This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Big Bank Stocks Gearing Up for Third-Quarter Earnings (Update 3)

6. First Niagara Financial Group
Shares of First Niagara Financial Group (FNFG) of Buffalo, N.Y., closed at $8.07 Friday, down 4% year-to-date, following a 35% decline during 2011.

The shares trade for 1.6 times tangible book value, and for 10.2 times the consensus 2013 EPS estimate of 79 cents. The consensus 2012 EPS estimate is 72 cents.

Based on a quarterly payout of eight cents, the shares have a dividend yield of 3.97%.

For 12 months through June 30, First Niagara's ROA was 0.47%, while the company's ROE was 3.38%.

The analyst consensus is for First Niagara to report third-quarter earnings of 18 cents, increasing from a five-cent loss during the second quarter, but down slightly from 19 cents during the third quarter of 2011.

During the second quarter, First Niagara completed its deal to acquire roughly 200 branches from HSBC (HBC), while divesting about 100 branches, leading to an $18.5 million net loss, including about $135 million in extraordinary expenses and restructuring charges.

Moving ahead, investors will be looking for significant efficiency improvements and organic growth initiatives, now that the complicated branch deal has been completed.

Deutsche Bank analyst Dave Rochester rates First Niagara a "Buy," with a $9.50 price target, saying last month that "we continue to expect the valuation differential between FNFG shares and the mid cap banks to shrink over time as earnings visibility and investor sentiment improve, driving solid upside over the next year, but we note much of this upside could take time to develop, and is largely predicated on management's ability to consistently hit guidance and deliver on its organic growth strategy."

The analyst added that "FNFG recently indicated it could begin to increase the dividend as early as next year. Although we would expect any potential hike in FY13 (if it were to occur) would likely be small and occur later in the year, it would still signal management's longer-term commitment to rebuilding this level."

FNFG Chart FNFG data by YCharts

Interested in more on First Niagara Financial Group? See TheStreet Ratings' report card for this stock.

7 of 12

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,047.84 -23.38 -0.14%
S&P 500 1,969.30 -8.50 -0.43%
NASDAQ 4,488.6620 -17.19 -0.38%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs