17%. The company completed a merger with NBC Bank, which contributed to loan production growth and is expected to enhance operational efficiency.
DA Davidson recently raised its price target for Equity Bancshares from $39 to $44, maintaining a Neutral rating. The firm cited the positive impact of lower credit and tax costs on earnings per share, despite revenue coming in below expectations. Analysts also highlighted the company’s strong net interest margin and increased loan activity as favorable factors. The merger with NBC Oklahoma is anticipated to further improve bank efficiency, with potential for more mergers and acquisitions in the future.
Equity Bancshares faces potential challenges, including credit quality concerns due to softening in the restaurant sector, although losses remain modest. The company expressed optimism for continued credit condition stability and plans for expansion into the Oklahoma City market. Future earnings per share are forecasted at $1.0 for Q3 2025 and $1.05 for Q4 2025, with annual projections of $3.74 for FY2025 and $4.43 for FY2026.
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