Wintrust Financial (NASDAQ:WTFC) Releases Earnings Results, Beats Expectations By $0.06 EPS

Wintrust Financial (NASDAQ:WTFC) posted its earnings results on Monday. The bank reported $3.37 earnings per share for the quarter, topping analysts’ consensus estimates of $3.31 by $0.06, FiscalAI reports. The company had revenue of $757.88 million during the quarter, compared to the consensus estimate of $754.54 million. Wintrust Financial had a return on equity of 13.26% and a net margin of 21.03%. The company’s revenue was up 8.6% on a year-over-year basis. During the same quarter last year, the firm earned $3.06 earnings per share.

Wintrust Financial Price Performance

Shares of NASDAQ:WTFC opened at $146.28 on Wednesday. The firm has a 50 day moving average of $149.25 and a 200-day moving average of $152.30. The stock has a market capitalization of $9.87 billion, a PE ratio of 11.22 and a beta of 0.89. The company has a current ratio of 0.98, a quick ratio of 0.97 and a debt-to-equity ratio of 0.62. Wintrust Financial has a 12 month low of $122.00 and a 12 month high of $167.21.

Wintrust Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were issued a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Thursday, August 6th. Wintrust Financial’s dividend payout ratio (DPR) is currently 17.67%.

Trending Headlines about Wintrust Financial

Here are the key news stories impacting Wintrust Financial this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. Wintrust reported diluted EPS of $3.37, above the $3.29-$3.31 analyst estimates, while revenue of approximately $757.9 million was modestly ahead of forecasts. EPS increased from $3.06 a year ago, and revenue rose 8.6% year over year. Wintrust Financial Q3 earnings beat
• Positive Sentiment: Profitability reached record levels. Third-quarter net income was $239.1 million, the company’s seventh consecutive quarterly record. Nine-month net income rose 17% to $700.1 million, while pre-tax, pre-provision income reached a record $1.0 billion. Wintrust reports record net income
• Positive Sentiment: Loan and deposit growth supports future revenue. Loans increased $1.1 billion and deposits rose $1.3 billion sequentially, both representing roughly 8% annualized growth. Management expects mid- to high-single-digit loan and deposit growth, with net interest margin remaining near 3.5%. Illinois core-market deposits grew 9.2% year over year, outpacing statewide growth. Wintrust growth outlook
• Neutral Sentiment: Net interest income increased despite a largely stable margin. Net interest income climbed to $621.6 million, driven by average earning-asset growth, while GAAP net interest margin was 3.49%, only slightly below the prior quarter.
• Negative Sentiment: Credit costs and some fee categories deteriorated. Net charge-offs rose to $21.0 million from $13.4 million, and provisions increased to $25.9 million. Non-interest income fell sequentially to $136.3 million, partly because mortgage banking revenue declined and investment securities produced a loss.

Insider Buying and Selling at Wintrust Financial

In related news, COO David Dykstra sold 13,515 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $162.77, for a total transaction of $2,199,836.55. Following the sale, the chief operating officer owned 166,449 shares in the company, valued at approximately $27,092,903.73. This trade represents a 7.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 1.24% of the company’s stock.

Wall Street Analyst Weigh In

WTFC has been the topic of a number of analyst reports. Citigroup lowered shares of Wintrust Financial from a “buy” rating to a “hold” rating in a research report on Tuesday, July 21st. Piper Sandler lifted their price target on shares of Wintrust Financial from $186.00 to $195.00 and gave the company an “overweight” rating in a research report on Monday, October 5th. Raymond James Financial started coverage on shares of Wintrust Financial in a research report on Tuesday, July 7th. They issued an “outperform” rating and a $180.00 price target for the company. Deutsche Bank Aktiengesellschaft initiated coverage on Wintrust Financial in a research note on Monday, October 12th. They issued a “buy” rating and a $175.00 price target for the company. Finally, Brean Capital downgraded Wintrust Financial from a “buy” rating to a “neutral” rating and set a $170.00 price target on the stock. in a research report on Tuesday, July 21st. Nine research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $176.64.

About Wintrust Financial

Wintrust Financial Corporation (NASDAQ: WTFC) is a financial holding company headquartered in Rosemont, Illinois. Through its network of community banking subsidiaries, the company provides banking and financial services to individuals, families, businesses and institutions.

Its offerings include checking and savings accounts, commercial and consumer lending, residential mortgages, treasury management, cash management and other deposit services. Wintrust also provides wealth management, investment services, insurance-related products and specialized finance solutions, including equipment finance and premium finance.

Founded in 1991, Wintrust has built its business through a community banking model that combines local decision-making and relationship-based service with the resources of a larger financial organization.