NEW YORK (TheStreet) -- Shares of Webster Financial Corp. (WBS - Get Report) are falling by 3.78% to $36.11 on heavy trading volume late Tuesday afternoon, following the release of lower-than-expected earnings for the 2016 first quarter.
Before today's market open, the Waterbury, CT-based bank and financial holding company reported earnings of 51 cents per diluted share, which did not meet analysts' estimates of 53 cents per share.
Revenue for the quarter was $240.1 million, above Wall Street's expectations of $177.81 million.
"Solid quarterly results underscore Webster's sustained progress in executing growth strategies that maximize value to customers and shareholders. Both loans and revenue grew more than 10 percent, and total assets neared $25 billion," CEO James C. Smith said in a statement.
Loans grew by 11.1% to $1.6 billion, with double-digit growth in commercial, commercial real estate and residential mortgage loans.
About 1.28 million of the company's shares were traded by this afternoon compared to its average volume of 650,695 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 revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and expanding profit margins.
The team believes its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
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: WBS