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On Thursday, Piper Sandler maintained a Neutral rating on Fulton Financial (NASDAQ:FULT) stock, with a steady price target of $21.00. Following the release of the company's third-quarter 2024 earnings, the firm analyzed the results, highlighting that Fulton Financial reported a core earnings per share (EPS) of $0.33.
After adjusting for one-time costs related to acquisitions and efficiency initiatives, the core EPS was recalculated at $0.47. This figure surpassed Piper Sandler's own estimate of $0.42 and the consensus estimate of $0.44, primarily due to a higher net interest income (NII) which contributed an additional $0.04.
Despite the positive outcome for the quarter, the company's guidance for the rest of the year remains unchanged, although management has indicated expectations toward the higher end of the previous range for NII.
The analysis suggests that, even with the quarterly earnings beat, the anticipated performance for the fourth quarter, along with expected rate cuts and preliminary expense projections for 2025, may prevent an upward revision of estimates for the next year.
The analyst pointed out that while their estimates were already on the higher end compared to other analysts, they are now lowering their expectations. However, a silver lining was noted in the company's guidance, which implies that there might be limited expense growth over the next two years.
This is attributed to the full integration of FRBK and the ongoing FultonFirst initiative, which could result in streamlined operations and cost efficiencies for Fulton Financial.
InvestingPro Insights
Fulton Financial's recent performance and future outlook can be further illuminated by data from InvestingPro. The company's P/E ratio of 11.55 suggests it may be undervalued compared to industry peers. This aligns with the analyst's Neutral rating and $21.00 price target, which implies potential upside from the current trading price.
InvestingPro Tips highlight that Fulton Financial has maintained dividend payments for 43 consecutive years, demonstrating a strong commitment to shareholder returns. This consistent dividend history could be particularly appealing to income-focused investors in the current economic climate.
Additionally, the company's high return over the last year, with a 1-year price total return of 54.31%, indicates strong market performance. This impressive return, coupled with a 31.31% price increase over the past six months, suggests investor confidence in Fulton Financial's strategy and execution.
For readers seeking a deeper understanding of Fulton Financial's financial health and market position, InvestingPro offers 8 additional tips and a comprehensive set of real-time financial metrics.
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