- Huntington reports second-quarter earnings of 17 cents a share, beating the consensus estimate of 15 cents.
- Net interest margin increases by two basis points, bucking industry trend.
- Average loans grow at 21% pace during second quarter, including Fidelity acquisition; period-end loans grew 3%.
The shares trade for 1.2 times their reports June 30 tangible book value of $5.49, and for 10 times the consensus 2013 earnings estimate of 65 cents. The consensus 2012 EPS estimate is 64 cents. Based on a four-cent quarterly payout, the shares have a dividend yield of 2.42%. Jefferies analyst Ken Usdin rates Huntington a "Buy," with a $7.50 price target, and said that "overall, results were solid for the quarter, with the one slight pushback likely to be credit quality," as "net charge-offs increased $1mm (to $84mm) and nonperformers fell $4mm (to $524mm)." The analyst noted that "nonperforming inflows increased to $221mm (from $135mm), but HBAN expects credit quality to continue to experience improvement." With Huntington buying back six million shares during the second quarter, the company is authorized to buy back another $140 million worth of shares, and Usdin expects "HBAN to use the majority of the buyback authorization over the next 9 months with the total payout (buyback and dividends) in the 50%-60% range." Interested in more on Huntington Bancshares? See TheStreet Ratings' report card for this stock.
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