Webster Financial (NYSE:WBS) Announces Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Webster Financial reported Q1 EPS of $1.57, beating estimates by $0.04, and reported revenue of $1.37 billion versus consensus of $749.96 million, with revenue up 4.4% year-over-year.
• The firm paid a quarterly dividend of $0.40 (annualized $1.60), implying a yield of 2.2% and a payout ratio of 27.07%.
• WBS trades around $72.09 with a market cap of $11.62 billion and a P/E of 12.2; analysts have a consensus rating of "Hold" with a $74.07 average target.

Webster Financial (NYSE:WBS - Get Free Report) posted its earnings results on Tuesday. The financial services provider reported $1.57 earnings per share for the quarter, beating analysts' consensus estimates of $1.53 by $0.04, FiscalAI reports. The company had revenue of $1.37 billion for the quarter, compared to the consensus estimate of $749.96 million. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.Webster Financial's revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.30 earnings per share.

Webster Financial Price Performance

WBS stock traded up $0.25 during midday trading on Tuesday, hitting $72.09. The company's stock had a trading volume of 2,740,807 shares, compared to its average volume of 4,036,129. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.40. Webster Financial has a 12 month low of $45.94 and a 12 month high of $74.00. The company has a 50 day moving average of $70.55 and a two-hundred day moving average of $65.08. The firm has a market capitalization of $11.62 billion, a price-to-earnings ratio of 12.20 and a beta of 1.03.

Webster Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Monday, February 9th were paid a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 2.2%. The ex-dividend date was Monday, February 9th. Webster Financial's dividend payout ratio is presently 27.07%.

Hedge Funds Weigh In On Webster Financial

Hedge funds have recently modified their holdings of the stock. BOKF NA bought a new stake in Webster Financial in the 3rd quarter valued at $26,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Webster Financial during the 3rd quarter valued at about $29,000. Atlas Capital Advisors Inc. bought a new position in shares of Webster Financial during the 4th quarter valued at about $31,000. Wilmington Savings Fund Society FSB purchased a new position in shares of Webster Financial during the third quarter valued at about $33,000. Finally, Brown Brothers Harriman & Co. grew its position in shares of Webster Financial by 27.9% during the third quarter. Brown Brothers Harriman & Co. now owns 839 shares of the financial services provider's stock valued at $50,000 after purchasing an additional 183 shares in the last quarter. Hedge funds and other institutional investors own 85.58% of the company's stock.

Analyst Upgrades and Downgrades

WBS has been the subject of several research reports. Barclays set a $75.00 price target on shares of Webster Financial in a research report on Wednesday, February 4th. Royal Bank Of Canada downgraded Webster Financial from a "moderate buy" rating to a "hold" rating and set a $75.00 price objective on the stock. in a research note on Wednesday, February 4th. Truist Financial cut Webster Financial from a "buy" rating to a "hold" rating and set a $74.00 price objective on the stock. in a research report on Wednesday, February 4th. Stephens reissued an "equal weight" rating and issued a $73.00 target price on shares of Webster Financial in a report on Wednesday, February 4th. Finally, Santander cut shares of Webster Financial from a "neutral" rating to an "underweight" rating in a research note on Tuesday, March 3rd. Four research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $74.07.

Webster Financial Company Profile

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.