Trustmark (NASDAQ:TRMK) Releases Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Trustmark reported quarterly EPS of $0.95, beating estimates by $0.08, with revenue of $208.07 million versus consensus $204.92 million.
• The company delivered a record year with net income of $224.1 million and diluted EPS of $3.70, supported by loan and deposit growth and stronger mortgage and wealth-management performance.
• Shares trade at a market cap of about $2.68 billion and a PE of ~12.3, while analysts' consensus is a "Hold" with a $44.50 average target.

Trustmark (NASDAQ:TRMK - Get Free Report) issued its earnings results on Tuesday. The financial services provider reported $0.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.87 by $0.08, FiscalAI reports. The business had revenue of $208.07 million for the quarter, compared to analyst estimates of $204.92 million. Trustmark had a net margin of 19.95% and a return on equity of 10.77%. During the same period in the prior year, the firm earned $0.88 earnings per share.

Here are the key takeaways from Trustmark's conference call:

• Record year: Trustmark reported net income of $224.1 million and diluted EPS of $3.70, the highest in company history.
• Core banking performance drove continued loan and deposit growth, a strong net interest margin, and maintained solid credit quality.
• Mortgage banking posted increased production and materially improved profitability, and wealth management revenue reached an all-time high.
• Management plans to invest in technology to broaden reach, enhance customer experience, and improve efficiency going forward.
• Corporate governance matters were approved: all 11 director nominees were elected, advisory approval of executive compensation passed, and Crowe LLP was ratified as auditor.

Trustmark Stock Performance

TRMK stock opened at $45.50 on Wednesday. The company has a quick ratio of 0.87, a current ratio of 0.89 and a debt-to-equity ratio of 0.11. The firm has a market cap of $2.68 billion, a PE ratio of 12.26 and a beta of 0.65. The business has a 50 day moving average of $43.16 and a 200-day moving average of $41.14. Trustmark has a 12-month low of $33.09 and a 12-month high of $45.99.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Meeder Asset Management Inc. bought a new position in Trustmark during the fourth quarter valued at about $36,000. EverSource Wealth Advisors LLC raised its position in Trustmark by 452.2% in the second quarter. EverSource Wealth Advisors LLC now owns 1,248 shares of the financial services provider's stock worth $46,000 after acquiring an additional 1,022 shares during the period. Kestra Advisory Services LLC purchased a new position in Trustmark in the fourth quarter valued at about $55,000. Quadrant Capital Group LLC boosted its stake in Trustmark by 5,538.7% in the fourth quarter. Quadrant Capital Group LLC now owns 3,496 shares of the financial services provider's stock valued at $136,000 after acquiring an additional 3,434 shares during the last quarter. Finally, Cetera Investment Advisers bought a new position in shares of Trustmark during the 2nd quarter valued at approximately $207,000. Institutional investors own 67.64% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on TRMK. Wall Street Zen cut shares of Trustmark from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Keefe, Bruyette & Woods reiterated a "market perform" rating and set a $45.00 price target on shares of Trustmark in a research note on Thursday, April 9th. Brean Capital began coverage on Trustmark in a report on Thursday, March 12th. They set a "buy" rating for the company. Weiss Ratings reissued a "buy (b-)" rating on shares of Trustmark in a research note on Wednesday, January 21st. Finally, Hovde Group upped their price target on Trustmark from $42.00 to $44.50 and gave the stock a "market perform" rating in a report on Thursday, January 29th. Two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Trustmark presently has an average rating of "Hold" and a consensus target price of $44.50.

About Trustmark

Trustmark Corporation is a financial services holding company headquartered in Jackson, Mississippi. Through its principal subsidiary, Trustmark National Bank, the company provides a broad spectrum of commercial and consumer banking services. Trustmark's offerings include deposit accounts, lending solutions, cash management services, residential and commercial mortgage financing, and credit card processing.

In addition to traditional banking, Trustmark offers trust and wealth management services designed to meet the needs of high-net-worth individuals, families and institutional clients.