First Horizon in April increased its share buyback program to $200 million, after repurchasing $44.5 million worth of common stock during the first quarter. CEO Bryan Jordan said during the conference call that "we don't see this, in isolation, having an impact on our repurchase program."
First Horizon's shares closed at $7.91 Monday, down 1% year-to-date, following a 32% decline during 2011.
The shares trade for 0.9 times their reported March 31 tangible book value of $8.78, and for 10 times the consensus 2013 earnings estimate of 80 cents a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is 53 cents.FBR analyst Paul Miller on Monday reiterated his "Underperform" rating for First Horizon, while lowering his price target for the shares to $6.50 from $8.00 and lowering his second-quarter 2012 EPS estimate to a loss of 56 cents from earning of 11 cents a share. The analyst lowered his full-year 2012 EPS estimate to a loss of 30 cents from earnings of 45 cents, and lowered his 2013 EPS estimate to 50 cents from 68 cents. Miller said First Horizon's second-quarter charge would work out to "$177M after-tax or $0.69 per share" and also said that "the company has yet to receive material private-label repurchase requests where it has meaningful exposure," and that "while its securities are performing relatively well, we believe private-label putbacks could ultimately prove to be costly." FBR estimates that First Horizon "still needs to work through approximately $1.0 billion of expenses before putting
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