Umpqua (UMPQ) Stock Slides as Q2 Revenue Misses Estimates

Umpqua (UMPQ) stock is retreating late Thursday afternoon after the regional bank reported lower-than-expected revenue for the 2016 second quarter.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Umpqua (UMPQ) - Get Report are dropping 3.91% to $15.24 on heavy trading volume late Thursday afternoon after the Portland, OR-based company reported weaker-than-expected revenue for the 2016 second quarter.

After yesterday's closing bell, the regional bank holding company said revenue was $283.9 million, below analysts' forecasts of $288.5 million.

Earnings of 31 cents per share topped analysts' estimates of 29 cents per share.

"Despite the continuing low interest rate environment, Umpqua's financial performance for the second quarter was solid; highlighted by strong performance in the mortgage banking business and double-digit growth in loans and leases," CEO Ray Davis said in a statement.

About 3.58 million of the company's shares were traded so far today, above its average 30-day volume of 2.2 million shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations, growth in earnings per share, expanding profit margins, increase in net income and notable return on equity.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: UMPQ

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